Hi, Everyone. Will our excess VPF contribution help us reduce the tax from the head salary?
For ex one person is contributing 1 lakh per month as vpf
1 lak x 12 = 12 lakhs .
The salary that they receive is 50 lakhs per annum.
From Hr/ finance from the company, calculate
Only 38 lakhs rights from head salary for tax?
Pls advice or they will calculate whole 50 lakhs for tax.
Even that 12 lakhs has 2.5 lakhs EPF and VPF deduction then it ll be around 9.5 lakhs excess contribution that will be taxed only for the interest isy understanding right.
Can someone clarify how it will be taken?
From India, Bengaluru
For ex one person is contributing 1 lakh per month as vpf
1 lak x 12 = 12 lakhs .
The salary that they receive is 50 lakhs per annum.
From Hr/ finance from the company, calculate
Only 38 lakhs rights from head salary for tax?
Pls advice or they will calculate whole 50 lakhs for tax.
Even that 12 lakhs has 2.5 lakhs EPF and VPF deduction then it ll be around 9.5 lakhs excess contribution that will be taxed only for the interest isy understanding right.
Can someone clarify how it will be taken?
From India, Bengaluru
Whatever be the contribution (including employee's contribution at higher rate) the total amount including other tax saving investments permitted u/s 80C of IT Act is Rs 1,50,000 only. Therefore, if you are considering PF as a tax saving investment your contribution should not exceed Rs 1.5 lakhs. Remember that Rs 1.5 shall cover other tax saving investments and payments like principal amount of housing loan, life insurance, fees paid for children education etc. But if you think PF as an investment, certainly, you can chose to pay higher contribution.
Other side of the story: The EPFO was an employee friendly organisation in the past. But in the current style they are working, it seems that they find some technical ground to deny the withdrawal of the sum invested by the members. If you go to the EPFO's office, you will not be permitted to contact the officer concerned. We have to wait like a beggar in the front office of the EPFO which is manned by class IV employees!!! Therefore, it may not be that easy for a member to get he amount back. We can't predict what will happen to our investment if this attitude is continued. All these came in just after the Supreme Court verdict came on the higher pension on higher contribution. Now the EPFO is in research to find out the way out of the obligations posed by the Court....!!
From India, Kannur
4293Other side of the story: The EPFO was an employee friendly organisation in the past. But in the current style they are working, it seems that they find some technical ground to deny the withdrawal of the sum invested by the members. If you go to the EPFO's office, you will not be permitted to contact the officer concerned. We have to wait like a beggar in the front office of the EPFO which is manned by class IV employees!!! Therefore, it may not be that easy for a member to get he amount back. We can't predict what will happen to our investment if this attitude is continued. All these came in just after the Supreme Court verdict came on the higher pension on higher contribution. Now the EPFO is in research to find out the way out of the obligations posed by the Court....!!
From India, Kannur
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals. CiteHR connects professionals facing similar challenges, leveraging a vast knowledge base (100K+ downloads, 150K+ discussions) and targeted emails to engage experts in solving issues.
ESI contribution rates lowering.pdf
SC Judgment-No obligation to excess contribution than Statutory Limit.docx