01-06-2011, 03:31 AM
However, The law restricts the Maximum contribution by employer to be not more that 1/10th of the Salary (10%). Amounts contributed in excess of this limit will be included in his Income, and therefore subject to Tax. Since Employer and employees contribution must be equal, therefore the Maximum untaxed limit is 10@ each
However, if the employee's and employer agree to pay tax on the additional PF contribution by employer then they may choose whatever limit they want.
Hope This solved your concern
(ReferenceIncome Tax Ordinance 2001, Schedule 6, Para 3
Income Tax Rules 2002, Chapter XV, Para 97)
If you have any Provident Fund Query, Please ask, I'll be glad to reply
However, if the employee's and employer agree to pay tax on the additional PF contribution by employer then they may choose whatever limit they want.
Hope This solved your concern
(ReferenceIncome Tax Ordinance 2001, Schedule 6, Para 3
Income Tax Rules 2002, Chapter XV, Para 97)
If you have any Provident Fund Query, Please ask, I'll be glad to reply
