CAF-2 · Chapter 5 · Question 10 of 10
In the case of a Recognized Provident Fund, what is the exemption limit for the employer's contribution to the fund?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) C) Lower of Rs. 150,000 or 1/10th of (Basic Salary + Dearness Allowance).
Explanation
For a Recognized Provident Fund, the employer's yearly contribution is exempt up to Rs. 150,000 or 1/10th of (Basic Salary + Dearness Allowance), whichever is lower.
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