CCI Online Learning
What do you want to learn today?

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

Treatment of pf contribution

BHUPENDER (ca)     16 April 2012

 66 points

| My Other Post

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


DIBYENDU (SERVICE)     16 April 2012

 23 likes  266 points

View Profile | My Other Post

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

1 Like


 5 likes  87 points

View Profile | My Other Post

Agree with Dibyendu.


C.A. M.Com. Suhas A. Nagpure (CA)     16 April 2012

C.A. M.Com. Suhas A. Nagpure
 42 likes  1175 points

View Profile | My Other Post

Please note-

employer’s contribution is exempt from tax, your contribution (i.e., employee’s contribution) is counted towards section 80C investments.


Ritesh Jain (CA, CS in Job)     16 April 2012

Ritesh Jain
CA CS in Job 
 42 likes  670 points

View Profile | My Other Post

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....


Leave a reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Related Threads


Popular Discussion

view more »

Trending Tags
GST Live Class    |    x