Epf

Dear All,

  1. When EPF is applicable
  2. what is percentage of contribution of employer and employee
  3. can any employer need not contribute for PF
  4. is employees contribution added in his salary or it is straightly allowed as deduction under chapter VI A
  5. wat is taxability of employers contribution
  6. wat is salary for the purpose of PF
Replies (1)

1) Applicable to any establishment where 20 or more people are employed

2) A) Employee :- 12%

    B) Employer :- 13.61%

3) no PF contribution is compulsory as per the act. the only relief is, maximum contribution by the employer as per compulsion is Rs. 780/-. he is, by law, not required to contribute any more than that

4) fpr employee all contributions are tax free be it employer or employee. Interest is also tax free

5) Salary means Basic + DA

Employees contribution is to be deducted u/s 80C. Obviously you have to add it in the total income before you deduct anythiing

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