Gyana Mishra (Service) 16 June 2009
Hi, Can someone clarify me whether PF contribution of Employees share is a rebatable item or non taxable Item.
I mean, is it considered as a part of 80C once the tax on total salary is calculated or the portion of Employees PF which is part of Gross Salary should be taken out before calculating Tax on Salary income.
A V Vishal (Advocate) 16 June 2009
The amount of employees share is included in the gross pay, this portion of the employees share of P F is allowed as a deduction u/s. 80C and only thereafter the tax liability is computed
Chandargi B B (CA) 21 June 2009
Hi,while calculating the tax the gross salray is taken into consideration and then all the eligible deuctions are deducted from salary head and afterwards 80C deductions are made for savings subject Rs.1 lakh.
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