Hi all, Can anyone explain the new Income Tax provision on PF contributions, which has been announced in the recent Budget 2021?
1. Whether interest earned on PF contributions (both employee & employer or employee only) of more than Rs.2.50 lakhs is taxable ? OR
2. Interest earned more than Rs.2.50 lakhs is taxable?

From India, Madras

The Government seeing the gradual increase of Crorepati PF Account holders has made a pathbreaking action and has proposed to tax the employees’ provident fund (EPF), albeit only the interest income on contributions exceeding Rs 2.5 lakh in a year. In the recent Budget proposals, the government has proposed that tax exemption will not be available on interest income for the year on all contributions to provident funds exceeding Rs 2.5 lakh. But this will not affect their existing corpus or the aggregate annual interest on that.
From India, Mumbai

If you are knowledgeable about any fact, resource or experience related to this topic - please add your views using the reply box below. For articles and copyrighted material please only cite the original source link. Each contribution will make this page a resource useful for everyone.

Please Login To Add Reply →

About Us Advertise Contact Us Testimonials
Privacy Policy Disclaimer Terms Of Service

All rights reserved @ 2021 CiteHR™

All Material Copyright And Trademarks Posted Held By Respective Owners.
Panel Selection For Threads Are Automated - Members Notified Via CiteMailer Server