15 January 2021
Recently bank employees salary was revised and arrears paid for the period from November, 2017 to December, 2020. For those employees who retired after November, 2017 the PF balance in their credit was already repaid to the employees on retirement and PF account stands closed for them. Now while paying salary arrears for the period from Nov 2017, PF was deducted from the arrears. Since there is no PF account for the retired employees now, Banks are refunding the PF now deducted to the employees. The question is whether this PF deduction made is eligible for exemption under 80CC of I-T. In this connection, please bear in mind that the PF deducted from the employees salary during the month of their retirement is also considered for exemption under 80cc i.e., the last months salary will be paid on the last day of the month which is also the date of retirement for the employee and the PF deducted on this last month's salary is also eligible for 80 cc. Please guide me.
CAclubindia
