CURRENT AFFAIRS

Detailed explanation-1: -Contributions to the employees’ provident fund or the PF qualify for tax deduction under Section 800C of the Income Tax Act. If held till retirement, this contribution can be a good retirement corpus creator and one which is tax efficient, as the PF is totally tax exempt at the time of exit.

Detailed explanation-2: -If you are drawing a salary higher than Rs. 15, 000 per month, you are termed a non-eligible employee and it is not mandatory for you to become a member of the EPF, although you can still register with the consent of your employer and approval from the Assistant PF Commissioner.

Detailed explanation-3: -Section 10(11) and Section 10(12) fully exempted interest accrued on the contribution made by the employee to the ‘Recognized Provident Fund’ and ‘Statutory Provident Fund’. Interest accrued, during the previous year, under the ‘Recognized Provident Fund’ and ‘Statutory Provident Fund’ extends the exemption limit.

Detailed explanation-4: -Section 10(11): Exemption on Payment Made in Provident Fund and Sukanya Samriddhi Account. Any amount received in terms of contribution or interest from a provident fund account on retirement or termination of service is exempted.