Provident Fund

This query is : Resolved

CA Kanwaljeet (Querist)
Follow

17 June 2011 Hello Sir,
I want to know that during the audit i found PF deposited by the employer on employees basic salary is 12%, but Employer deposited PF @13.61% on the basic salary of the employee
So, i want to know that whether it is disallowed under the income tax or not.

Sangam

Sangam (Expert)
Follow

18 June 2011 1.61% is the admin charges.
total deduction is 13.61% only.
Provident fund deduction for employers is calculated as follows :
1. Employers Contribution
2.EPF A/c No.1 - 3.67%
3.EPF - Admn Charges - 1.1%
4.Pension Fund A/c No.10 - 8.33%
5.EDLI A/c No.21 - 0.5%
6.EDLI - Admn Charges - 0.01%