Page 4 - P6 Slide Taxation - Lecture Day 7 - Various Topics
P. 4

The way life goes….

                                           Work                                                      Retirement






       Provides fro retirement: Make contributions to:
       - PF


       - PrF             Compulsory ito salary package
       - RAF      → Employee acquires it from insurance co




       Who makes the monthly contributions?

       If the employer makes

       contributions:From1/3/2016                                                                      Employer gets s 11(ℓ)

       - PF        → NEW: fringe benefit.                                                               deduction

       - PrF → NEW: fringe benefit.

       - RAF → fringe benefit (par 2(h) 7 Schedule
                                                                  th
         AND Chpt 11.4.17)
       Deduction in the employee’s tax calculation?

       Before 1/3/2016                                                                                      NEW: From 1/3/2016

       PF → s 11(k) for contributions paid by employee                                                      all contributions

       PrF → No deduction available [s 23(m)]                                                               deductible ito s11(k)

       RAF → s 11(n) for contributions paid by employee

       Plus:        contributions made by employer if it was

       taxed in the hands of the employee.
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