Hi dear HR professionals ,
I have some doubts regarding PF and Gratuity. Like
1. What is the the reason which we have the ceiling of Rs.350000 for gratuity ?
If it exceeds what may happen?
2. Is there any ceiling for PF amount to avail Income tax rebate.
Normally we do have tax rebate for PF amount. if there is any ceiling for the same, kindly assist me.
I am looking forward for your honest reply.
Warm Regards,
kannan
From India, Madras
1I have some doubts regarding PF and Gratuity. Like
1. What is the the reason which we have the ceiling of Rs.350000 for gratuity ?
If it exceeds what may happen?
2. Is there any ceiling for PF amount to avail Income tax rebate.
Normally we do have tax rebate for PF amount. if there is any ceiling for the same, kindly assist me.
I am looking forward for your honest reply.
Warm Regards,
kannan
From India, Madras
Dear Kannan,
Every amount contributed towards the Employee's Provident Fund (EPF) from the employee's and employer's end, is exempted under the Income Tax. Also there is no tax on the Interest received on the PF amount.
The Employer is still bound to deduct PF on the salaries of the employees who are drawing salaries less than Rs. 6500 a month.
Regarding gratuity issue, I shall reply you shortly.
warm regards,
Umesh Chaudhary
(welcomeumesh@yahoo.com)
From India, Delhi
Every amount contributed towards the Employee's Provident Fund (EPF) from the employee's and employer's end, is exempted under the Income Tax. Also there is no tax on the Interest received on the PF amount.
The Employer is still bound to deduct PF on the salaries of the employees who are drawing salaries less than Rs. 6500 a month.
Regarding gratuity issue, I shall reply you shortly.
warm regards,
Umesh Chaudhary
(welcomeumesh@yahoo.com)
From India, Delhi
Hi Kannan,
We have had few discussions on the same topic Gratuity, for your reference i have attached you the Link of that you can go through that and let me know was it useful for you............
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With respect to the PF clarification i will agree with Umesh and just like to add one more point that employee drawing salary more than Rs. 6500 can also have PF deducted provided he/she agree for PF amount to be deducted, i mean employer is not complied by the law until and unless the employee choices on his own.
Other members correct me if i am wrong...............
Regards
Amith R.
From India, Bangalore
We have had few discussions on the same topic Gratuity, for your reference i have attached you the Link of that you can go through that and let me know was it useful for you............
<link outdated-removed>
<link outdated-removed>
With respect to the PF clarification i will agree with Umesh and just like to add one more point that employee drawing salary more than Rs. 6500 can also have PF deducted provided he/she agree for PF amount to be deducted, i mean employer is not complied by the law until and unless the employee choices on his own.
Other members correct me if i am wrong...............
Regards
Amith R.
From India, Bangalore
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