Particulars

Statutory P.F

Recognized P.F.

Unrecognized P.F.

Public provident fund

Employer’s contribution to P.F.

Not treated as ‘Income’ of the year in which contribution is made

Not treated as income up to 12 per cent of salary excess of employers contribution over 12 per cent of salary is taxable

Not treated as income of the year in which contribution is made

Employer does not contribute

Deduction under section 80C on employee’s contribution

Available

Available

Available

Available

Interest credited to P.F.

Not treated as ‘Income’ of the year in which interest is credited

Not treated as ‘Income’ if rate of interest (i.e. 9.5 per cent), excess of interest over the notified rate is, however, taxable

Not treated as ‘Income’ of the year in which interest is credited

Exempt from tax

Lump sum payment at the time of retirement or termination of service

Exempt from tax

Exempt from tax in some cases. When not exempt P.F. will be treated as an unrecognized fund from the beginning.

Not treated as ‘Income’ of the year in which contribution is made

Exempt from tax