Please let me know if we are contributing to the Voluntary Provident Fund in total.
1) Do we get the income tax rebate?
2) Is it taxable?
3) What would be the percentage?
4) Is the company benefited in any way?
Regards,
Ravi
From India, Hyderabad
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1) Do we get the income tax rebate?
2) Is it taxable?
3) What would be the percentage?
4) Is the company benefited in any way?
Regards,
Ravi
From India, Hyderabad
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Hi all,
My question is, suppose an employee's basic salary is Rs. 6,500/- and a deduction of Rs. 780/- is made from his salary on one side. What will happen? What will be the contribution if his basic salary is increased to Rs. 7,000/-? Will his contribution continue, and if yes, on how much basic salary?
Thanks,
K.K
From India, Ghaziabad
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My question is, suppose an employee's basic salary is Rs. 6,500/- and a deduction of Rs. 780/- is made from his salary on one side. What will happen? What will be the contribution if his basic salary is increased to Rs. 7,000/-? Will his contribution continue, and if yes, on how much basic salary?
Thanks,
K.K
From India, Ghaziabad
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Hi, Mr. Ravi.
Yes, you can take the VPF amount as a rebate, and it is not taxable. You can contribute your VPF amount up to 88%. For example, if your basic is Rs. 6500, out of this amount, 12% will go to PF (Rs. 780), and the remaining Rs. 5720 can be contributed as VPF.
From India
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Yes, you can take the VPF amount as a rebate, and it is not taxable. You can contribute your VPF amount up to 88%. For example, if your basic is Rs. 6500, out of this amount, 12% will go to PF (Rs. 780), and the remaining Rs. 5720 can be contributed as VPF.
From India
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Hi,
Can anyone please send me some more information on VPF? How can a letter be drafted to get this done with my company? What are the benefits? I am aware that the lock-in period is till retirement in case of VPF. Is there anything else I need to know like opening the VPF account if an employee approaches me?
Thanks
From India, New Delhi
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Can anyone please send me some more information on VPF? How can a letter be drafted to get this done with my company? What are the benefits? I am aware that the lock-in period is till retirement in case of VPF. Is there anything else I need to know like opening the VPF account if an employee approaches me?
Thanks
From India, New Delhi
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Hello,
I am providing a link wherein more information about VPF is given. Maybe this can help everyone. I am confused as this is the first time I am learning that VPF account lock-in period is for a lifetime and apart from 12% of the basic, 88% goes to VPF. I believe both statements are incorrect. Please confirm because, according to me, an employee can choose the percentage on his own in multiples of 12%, and the maximum limit can be 96%. Please guide.
The link - [VPF or Voluntary Provident Fund: Special benefits for employees](http://www.dotcominfoway.com/blog/vpf-or-voluntary-provident-fund-special-benefits-for-employees)
From India, Ghaziabad
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11I am providing a link wherein more information about VPF is given. Maybe this can help everyone. I am confused as this is the first time I am learning that VPF account lock-in period is for a lifetime and apart from 12% of the basic, 88% goes to VPF. I believe both statements are incorrect. Please confirm because, according to me, an employee can choose the percentage on his own in multiples of 12%, and the maximum limit can be 96%. Please guide.
The link - [VPF or Voluntary Provident Fund: Special benefits for employees](http://www.dotcominfoway.com/blog/vpf-or-voluntary-provident-fund-special-benefits-for-employees)
From India, Ghaziabad
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Dear Ravi,
Greetings for the day.
Any contribution voluntarily towards EPFO is non-taxable. The percentage for contribution voluntarily should be up to 100% of the basic salary. Apart from the mandatory 12%, in the company balance sheet, if the voluntary contribution is marked, then it comes under expenditure, and the tax liability towards the company minimizes.
Thanks & Regards,
From,
Sumit Kumar Saxena
From India, Ghaziabad
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Greetings for the day.
Any contribution voluntarily towards EPFO is non-taxable. The percentage for contribution voluntarily should be up to 100% of the basic salary. Apart from the mandatory 12%, in the company balance sheet, if the voluntary contribution is marked, then it comes under expenditure, and the tax liability towards the company minimizes.
Thanks & Regards,
From,
Sumit Kumar Saxena
From India, Ghaziabad
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Insurance Linked Voluntary Payment of Income Tax Act 2009.doc
Provident Fund - Excluded Employee - Definition.pdf