PF Part of Salary

This query is : Resolved

Ashish Sharma (Querist)
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16 July 2011 In a Salary Structure EPF employee contribution amount is a Part of Salary. Is it right.if yes then how the tax will calculate

CMA. Subhash Kumar Jha

CMA. Subhash Kumar Jha (Expert)
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16 July 2011 It can only be a part of CTC... It can not be a part of salary.

Tax is to be calculated only on salary (without including employer's contribution) & not CTC.

CA Navin Jain

CA Navin Jain (Expert)
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16 July 2011 Yes, its part of Salary ...

IF EMPLOYEE GETTING SALARY RS. 100000 PM AND HIS CONTRIBUTION IS RS. 12000 PM

WE CALCULATE TAX ON THE BASIS ON RS. 100000 BUT EMPLOYEE IS ELIGIBLE TO DEDUCTION U/S 80C UPTO RS. 100000

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CMA. Subhash Kumar Jha

CMA. Subhash Kumar Jha (Expert)
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16 July 2011 Sorry... I was referring to EMPLOYER's CONTRIBUTION......