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”. |
Juhi Ganatra
(Artical Assistant)
Nagpur
