Employer Contribution of PF @12% included in form 16

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V Vijay Narayan Rao

Pensioner

24 Points Posted on 25 August 2020

Dear Sir,

Form 16 issued by the Employer (A Govt of India Undertaking) included PF Contribution @ 12% as income hence Tax deducted on same,details of Pay slip is as follows :-

Income Side

Basic Rs-59,350/-

DA Rs- 5,935/-

PF @ 12% (On Basic and DA) Rs 7,834/-

Total (59350+5935+7837) X 12 = 8,77,464 /- (Form 16 also shows Rs 8,77,464/-

Deduction side

PF Rs-7,834/-

7834 X 12= 94008/-

So my query is Total Income will be 8,77,464

8,77,464-94008=7,83,456 if yes how to show this figure (7,83,456/- ) in ITR because Form 16 is showing Rs 8,77,464/-

Thanx with Regards

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Replies (3)

Quick Summary

This discussion addresses a common query regarding employer PF contributions being included as income in Form 16, leading to TDS. The consensus is that the full amount should be shown in your salary income, and then the employee's PF contribution (along with other eligible expenses) can be claimed as a deduction under Section 80C, up to the limit. The employer's contribution itself should generally not be treated as taxable income.

rama krishnan

5751 Points Posted on 25 August 2020

Contribution to pf is deductible Under section 80c. so in the column against income from salary show rs. 877464. claim the pf deducted including employer's contribution up-to an extent of rs. 1.5 lakhs and show the balance amount as total income. generally employer's contribution towards pf shouldn't be included in salary

Ravi SADhiyan

Practice

3087 Points Posted on 25 August 2020

Originally posted by : V Vijay Narayan Rao
	Dear Sir, Form 16 issued by the Employer (A Govt of India Undertaking) included PF Contribution @ 12% as income hence Tax deducted on same,details of Pay slip is as follows :- Income Side Basic Rs-59,350/- DA Rs- 5,935/- PF @ 12% (On Basic and DA) Rs 7,834/- Total (59350+5935+7837) X 12 = 8,77,464 /- (Form 16 also shows Rs 8,77,464/- Deduction side PF Rs-7,834/- 7834 X 12= 94008/- So my query is Total Income will be 8,77,464 OR 8,77,464-94008=7,83,456 if yes how to show this figure (7,83,456/- ) in ITR because Form 16 is showing Rs 8,77,464/- Thanx with Regards