EPF with PPF clarification for salaried person

Question

Suppose a non-government salaried person has an EPF account.

Employee Contribution EPF amount 4500 Rs and Employer Contribution EPF amount 4500 Rs

What will be the 80C and 80CCC deduction benefit calculations from PF(when the employee has no additional PPF)?

Is it 4500 X 12 = 54,000 ?

Or is it a calculation like below?

4500 [Employee Contribution] + 4500 [Employer Contribution] = 9000

9000 X 12 = 1,08,000

As 80C, the 80CCC Maximum Deduction is 150,000.00. So for the above example, if the same employee wants to get a full Rs 150,000.00 deduction benefit, then how much does he need to invest in PPF in the above scenario?

Answer 1

Employer contribution is also part of your salary and will be considered under 80C deduction. So your total contribution to 80C becomes 1,08,000.

Since total considered amount under 80C is 1,50,000 you can contribute 42,000 more towards it. Actually, you can contribute any amount, its just they will consider 1,50,000 only, for deduction.

Answer 2

Check this link : https://www.paisabazaar.com/tax/section-80c/

Only Employees contribution is considered in 80C.

"Employees’ Provident Fund (EPF): Employees’ contribution to the EPF account is eligible for deduction under Section 80C. Employer’s contribution is also tax free but it is not eligible for deduction under Section 80C."