21 March 2011
PF contribution emploer and employee will be get exempted. However, employee contribution exceeding 12.5% of salary shall be treated as perquisite...
21 March 2011
PF is automatically deducted from your salary. Both you and your employer contribute to it. While employer’s contribution is exempt from tax (upto 12%), your contribution (i.e., employee’s contribution) is counted towards section 80C investments.
21 March 2011
Vivek Ji please check your reply. Employees total contribution is treated as deduction u/s 80C subject to maximum of Rs 1 Lac. But employer's contribution is exempt upto 12%. In excess of 12% is taxable in the hands of employer.
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