Is the share paid by employer towards Provident fund be included in Employee's Salary for the purpose of Tax Calculation.
CA. Ashok shah
(CHARTERED ACCOUNTANT)
(333 Points)
Replied 04 February 2009
If employer’s contribution is upto 12% of salary and interest does not exceed notified rate of interest (At present 9.50% p.a.), it is not taxable.
However, the accumulated balance due and becoming payable to an employee participating in Recognised Provident Fund (RPF) is taxable u/s.17 under the head Income from Salary to the extent of Employers contribution and interest thereon, if i) he does not serve for continuous period of 5 years with the said employer or ii) termination of service is due to reasons beyond his control or iii) in case of employment with other employer, balance in RPF is transferred to RPF account maintained by his other employer.
GSTR 9 and 9C for FY 23-24 as amended by Notification 12/2024 dated 10th July 2024(with recording)
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