Query on Provident Fund Deduction in Income Tax.

193°
Deal Cadet
niom02
Hi All,


Today while checking the tax section in my company website, I see that the Provident Fund deducted from Salary is considered in 80C deduction.

I was in the assumption that 80C 1.5L is seperate and PF deductions are seperate while claiming deductions in ITR.


Please correct me if I am wrong.
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Deal Cadet Deal Cadet
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Provident Fund deducted is indeed part of Section 80C

Tax Wizard Tax Wizard
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All answers are correct. Its part of 80C
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Deal Subedar Deal Subedar
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It is part of 80C. If less you can add VPF contribution and make it 1.5L too.

Deal Subedar Deal Subedar
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PF deduction in salary slip comes under 80C - 1.5L deduction only, say you have PF deduction as 3k per month then it will 36k - 1.5L = 114k balance left for 80C deduction..

Finance Mentor Finance Mentor
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All provident/pension funds come under 80C limit.

Deal Cadet Deal Cadet
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Also note interest earned on pf + vpf contributions exceeding 2.5 lakh in year is taxable as well

Finance Mentor Finance Mentor
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Lastly to get these tax benefits, you will need to be on Old Tax Regime.

Most of us switched to new regime due to new regime being more profitable even after including EPF / tax saving investments / mediclaim etc.

Specialist Specialist
Moderator
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I wonder if   there  is any  particular  class of tax payees for whom
the old regime is beneficial?
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Comrade Comrade
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Employer contribution is not added to 80C. Only your contribution will be added to 80C.

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