Rebate u/s 80 C on PF

S. P. Dhammi (Querist) 03 July 2009 This query is : Resolved

Sir,

We are deducting provident fund @ 10% on basic pay of our employees and depositing the same with our share @ 10% in nationalised bank by opening separate accounts of employees under the account name "PF A/c of ....Employee Name....".

our query is

1. can we give rebate to our employees on their 10% PF share u/s 80C ?

2. What is the procedure to recognise the provident fund accounts maintained by the private organisations?

Thanks

S.P. Dhammi

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A V Vishal (Expert) 03 July 2009
Dear Dhammi,

Such Provident Fund are not recognized by the Commissioner of Income-tax. The employee and employer both contribute towards this fund. The employee's contribution to URPF is not treated as deductible expenditure. Further, such contribution doesnot qualify for deduction under 80 C.

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