Employer's contribution to Recognized Provident Fund (RPF) in excess of 12% of salary income of an employee shall be treated as:

CS Executive · Tax Laws and Practice · PYQS · June 2019
Employer's contribution to Recognized Provident Fund (RPF) in excess of 12% of salary income of an employee shall be treated as:
(A) Taxable income from salaries
(B) Deemed income from salaries
(C) Exempted income
(D) Income of other sources

Answer & Explanation:

Correct Answer: Option (A)

Official answer key: (A), (B). Official source note: Option B is correct. However, option A also seems ok as employer contribution in excess of 12% is deemed income as salary income and hence taxable under the head salary income.

Topics: Income Tax Act, 1961

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