Himanshu Jain (Management Trainee) (29 Points)
18 June 2012Hi Friends,
Suppose my CTC is 10,000 and it includes employer contribution of 1000 regarding PF. I just wanted to ask that this 1000 should be the part of my taxable salary or not.
I am in the view that it should not be the part of my taxable salary as it is the obligation of empolyer to contribute 12% of my Basic salary to My PF account.
Whats ur views?
Rohit Somani
(Chief Account Officer)
(35 Points)
Replied 19 June 2012
Tanvi
(Practising CA)
(223 Points)
Replied 19 June 2012
Gajendra R. Tiwari
(Senior Manager-Accounts & CA IPCC Student)
(429 Points)
Replied 19 June 2012
Employer Contribution Towards PF will be exempt upto 12% of Basic Salary and in excess of 12% it will be taxable in the hands of employee.
CA Chirag Haraniya
(Chartered Accountant)
(902 Points)
Replied 19 June 2012
| Originally posted by : Gajendra R. Tiwari | ||
 |
Employer Contribution Towards PF will be exempt upto 12% of Basic Salary and in excess of 12% it will be taxable in the hands of employee. |
 |
UMESH KUMAR TRIPATHI
(STUDENT CA- FINAL)
(74 Points)
Replied 19 June 2012
enployer's contribution toward provident fund is exempt as follows:
STATUTORY PROVIDENT FUND : FULLY EXEMPT
RECOGNISEPROVIDENT FUND : UP TO 12% OF SALARY***
UNRECOGNISE PROVIDENT FUND : EXEMPT AT THE TIME OF PAYMENT BUT TAXABLE WHEN WITHDRAWN.
***SALARY FOR THIS PURPOSE INCLUDE BASIC + D.A. (IF IT IS TAKEN FOR RETIREMENT BENIFIT).
Gunjan Tulsyan
(Article)
(222 Points)
Replied 19 June 2012
YUP it wont be taxable,once it crosses the 12% mark then then the surplus amount i e the amount above 12% would be taxable.
TARUN KUMAR GOEL
(COMMERCIAL CUM ACCOUNTS MANAGER)
(37 Points)
Replied 20 June 2012
Navin Jain
(Asst. Accountant)
(28 Points)
Replied 20 June 2012
Employer's contribution will not treat as your taxable salary upto 12%
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