Employer contribution of pf

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.

What Gajendra wrote is correct

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UNRECOGNISE PROVIDENT FUND : EXEMPT AT THE TIME OF PAYMENT BUT TAXABLE WHEN WITHDRAWN.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).

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.

No, it is not taxable in the hands of the Employee as this is the liability of the Employer.

Thanks, 

T.K.Goel

Employer's contribution will not treat as your taxable salary upto 12%