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Direct Taxation
How these points will be considered as income deemed to be received. Contribution to PF in excess of 12% of salary and interest in excess of 9.5% Sec 80ccd Transfer from URF to RF
Answers (10)
When employer is contributing to URF, its not taxable in hands of employee. When employee receives it is taxable. When employee receives from RF, it is not taxable. Now when amount is transferred to RF from URF, and when employee receives from RF, it is not taxable. To plug this loophole, when amount is transferred from URF to RF, it is deemed to be received by employee and taxable. It is explained in detail in classes.