19 July 2008
I have offered CTC Rs.2 Lakhs with a Basic of Rs.8, 000/-
Our HR person has informed me that my Basic exceeds Rs.6, 500/- hence, PF deduction is not compulsory. If I haven’t opted PF deduction then I can take home my salary without any deduction. If I have opted PF deduction, then the company’s share also will be deducted from my salary (that is CTC). If I choose PF what benefit can I enjoy? If not what am I loosing?
19 July 2008
The benefits: 1. Carries a better intt rate 2. Intt income is tax free 3. Deposit is Deductible u/s 80C 4. The fund is not attachable 5. Forced savings
CAclubindia
