Become a Govt. Certified GST Practitioner in just 58 hours. Register Now!

Employer's Contribution to Provident Fund

Deepanshu Garg (Student) (273 Points)

01 April 2021

Employer's Contribution to Recognised Provident Fund is exempt under income tax upto what limit ?
a) 1800; or
b) 12% of basic salary without any limit

Thanks & Regards

Reply
Follow
Share

3 Replies

CA. Sourav Sarkar (Chartered Accountant ) (24583 Points)
Replied 01 April 2021

12% of basic salary without any limit

1 Like

Upgrade to CAclubindia Pro. Subscribe Now!

Deepanshu Garg (Student) (273 Points)
Replied 01 April 2021

Sir, can you provide the relevant section or any other relevant notification regarding this.

CA. Sourav Sarkar (Chartered Accountant ) (24583 Points)
Replied 02 April 2021

Contribution More than 12% of Basic Salary Towards EPF
Employees usually contribute 12% of their basic salary while the employer makes a contribution of 13.61% towards the EPF. EPF is an retirement investment plan opted by a number of employees as this has number of benefits.

Can an employee contribute more than 12% of basic salary towards EPF
Employees’ Provident Fund (EPF) is a retirement investment plan that every salaried individual opts for. Employee usually contributes 12% of their basic pay and employer contributes 13.61% towards the EPF.