04 March 2008
sir employer contributes some amount to unrecognised pf and unapproved gratutity fund on behalf of employees.is it admissible expenditure in business under what section? if it is inadmissible it is taxable in the hands of employer.and same is taxable in the hands of employee at the time of receipt,so there is double taxation on same.how it is possible?please explain me elobrately.
04 March 2008
AT THE TIME OF RECEIPT ONLY THE INTEREST IS TAXABLE AND NOT THE PRINCIPAL CONTRIBUTED BY EMPLOYER. IN CASE OF UNRECOGNISED FUND THE EMPLOYEE DOES NOT GET DEDUCTION U/S 80C IN RESPECT OF CONTRIBUTION MADE BY EMPLOYER
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