Is the share paid by employer towards Provident fund be included in Employee's Salary for the purpose of Tax Calculation.
Menu
RPF Employer Share
Replies (2)
If employer’s contribution is upto 12% of salary and interest does not exceed notified rate of interest (At present 9.50% p.a.), it is not taxable.
However, the accumulated balance due and becoming payable to an employee participating in Recognised Provident Fund (RPF) is taxable u/s.17 under the head Income from Salary to the extent of Employers contribution and interest thereon, if i) he does not serve for continuous period of 5 years with the said employer or ii) termination of service is due to reasons beyond his control or iii) in case of employment with other employer, balance in RPF is transferred to RPF account maintained by his other employer.
Recent Threads
- E way bill expired penalty
- Best SME Focused AIF Funds in India for High Growt
- How does employee management software help in stat
- Clarification Required – Section 18 of Wage
- How to split freelance project income with a frien
- 194a for A y 2024-25
- Compensation & Benefits
- SAC code and GST rate transport services for anima
- Section 44AB is Gone — How Different is Tax
- Capital Gains from Cancelled Residential Project
Related Threads
CAclubindia
