If ctc is 795000 comprising of 375000 basic 375000 allowance n 45000 provident fund and employee also contributes 12% of basic then the following will be the income from salary head
Salary 795000
Employers contribution (45000)
Standard deduction. (50000)
Professional Tax. (2400)
Employees contribution (45000)
So my question is whether employers contribution will also be deducted as exempt income while computing income tax.
CAclubindia
