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Tax Deduction on EPF Contribution

Your EPF contribution is eligible for deduction under Section 80C, but not your employer's contribution

Every month Rs 5000 is deducted towards EPF from my salary. Of this, ₹2500 is the employer's contribution. I would like to know whether the employer's contribution is covered under 80C deductions for income tax. My employer says that only employee contributions can be claimed under 80C. Is this true?
- Narendar Rawal

 

Your employer is right. Your contribution towards EPF will be eligible for deduction under Section 80C of Income Tax Act. The employer's contribution is also exempt form tax. But you cannot claim tax deduction on the employers contribution under section 80C.