Under default tax regime Employee's contribution to RPF is not allowed as deduction. But in illustration 24 pg 3.103 didn't include such contribution. Why?

Vignesh · 18 Oct 2024

Under default regime : Deduction on Employee's contribution to RPF is not available. Under optional regime, deduction is available. Why Employee's contribution to RPF is not included as an income under the head salaries? Because it is not an income. It is a contribution made out of income already earned. So in above illustration it is not included. Additional points: 1. However, if the contribution is made by employer to employee's fund, then that's a perk, hence to be included as income for employee. 2. Also, the interest earned from that RPF will be included as taxable income 3. Employer's contribution to RPF and interest accrued thereon is not taxable income case of government employees. Hope I clarified. If you have further doubts, reply me. Note: Employer's