EPF taxation!!!

POSTED BY Brundaban ON May 8, 2012 8:13 pm COMMENTS (4)

Dear All,
I’ve a Q regarding EPF.As 12% of basic is deposited by employer and same 12% from employee salary.
So my query is if one person’s 80c component is complted by other means not including epf, then how tax will be calculated.

Will employer contribution of epf will be deducted from total taxable income after deducting sec 80 c amount of 1 lakh or it’s included within entire 80c of 1 lakh.
Also what about vpf,will it be taxable and fall within 80c 1 lakh bracket???

4 replies on this article “EPF taxation!!!”

  1. Dear Brundaban, the over all limit of 80C is 1L Rs. If in your case, it’s already reached by other means say children tuition fee, home loan principal repayment, life ins. prem…… the EPF contribution of 12% deducted from your salary ‘ll not provide any help to save tax.

    Employer’s 12% contribution is out of question for your own income tax calculation. Again VPF is available within that 1L Rs. limit only. so no matter how much you are investing through VPF, tax saving ‘ll be limited to that original limit of 1L Rs. of section 80C already achieved from other instruments.

    Thanks

    Ashal

  2. Brundaban says:

    Thanks to both of you for quick and needy reply.

  3. VPF and Employee contribution to PF fall under 80c. Employer contribution provides no tax benefits to employee.

    You need to declare the rest of the 80c investments to your employer to get right tax deductions.

  4. Note

    Employer contribution has no relation with 80C .. Only employee contribution upto 12% of his basic is considered as part of 80C

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