Is employer's contribution to Public/Statutory Provident Fund taxable in the hands of employee? And can any1 tell me the list of non monetary perquisites!
12 Replies
U S Sharma
(glidor@gmail.com)
(21063 Points)
Replied 27 October 2011
| Originally posted by : Fazil Ahmad | ||
 |
Is employer's contribution to Public/Statutory Provident Fund taxable in the hands of employee? And can any1 tell me the list of non monetary perquisites! |
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after completion of 5 complete years of contribution to PF, amount is exempted,
premature withdrawls before completion of five years is taxable in the year of withdrawl.
Rahul Suneja
(CA-Final, CS-Exec)
(215 Points)
Replied 27 October 2011
employeer contribution to epf is exempt from tax in hands of employee but only to a maximum limit of 12%per month .Over and above 12% is taxable
Kunal
(Risk Analyst)
(299 Points)
Replied 27 October 2011
12% kiska dekhte hai...is it basic salary or salary including DA,bonus,commission etc
Mugundan
(Live your Passion)
(249 Points)
Replied 27 October 2011
Hi Fazil.,
Employer does not contribuite to Public Provident Fund for the Employees
Employer's Contribution to Statutory Provident Fund is Exempt from Tax u/s 10(12) for the Employees.
Mugundan
(Live your Passion)
(249 Points)
Replied 27 October 2011
Hi Roopak...
12 % should be calculated on
( Basic Salary + D.A.(Forming part of Salary) + Commission on Turn Over )
Nabeel
(CA)
(3288 Points)
Replied 27 October 2011
Employer contribution to EPF is exempted upto 12% of salary where salary means Basic salary + DA + Commission on fixedpercntage of turnover........
CA PRAVEEN SINGH
(MANAGER ACCOUNTS)
(2277 Points)
Replied 27 October 2011
As per amendment-dated 22.9.1997 in the Act, both the employees and employer contribute to the fund at the rate of 12% of the basic wages, dearness allowance and retaining allowance, if any, payable to employees per month. The rate of contribution is 10% in the case of following establishments:
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Any covered establishment with less then 20 employees, for establishments cover prior to 22.9.97.
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Any sick industrial company as defined in clause (O) of Sub-Section (1) of Section 3 of the Sick Industrial Companies (Special Provisions) Act, 1985 and which has been declared as such by the Board for Industrial and Financial Reconstruction,
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Any establishment which has at the end of any financial year accumulated losses equal to or exceeding its entire net worth and
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Any establishment engaged in manufacturing of (a) jute (b) Breed (d) coir and (e) Guar gum Industries/ Factories. The contribution under the Employees' Provident Fund Scheme by the employee and employer will be as under with effect from 22.9.1997.
JR Kumar
(faculty director)
(27 Points)
Replied 28 October 2011
It is not obligatory on the part of employer to contribute to the PPF account opened by an employee.Hence any contribution by the employer to such PPF account of employee will be treated as a part of salary and will be included in the taxable income of the employee
.However amount deposited in the PPF account of the employee will beome eligible for the standard tax exemption available for savings subject to limit as prescribed in IT Act for the concerned year.
JR Kumar,
Faculty Director,
FAPCCI,Hyd
Mobile 98859 21599
capandureddy
(Chartered Accountant)
(44 Points)
Replied 28 October 2011
PPF account can be opened by any person and standard assumption what ever amout get deposit in PPF account was that it has been deposited by the account holder
Since here your employer has deposited the amout in your PPF account what ever amount get deposited first it is treated at par as salary and benefit you get here is you are eligible to that amount under Section 80c for claiming chapter via deductions
But generally employor has to contribute to PF not to PPF
Manoj R. Agrawal
(Service)
(86 Points)
Replied 30 October 2011
Employer can not contribute to PPF - Public Provident Fund.
To EPF (Statutory provident fund - exempt up to 12% as mentoned above
Manoj Kumar Choudhary
(Deputy Manager in Finance)
(21 Points)
Replied 11 July 2014
What is the procedure of deduction of PPF by a company or empolyer?
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