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Employers contribution to EPF

Kk Nair (172 Points)

25 December 2018

Is Employer's contribution towards EPF taxable?

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Deepak Gupta (CA Student) (15922 Points)
Replied 25 December 2018

Statutory provident fund:
Fully Exempt

Recognized provident fund:
Exempt only to the extent of 12% of salary

Unrecognized provident fund:
Fully Exempt

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MOHAMMED IMRAN (1020 Points)
Replied 25 December 2018

if it is RPF than in excess of 12%of salary is taxable - interest in excess of 9.5% is taxable

if it is statutory PF then employers contribution and internet thereon is fully EXEMPTED

if it is unrecognized PF NOT TAXABLE YEARLY
AMOUNT RECEIVED ON RETIREMENT, etc. employers contribution & interest thereon is taxable as salary .employee 's contribution not taxable. interest on employee's contribution is taxable as income from other sources

salary = basic + DA if it is forming part of salary for all retirement benefits + commission on turnover

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