Can Employer Avail Tax Exemption Against The EPF Contribution

Dear All, Employer contributes 12% of Basic + DA to EPF Fund. In connection to this I have following queries: –

• Can employer file for the Tax Exemption for the contribution made by him towards the EPF?
• If yes, then is there any limit of it?

dsv

The employer will be taxed on the net profit and the net profit is arrived at after taking in to account the expenditure including the contributions paid towards EPF and ESI. As such there is no need of any separate claiming for exemption. The contributions made by employer towards EPF will be allowed as expenditure for the purpose of determining his tax liability. Regards, Madhu.T.K