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jitendra (Assistant Engineer)     26 September 2012

Company 50% share in dcps counted in my gross salary

Dear sir,

I m doing job in govt company and my total gross earning during the year 2011-12 is 435723/-. As i appointed in year 2007, so we have given penson scheme(Defined contributory Pension Sch.) in which 50% share by me and 50% is company share(in a given financial yr 2011-12 i deposited 41216/- and company is also deposited same amount in pension account). As i told u that my total gross income as per pay slip is 435723/- and i have to pay income tax on the above amount but my RAO(regional a/c officer) gave me form 17 in that form my gross income shows is 476939/-, it means the amt added by company in pension scheme is also included in my gross income. It means that i have to pay income tax on the amount  which i do not got. plz advice me i have to pay income tax on 435723/- or 476939/-. plz give legal advice



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 5 Replies

R RAJAGOPALAN (ADVOCATE)     26 September 2012

 

As per the data, it appears that your Salary is to be computed as under:

Gross Salary as per Pay Slip:------------------------------------------ ------------- Rs 4,35,723

Add: Amt deposited by the employer into the Pension Scheme in your name: 41,216

Gross Salary:-----------------------------------------------------------------------------       4,76,939

less: Deduction under S. 80CCD(1): (being below10% of the salary): 41,216

Deduction under S 80CCD (2):(being below 10% of the salary):           41,216 82,432

Taxable income from salary:---------------------------------------------------------------3,94,507

 

 

 

 

 

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jitendra (Assistant Engineer)     29 September 2012

thank u sir for ur reply.

Sir, i want to know that, is this correct rule to add company share in my gross salary and then computed for income tax?

Before 2 years back, RAO gave me form 17 as per my pay slip(company share was not included in my gross salary) and i have paid income tax as the gross salary as per pay slip, but what happened now?

R RAJAGOPALAN (ADVOCATE)     29 September 2012

What was the amount of the Employer's Contribution 2 years back? 

R RAJAGOPALAN (ADVOCATE)     05 October 2012

S.17(1)(viii) of the Income Tax Act, as amended by the FA 2007 wef 1-4-2004, provides that the contribution made by the emp[loyer , to the Pension Scheme A/c of the employee, will be included in his salary.

jitendra (Assistant Engineer)     15 October 2012

thank you sir for ur reply now i am satisfied.

Before today i dont know tht there is a provision of employer contr. included in gross salary. OK verry-very thank u sir.


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