06 September 2010
dear sir, plz guide me about VPF in below illustration an employee in my comp. his salary break up is basic 17807, hra- 9173, tpt- 800 = total-27780 deduction:- EPF - 780,VPF - 2000 total salary payable = 24995
now query is can I show vpf in salary slip ??? & can employer deposit it ? & what is the contribution % of employer ?
or is this employee investment like PPF u/s 80c & deduction up to 1 lac ???
06 September 2010
PPF is a different instrument which is being held be employees in his personal capacity, while the PF or VPF is a contribution to PF through the employer opened PF account.
Of course, the 80 C deduction is available on all in the same manner, be it PF / VPF or PPF.
06 September 2010
The Employers' contribution to the PF to the extent of 12% of the basic salary is not taxable. Employee can voluntarily contribute to a higher amt. The total amt. contributed by the Employee is covered u/s 80C and will be allowed as deduction within the limit of Rs. 1 Lac.
Your employer would give the TDS certificate giving the deduction in respect of HRA u/s 10(13A), if the conditions are satisfied and accordingly u are required to file the IT return based on the cert.
CAclubindia
