Are the following statements true or false? Give reasons. An amount of Rs. 2,500 contributed by Harish (employee of M/s Nanda Enterprises) towards his own provident fund is a part of compensation of employees.
A
True
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B
False
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Solution
The correct option is B False Compensation of employees only includes those contribution towards provident fund which are contributed by the employers of the business and not by the employees. Therefore, contribution by Harish will not be included in the provident fund.