Rebate u/s 80 C on PF
S. P. Dhammi
(Querist) 03 July 2009
This query is : Resolved
Sir,
We are deducting provident fund @ 10% on basic pay of our employees and depositing the same with our share @ 10% in nationalised bank by opening separate accounts of employees under the account name "PF A/c of ....Employee Name....".
our query is
1. can we give rebate to our employees on their 10% PF share u/s 80C ?
2. What is the procedure to recognise the provident fund accounts maintained by the private organisations?
Thanks
S.P. Dhammi
A V Vishal
(Expert) 03 July 2009
Dear Dhammi,
Such Provident Fund are not recognized by the Commissioner of Income-tax. The employee and employer both contribute towards this fund. The employee's contribution to URPF is not treated as deductible expenditure. Further, such contribution doesnot qualify for deduction under 80 C.
