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.
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Employers contribution to pf exempt
Replies (4)
It is calculated as perquisite, while same will be exempt u/s. 8CCD(2) of IT act..
Employers share is statutory liability . So it may not be included in salary.
Only employees contribution is deductible under section 80C
Only employees contribution is deductible under section 80C
Both are statutory liabilities.
employers share of pf is also exempted .Execess is taxable.
employers share of pf is also exempted .Execess is taxable.
80C has only employees contribution to EPF
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