Tax on Provident Fund

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<b>Employee’s Contribution to provident fund-</b>Clause 22, Part 1 of the Second Schedule- Exempt if received from a provident fund which the Provident Fund Act, 1925 applies.
Clause 23 Part 1 of the Second Schedule- Exempt if received from a Recognized Provident Fund.
Otherwise Taxable.


<b>Employer’s Contribution to provident fund-</b>Exempt up to lower of Rs. 100,000/- and 10% of salary, such that the amount dose not exceed employee’s contribution.(Annually), Clause (a) section 3, Part 1 of The Sixth Schedule, ITO.
Otherwise Taxable.


<b>Interest on Provident-</b>Exempt Up to 1/3 of salary.(Annually), Clause (b) section 3, Part 1 of The Sixth Schedule, ITO.