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Provident fund

unnati sharma (39 Points)

12 December 2017

whether employer's contribution to provident fund is a taxable income for his employee???

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5 Replies

RAJA P M ("Do the Right Thing...!!!") (127977 Points)
Replied 12 December 2017

No....
it's not his / her income.

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sweetyjain (assistant) (227 Points)
Replied 12 December 2017

employer contribution towards pf is allowable expense to entity and not consider in the hand of employee , so it is not taxable in the hand of employee

Pardeep Garg (CA-Final Student) (801 Points)
Replied 12 December 2017

I agree with Sweety Jain.
➡️Cont. in SPF is fully exempt.
➡️Cont. in Recognised PF is exempt upto 12% of salary (i.e. basic +DA(part of retirement benefits)+com. as fixed %on turnover)
➡️Cont. in Unrecognised PF is not exempt but also not taxable in the year of cont. but is taxable in the year when PF amount is matured.