The new financial year wasn’t merely a change of year of a date, but it brought together a number of financial changes with it that every taxpayer must be aware of. From April 1, the interest on provident fund (PF) contributions of employees across India under a specific bracket will be taxed.
The EPF contributions above Rs 2.5 lakh annually will be taxed by the Centre. So, here are a few things to know about the new PF tax rule:
For contributions upto Rs 2.5 lakh each year, the interest credited to the provident fund account of an employee will be tax-free. However, any interest on an employee’s contribution of over the same amount will be taxed in the hands of the employee year after year.
The EPF contributions above Rs 2.5 lakh annually will be taxed by the Centre. So, here are a few things to know about the new PF tax rule:
For contributions upto Rs 2.5 lakh each year, the interest credited to the provident fund account of an employee will be tax-free. However, any interest on an employee’s contribution of over the same amount will be taxed in the hands of the employee year after year.
