LIVE GST Certification Course by CA Arun Chhajer begins 27th April. Register Now!!

PF

Divya.M (CA Final Student) (274 Points)

09 December 2010

How s PF calculate. s HRA included n gross salary for PF calculation?

Reply
Follow
Share

8 Replies

CA Sahil Singla.. (Service Tax ) (3746 Points)
Replied 09 December 2010

As per The Employees Provident Funds & Miscellaneous Provions Act 1952, the PF should be deducted on pay..wich includes Basic wages, Dearness Allowance ,Retaining Allowance

Divya.M (CA Final Student) (274 Points)
Replied 09 December 2010

tats ok s HRA included? even adding HRA PF s calculated?

CA. MOHAMMAD.QUSROO (CA FINAL) (81 Points)
Replied 09 December 2010

PF will be calculated on (basic+da), if (basic+da)is more than Rs.6500, we take
calculation on the 6500 @ 12% i.e. Rs. 780/- is maximum limit.

CA Sahil Singla.. (Service Tax ) (3746 Points)
Replied 09 December 2010

so it's clr that HRA should not be included while computing PF

Hemant (AM - IA/SOX) (78 Points)
Replied 09 December 2010

Hi Divya,

PF is calculated on Basic +DA (if it is part of you salary). It is directly proportinate with your Basic Salary. HRA is not consider as it has its own tax treatment and does not give comfort for provident fund for an employee.

Thanks

Hemant