BHUPENDER (ca) 16 April 2012
Dear freinds ,
Please help me out in the following tax matter
My salary is 30000 exclusive of Provident fund contribution . my joining letter represents my salary as follows 30000+1900 for pf . but when i got my salary it is 30000-1900=28100 that means they have deducted the pf contribution from my salary . Now i want to know that the amount they are showing in my CTC is employee contribution or employer contribution .
also i want to know if it is employee contribution then why they are not giving me the same then deducting it i.e. 30000+1900-19000=30000.
and if it is employer contribution than it is included in my taxable income then whether i can claim deduction under 80 c as (1900+19000)*12 .
Please show the complete calculation for better understanding thanks in advance
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DIBYENDU (SERVICE) 16 April 2012
Rs.1900.00 deducted from his Salary is your (employee) contribution towords Provident Fund.
Practically your CTC is 31900.00 (i.e. Rs. 30000+ Rs.1900). So, Employer will give you Rs.28100 (Rs. 31900.00 CTC , Less ; Rs.1900.00 deducted therefrom for Employer Contribution & Rs. 1900.00 for Employee Contribution)
Yes you may claim Rs.3800.00 X 12 manths for deduction U/s 80C
Ritesh Jain (CA, CS in Job) 16 April 2012
Employer's contribution is not included in your total income if its upto 12%.
Rs 30000+1900 which company quoted as CTC is as follows :
(Rs 30000 - Rs 1900)---- you will get i.e take home
+ Rs 1900-- which will be deducted as above for your contrn to PF
+ Rs 1900-- in addition to above for employer contribution to PF ( in practical world , employer contribution is not equal to employees bcoz of EPS part involved in employers contribution)
80C is only available for EMPLOYEES contribution....