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
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