A Public Sector Bank has included the amount of Accumulated Balance of Employees Share of PF paid to the employee at the time of retirement under Salary and allowed Exemption under Sec. 10(11) for the same amount in Form 16. (Accumulated balance of Employer share of PF is not paid to the employee as Pension is payable) please clarify whether the above treatment is correct.
Thanks. But Employee's Contribution of PF is paid by employee by way of recovery from monthly Salary & it is not paid by employer. Only the accumulated interest in Employee's share of PF is the amount paid by PF Trust at the time of retirement ( apart from Employee's Contribution of PF) Interest in Employee's share is taxable beyond the specified limits of Rs. 2.5 L / Rs. 5 L in the respective year to which it pertains to & not the entire amount of Accumulated Interest. Please clarify.