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EPF Benefit for taxation

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ShriK1931

Hey all -

I understand that for a foreigner the employer need not pay EPF.

But, tax authorities allow an exemption of upto 6K. That means employees contribution is 6K pa, the taxable income is reduced to that extent.

So if I choose to contribute to EPF voluntarily - do I still get that benefit?

EPFs are earning a dividend of 5 to 6 percent per annum, plus one gets tax relief. Looks like a good tax saving tool!

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Gravitas

Problem is your EPF Malaysia contribution (no connection to India) would be from your after tax income.

It is unclear if self-contributions get the benefits of income from EPF e.g. around 6% per annum. That is what you need to clarify,

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