Income tax clarification required.

[A.Sambathkumar]

Good morning everybody,

 

I have a doubt on Income tax calculation. I would like to know, as EPF contribution from the employee is tax exempted, whether EPF contribution from employer is also tax exempted under 80C. (Within Rs. 1,00,000/-) limit.

 

Example: If I contribute Rs. 1000/- every month. I.e., Rs.12000 pa. Equally my employer also contributes Rs.12000 pa. My question is whether Rs.24000 is eligible for deduction under 80C. or only Rs.12000/- is eligible.

 

Please clarify.

 

Thanks,

A. Sambathkumar.
 

[Priyesh Shah]

Hi A. Sambathkumar,

Only Employee's contribution is eligible for 80C i.eRs.12000 p.a. in
your example.
Employer's contribution upto 12% of Salary (Basic + D.A. + Fixed %
Comm.) will be exempt from tax and the balance will be included in
your Gross Salary.

Warm Regards,
Priyesh Shah

On Oct 22, 5:56 am, "A.Sambathkumar" <sambath.spec...@gmail.com>
wrote:

[naveen fernandes]

Dear Sambathkumar,

The EPF is lovely way to make your 80C stretch beyond Rs. 1 lakh. The
employees contribution is part of 80C, the employers is not, even
while it is tax free!

Combined with a tax free income, this is even better as an investment
than the PPF.

Naveen Fernandes

[sambathkumar. A]

Thank you very much for your clarification. Now I can plan for
utilizing full benefit of 80C.

> > A. Sambathkumar.- Hide quoted text -
>
> - Show quoted text -

[sambathkumar. A]

Dear Mr. Naveen Fernandes,

THank you. But i could get your point. How can we stretch and save
more than Rs.1 lakh in 80C. Pl clarify.

Best Regards,
A. Sambathkumar.