SALARY

Is employee 'contribution towards Unrecognised provident fund taxable ??
Replies (1)

Unrecognised Provident Fund (URPF) means provident fund which is not recognised by the Inocme Tax Officer.

Please note that employee's contribution to an URPF during the course of his employment is not allowable as deduction (since it is just an outflow of funds for him).

Amount received on the maturiy of URPF -

> Employee's contribution is not taxable.

> Interest on Employee's contribution will be taxable under the head " Other Source ".

 

 

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