PF Contribution Reduced

by Vivek
(Mumbai)

Recently I have joined a new organization. Before joining it was agreed the PF contribution as per normal practice 12% on basic. But after my joining I came to know that for 12% contribution, basic is considered as Rs 6500 as ceiling amount. Now because of that my PF deduction is coming very less.

Company is adding the difference amount in Persoal Pay. Now my worry is as soon as it becomes part of salary, it will attract the tax.

When I had a discussion with HR, they are saying it will be one and the same as you can show the savings from this income in 1 Lakh slab and save the tax as PF contribution will be less.

I am not very clear about this. Can experts through some light on this ?

Thanks in advance

Vivek

Click here to post comments

Join in and write your own page! It's easy to do. How? Simply click here to return to Income Tax Questions.


Please subscribe to my monthly newsletter, Bookkeeping Basics E-zine. It tells you each month about the new information that I have added, including some great tips and advice from myself and other Bookkeeping Basics readers.


Enter Your E-mail Address
Enter Your First Name (optional)
Then

Don't worry — your e-mail address is totally secure.
I promise to use it only to send you Bookkeeping Basics E-Zine.


Like Bookkeeping-Basics.net?