Shivani (Learner) (1881 Points)
07 November 2016Dear Friends
While in case of a Recognised Provident Fund employee contribution is taxable but he gets deduction under section 80C.
My question is regarding employees contribution in UNRECOGNISED Provident Fund.
Will his contribution be taxable? I know he wont get deduction under section 80C but will his contribution to URPF be taxable under the head Salaries?
Regards
shivani
Payment at retirement of URPF – Employee’s own contribution is exempt but interest on his own contribution is taxable under the head “income from other sources”. Payment received towards the employer’s contribution and interest thereon is taxable under the head “Salaries”.
Employer’s Contribution and interest there on: Taxable as Salary Income.
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