Sec 80C / Sec 7

This query is : Resolved

Rajat (Querist)
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06 April 2009 Suppose employer is contributing 20% of salary to Reco EPF.

Thus u/s 7 - 8% will added as deemed taxable salary to employee (Being 12% of Salary is exempt)

Now if this 8% is added in income and it being deposited into Reco EPF, it should qualify for deduction u/s 80C.

But I assume it is not so. Why ?

chetan soni

chetan soni (Expert)
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06 April 2009 As per PF Act obligation on employer to contribute is only 12%.Over & above 20% will be considered as prequisite as per income tax act & be taxable as income in hands of employees.

Please note that employers contribution shall not be count for investment u/s 80C. Only employees contribution will be counted for investment whatever may be the contribution rate.

Guest

Guest (Expert)

06 April 2009 Rightly said....only employees cont is counted.

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