Employees contribution to pf.

This query is : Resolved

FARRUK (Querist)
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26 October 2013 Employees contribution taxable or deductable under the head business and profession... can any 1 explain in detail..

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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26 October 2013 employee contribution is not taxable. it comes under 80C deduction also

employee contribution is not business expenses for employer it is contribution by employee and outflow for employee only

Nikhil Kaushik

Nikhil Kaushik (Expert)
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26 October 2013 please note that employees' contribution is made out of the salary paid by the employer. Thus in nutshell, you have already claimed deduction for the same under salary.

So why be greedy to claim deduction twice!! As Ramesh Ji already said its a contribution out of employee's salary. Employer just deduct it and deposit with PF in its fiduciary role.

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