PROVIDENT FUND-COMPARATIVE ANALYSIS
|Particulars||Eligibility||Employer’s contribution||Employee’s contribution||Income credited||Lump sum payment received at the time of retirement or termination of service or withdrawal|
|Public Provident Fund (PPF)||All Indian residents||Employer does not contribute||Eligible for deduction u/s 80C||Fully exempt||Exempt u/s 10(11).|
|Statutory Provident Fund (SPF)||Resident employees||Not taxable||Eligible for deduction u/s 80C||Fully exempt||Exempt u/s 10(11).|
|Recognized Provident Fund (RPF)||Resident Employees||Not taxable up to 12% of salary||Eligible for deduction u/s 80C||Exempt up to 8.8%||Exempt from tax u/s 10(12).
Note: Not taxable if employee retires after 5 years of service or inability to work otherwise treated as URPF
|Unrecognized Provident Fund (URPF)||Resident Employees||Not taxable||Not eligible for deduction u/s 80C||Not taxable at the time of credit.||· Employee’s contribution exempt from tax and interest thereon is taxable under the head “Income from other sources”
· Employer’s contribution and interest thereon is taxable as “Profits in lieu of salary” under the head “Income from salary”.