Tax on PF with new bugget 2021-22





Who contribute over 20833 a month  to PF Will be taxed encluding valuntory PF.

including taxing interest earned by provident fund contributions above Rs 2.5 lakh a year at normal rates. This will only apply to the employee's contribution and not that of the employer.

"In order to rationalise tax exemption for the income earned by high income employees, it is proposed to restrict tax exemption for the interest income earned on the employees' contribution to various provident funds to the annual contribution of Rs 2.5 lakh. This restriction shall be applicable only for the contribution made on or after 01.04.2021," said the Finance Minister.

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