Provident Fund

Can someone please help me clarify the following?
 
- Is the amount received from the provident fund after 2 years of service taxable or not?
- If the amount is taxable, is the whole amount taxable or only part, thereof is taxable (please see example below)?
 
Example
Total amount received – INR 215,000 comprising of:
Employee’s contribution INR 110,000
Interest on Employees’ Contribution INR 9,000
Employer’s contribution INR 90,000
Interest on Employer’s Contribution INR 6,000
 
Please let me know the taxable amount in the below 2 scenarios:
Scenario 1: If no separate provident fund is established by the company and dues are deposited in EPF India
Scenario 2: If a separate provident fund is established and recognized by IT Commissioner and dues are deposited in that PF

Replies (1)

Mr.Dinesh Dhariwal

As per the provisions of section 10(11) of IT Act, the amounts received are exempted.  Anyhow before claiming exemption you have to show your papers/documents to an expert and act as per the advice of that expert.

Best Wishes

Sathikonda

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