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Can Gratuity be taxed?
Yes. Gratuityup to a maximum of Rs.3.5 lacs is tax free. Any amount above this is taxable However if an employee is eligible for a Gratuity amount of Rs. 2.9 lacs as per the Gratuity formula, but the employer decides to pay him/her Rs.3.25 lacs the amount above the actual eligible amount i.e., the amount above Rs.2.9 lacs is taxable.
What is a provident Fund?
What is the Employee Provident Fund (EPF)?The EPF is created by the Employees Provident Fund Organization (EPFO) of India, a statutory body of the Indian Government under the Labor and Employment Ministry. It states that an organization having 20 or more permanent employees on its payroll, should register with the EPFO.A Provident Fund is a fund that is created, through contributions, to provide financial support to individuals in their future (Specifically for post-retirement). The Employee Provident Fund is just such a fund. Contributions are made on a monthly basis, by both employees and employers, thereby encouraging employees to save a portion of their salary each month. Investments made by millions of employees across India are pooled together and invested by a trust.The EPF is a tax free investment instrument for the salaried class. Interest earned on it is tax free, and returns are also not taxed. You also get a deduction under Section 80C for contributions made towards your EPF.
What is provident fund in salary?
The Government wants to tell us the importance of routine saving over a long time. This lumpsum given during retirement can be used by the employee to continue his life without being financially dependent on anyone and stand on his own legs...
What is contributory provident fund?
The EPF is created by the Employees Provident Fund Organization (EPFO) of India, a statutory body of the Indian Government under the Labor and Employment Ministry. It states that an organization having 20 or more permanent employees on its payroll, should register with the EPFO. A Provident Fund is a fund that is created, through contributions, to provide financial support to individuals in their future (Specifically for post-retirement). The Employee Provident Fund is just such a fund. Contributions are made on a monthly basis, by both employees and employers, thereby encouraging employees to save a portion of their salary each month. Investments made by millions of employees across India are pooled together and invested by a trust. The EPF is a tax free investment instrument for the salaried class. Interest earned on it is tax free, and returns are also not taxed. You also get a deduction under Section 80C for contributions made towards your EPF.
What are the differences between pre-tax and Roth contributions in retirement accounts?
The main difference between pre-tax and Roth contributions in retirement accounts is how they are taxed. Pre-tax contributions are made with money that has not been taxed yet, so you will pay taxes on the money when you withdraw it in retirement. Roth contributions are made with money that has already been taxed, so you won't have to pay taxes on the money when you withdraw it in retirement.
What is the difference between pre-tax and Roth contributions in retirement savings accounts?
The main difference between pre-tax and Roth contributions in retirement savings accounts is how they are taxed. Pre-tax contributions are made with money that has not been taxed yet, so you will pay taxes on the money when you withdraw it in retirement. Roth contributions are made with money that has already been taxed, so you won't have to pay taxes on the money when you withdraw it in retirement.
What is the difference between pre-tax contributions and Roth contributions when it comes to retirement savings?
The main difference between pre-tax contributions and Roth contributions for retirement savings is how they are taxed. Pre-tax contributions are made with money that has not been taxed yet, so you will pay taxes on the money when you withdraw it in retirement. Roth contributions are made with money that has already been taxed, so you won't have to pay taxes on the money when you withdraw it in retirement.
Can an employee's excess vacation time expire?
No, an employee's vacation is taxed just like earning and therefore, it can not expired until it is used or paid to the employee.
What are the differences between pretax contributions and Roth contributions in terms of retirement savings?
Pretax contributions are made with money that has not been taxed yet, so you pay taxes on the money when you withdraw it in retirement. Roth contributions are made with money that has already been taxed, so you don't pay taxes on the money when you withdraw it in retirement.
Will you be taxed on withdrawl from your 401k at age 65?
Yes, withdrawals from a 401k are taxed as ordinary income. The tax treatment will depend on your total income in retirement and current tax laws.
Is there a way to make a rabbi trust qualified so employer captures the expense of funding and the recipient is not currently taxed?
Rabbi TrustAn irrevocable trust that functions as a type of retirement plan or deferred compensation arrangement that offers a limited amount of security to the deferring employee.
What is the difference between pre-tax contributions and Roth contributions in terms of retirement savings?
Pre-tax contributions are made with money that has not been taxed yet, so you don't pay taxes on the amount you contribute until you withdraw it in retirement. Roth contributions are made with money that has already been taxed, so you won't pay taxes on the withdrawals in retirement.
