Y GOPI REDDY
(GREAT POLITICAL LEADER)
(378 Points)
Replied 24 July 2019
Suresh Thiyagarajan
(Student)
(3986 Points)
Replied 24 July 2019
1. Sec 80C allows to claim deductions to an employee who made a contribution to recognized provident fund (PF)
2. Simple logic underlying the above deduction is contribution even though remitted by your employer is from your own salary hence deduction is allowed u/s 80C at the time of computation of total income.
3. Whereas on the other hand, it is a contribution made by the employer to a recognized PF and the same shall not be allowed as deduction since it not out of employees pocket.
4. It just forms part of your salary subject to a limit of 12% and over and above 12% will be taxable in employee's hands.
5. In a nutshell, employers contribution to EPF will not be allowed as deduction u/s 80C.
Please correct me if the above interpretation has an alternative view.
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