07-21-2011, 05:16 PM
We are going to start employee provident fund from next month. I have few confusions that I hope someone will clearify here.
1- do the contributions made by employer are treated as a part of employee's salary? if yes then do we need to deduct tax at source on this amount?
For example
If an employee's monthly gross salary is Rs. 43000 and he makes contribution of 10 % of his gross salary i-e Rs. 4300 and employer contributes same amount Rs. 4300 . Now the question is how to deduct tax at source on employee's salary? on Rs. 43000 or on Rs. 43000 + Employer's contribution?
2- If we donot deduct tax at source on employer's contribution then when and how do we deduct tax and at what rate?
3- How to get EPF approved (Procedure)? what is the benefit of getting it approved? and what if we dont get it approved?
Please help!!!!!!
