Tax on excess contribution of pf above 6500 by employer

Hey my clint made excess contibution toward PF of employee.who having salary more then 6500. whether in excess of 6500 contribution made by employer is taxable in the hand of the employee.

actual case.

employee salary

basic 15000

DA     12000

total    27000  employee contribute @ 12% and also Employer contribute same amout of employee.3250(27000*12%)( as in ratio of pf and pansion that is fine) .my doubt is in excess of 780(6500*12%) contributre by employer should be taxable in hand of employee and it should shows in form 16 of employee. 

give appropriate suggestion regarding this..

thx

Replies (2)

Hi

 

It is not taxable, a contribution of in excess of 12% on Salary is taxable.

 

Thanks

agree with vaibhavJ, excess over 12% will be taxable

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