28 July 2011
Both the employer and employee contribute towards Provident Fund. The contribution made by employees is eligible for deduction u/s 80C sub to max of Rs 1 Lac. The contribution by the employer is over and above salary of employee and therefore is seen as income of employee and taxed in excess of 12% i.e. Employers contribution in excess of 12% is added with the salary income of employee. Interest income Exempt upto 9.5%. Interest exceeding 9.5% shall be added to employee's Salary Income
28 July 2011
The contribution by the employer is over and above salary of employee and therefore is seen as income of employee and taxed in excess of 12% i.e. Employers contribution in excess of 12% is added with the salary income of employee.
So since there is no income in employer contribution the same is not allowable as deduction u/s 80C.
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