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Treatment of epf contribution _ employer & employee contribution

Tax queries 390 views 1 replies

Hi all,

Please check whether I am correct regarding the treatment of EPF Contribution of both employer as well as employee at the time of filing return:

Mr. X has the following Salary structure : Gross Salary = Rs.22,280/-, P.tax = Rs.130, Employee Contribution = Rs.1,337/-. Hence, he is receiving in his bank net Rs.20,813/- [22,280-130-1337].

Further, Employer Contribution is Rs.1,337/- [EPF Portion = Rs.409/- + EPS Portion = Rs.928/-] .

 

So, the Salary income to be reported in ITR is as follows:-

Gross Salary :                     22,280

(-) P.tax :                                 130

(+) Employer's Contribution :  1,337

                                     Rs.23,487 

(-) Deduction U/s 80C :          2,674 (1337*2) 

                                     Rs.20,813

Is this treatment correct? Or, there is no need to add the Employer's Contribution in the Gross Salary and also no need to deduct U/s 80C?

 

 

Replies (1)
ignore Employer's contribution
simply show as per Form 16 alongwith 26AS


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