Can we claim both employee and employer contribution from PF?

In this scheme, both you and your employer make contributions towards your EPF. You can claim the entire amount at the time of your retirement or two months after changing your job. You and your employer need to transfer 10\% or 12\% of your basic salary to contribute towards EPF.

Does 80C deduction include employer PF?

4) Employees’ Provident Fund (EPF): Employees’ contribution to the EPF account is eligible for deduction under Section 80C. Employer’s contribution is also tax free but it is not eligible for deduction under Section 80C. Tax on Returns: EPF interest rate is tax free.

Is it correct that both employer and employee component should be deducted from my CTC?

Most employers contribute 12\% (called PF) of basic salary every month to employee’s Provident fund account, shown in CTC. An employee also contributes 12\% (called VPF). Employer PF is part of CTC not shown on Salary Slip. It is NOT counted as part of your earnings and hence not taxed.

Is employer PF contribution part of taxable income?

Introduction. The earnings from the Provident Fund have remained tax-free for many years. Accordingly, employer’s contribution to Provident Fund, National Pension Scheme (NPS) and Superannuation Fund in excess of Rs. 7.5 lakh will be taxable as perquisites in the hands of the employee.

What is employer and employee contribution for PF?

The contributions payable by the employer and the employee under the scheme are 12\% of PF wages. From the employer’s share of contribution, 8.33\% is contributed towards the Employees’ Pension Scheme and the remaining 3.67\% is contributed to the EPF Scheme.

Is employee contribution to PF mandatory?

If you are a salaried employee with a (basic + dearness allowance) less than Rs. 15,000 per month, it is mandatory for you to be opened an EPF account by your employer.

Is PF included in tax exemption?

The USP of the Employees’ Provident Fund (EPF), apart from safety and high returns (compared to other fixed income options such as PPF, FD), is that it has exempt-exempt-exempt tax status. That is, it is exempted from tax at the time of maturity.

Which part of PF is taxable?

As per the notification, issued on August 31, contributions above ₹2.5 lakh in the Employee Provident Fund (EPF) per year will be taxed. In cases where there is no employer contribution in the EPF account, the threshold will be ₹5 lakh a year.

Does the amount deducted from PF come under 80C?

The details of pf deducted and considered for tax calculation is given in annexure of form16. But yes all this amount comes under 80C and can cover up limit if your basic is high. , VAT Addl. Commissioner-Retd.

Where is the PF amount deposited in employee a/C?

View Answer. Normally whole share of Employee and Employer PF (EPF, EPS and Difference) is deposited with PF Department in Employee A/c. Whole amount is recovered on retirement of Employee or as pension. To cover salary and office expenses of PF Department, PF Admin Charges are also recovered from the employer.

Can an employee contribute more than 12\% of salary for EFP?

For EFP, both the employee and the employer contributes equal amount, which is 12\% of the salary of the employee. However, the employee contributions may differ. Employees can contribute more than 12\% of their salary voluntarily. However, in such a case, the employer is not bound to match the extra contribution of the employee. Yes.

What is the deduction for employee contribution under section 80c/80cce?

The employee contribution is given as a deduction under section 80CCD (1) which is within that Rs. 1.5lac Sec. 80C/80CCE limit (like how u get PF employee contribution as deduction). If you have contributed more than the limit, then the excess paid (upto Rs. 50,000) can be claimed as a deduction under section 80CCD (1B) which is in… (more)