In case of a recognized provident fund (PF), if the employer contributes 12 per cent of basic salary, is it tax-free for the employee?
- Dinesh Krishnan, Chennai
Yes, the employer’s contribution to a recognised PF of up to 12 per cent of specified salary is exempt from tax under Schedule IV Part A of the Income Tax Act, 1961. There is no separate column to disclose the amount in the Form 16.
