TaxTMI 
TaxTMI 
what is the rate of PF deduction. Is is the deduction on Basic salary. Can the employer pay any other amounts huge fulfilling basic salary as per the norms
Rate of PF deduction - Deduction on basic salary
29 Sep 2009 
2 Replies 
1827 Views Asked by
Rate of PF deduction: clarification sought on whether PF is calculated on basic salary under labour or tax law.
Query asks whether the rate of Provident Fund deduction applies to basic salary and whether an employer may restructure pay to alter the basic-salary base for PF. Replies seek clarification of the applicable legal regime-labour law versus tax law-and request full factual detail so compliance requirements and the permissibility of salary-structuring can be properly assessed. (AI Summary)
Query asks whether the rate of Provident Fund deduction applies to basic salary and whether an employer may restructure pay to alter the basic-salary base for PF. Replies seek clarification of the applicable legal regime-labour law versus tax law-and request full factual detail so compliance requirements and the permissibility of salary-structuring can be properly assessed. (AI Summary)