Hi Fishes

My employer is not considering employer's PF contribution in my fixed component and employer's PF in my case is 12% of Basic instead of minimum required. I feel that this is making my fixed component to be liable to a higher tax.

I feel that I would have got the same in hand even if my fixed is 2 lakhs lower and employer's PF is part of my fixed as even that portion will be excluded out of tax calc.

Is my thought process wrong? If not, how can I improve my in-hand reducing my tax?

likefunny
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Isn’t it a benefit that the employer PF is not included in the ctc ?

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No no, I think I realised my mistake in my calc. I am happy that I was wrong lol

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I don't feel so when I make in hand calc. While total PF contribution remains same (either the ways) the in-hand is gonna be lower right as employer's PF is not considered for IT computations. Am I wrong there?

Wow!!! You are sooo wrong!! Employer's PF should not be considered in fixed. Its totally non taxable and is treated as direct savings, i am not even understanding the confusion. With 2 lakh less fixed you would have got same in hand, but PF would have been lower, I am not understanding this stupid thought, please elaborate.

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