• National
  • World
  • Auto
  • Sports
  • Business
  • Health
  • Entertainment
  • Tech
  • Career
  • More
    • Politics
    • Food
    • Insurance
    • Travel
    • Personal Finance
    • Market
    • Crypto
    • Lifestyle
What's Hot

Couple was dancing on the road in Iran, the government sentenced 10 years

February 1, 2023

IND vs NZ: Suryakumar’s steps slowed down as soon as he reached Ahmedabad, said – came back

January 31, 2023

Surya’s talk turned out to be completely different from Hardik on pitch ruckus, know what he said

January 31, 2023
Facebook Twitter Instagram
Facebook Twitter
News NCRNews NCR
Subscribe
  • National
  • World
  • Auto
  • Sports
  • Business
  • Health
  • Entertainment
  • Tech
  • Career
  • More
    • Politics
    • Food
    • Insurance
    • Travel
    • Personal Finance
    • Market
    • Crypto
    • Lifestyle
News NCRNews NCR
Home » Government has given big relief for PF! Understand in easy language – who else will get the benefit of this exemption
National

Government has given big relief for PF! Understand in easy language – who else will get the benefit of this exemption

EditorialBy EditorialApril 4, 2021Updated:April 4, 2021No Comments4 Mins Read
Facebook Twitter Pinterest LinkedIn Tumblr Reddit
Government has given big relief for PF!  Understand in easy language - who else will get the benefit of this exemption
Share
Facebook Twitter LinkedIn Pinterest Email

Amit Ranjan said that the 5 lakh exemption limit means that if someone’s contribution to the PF is Rs 6 lakh per annum, then according to his tax slab, he will have to pay tax only on the interest earned from the additional contribution of Rs 1 lakh.

Nominal picture

Tax Free Investment in PF: Finance Bill 2021 passed in the Lok Sabha last month. According to the amendment made in the bill, great relief has been given for your EPF. The government has increased the exemption limit on interest on the amount invested in the Provident Fund from Rs 2.5 lakh to Rs 5 lakh. However, the thing to note is that a condition has been imposed here. This exemption will be only in the case where the employer i.e. the employer does not have a contribution count.

To understand this in easy language, the government has made the interest on provident fund (PF) on annual contribution of up to five lakh rupees tax-free for a certain category. Contribution to the Provident Fund made by the employer is not included in this limit. That is, only your EPF contribution has been kept tax free up to 5 lakh rupees. If both the employee and the employee contribute to a PF account, then this limit will be only 2.5 lakh rupees. At the same time, in such an institution or trust or company, where the employer does not have contribution, this limit will be 5 lakh rupees.

Who will get the benefit?

Those people whose contribution is not made by the employer in the PF account, only those people will get this benefit. CA Amit Ranjan, who runs a tax assessment firm in Gurugram, said that the condition of contribution from the employer means that most people in the private sector will not get the benefit. This will benefit HNIs with high salaries and some people with government jobs.

In fact, it has been seen in the PF of some old government employees that the employer does not contribute to it. Such workers can get its benefit. While for the remaining people, interest on PF investment up to Rs 2.5 lakh will be tax free.

How is tax calculated

One thing you mean is that tax is calculated above this exemption limit. Amit Ranjan said that the 5 lakh exemption limit means that if someone’s contribution to the PF is Rs 6 lakh per annum, then according to his tax slab, he will have to pay tax only on the interest earned from the additional contribution of Rs 1 lakh.

At the same time, if a person who comes in the exemption limit up to 2.5 lakh has contributed up to 4 lakhs, then the interest earned on his (4-2.5) additional contribution of 1.5 lakh rupees is taxed.

What was the proposal in the budget, what changed

According to Finance Minister Nirmala Sitharaman when she presented the budget for the financial year 2021-22, from April 1, tax was to be levied on the interest paid on the annual PF contribution of more than 2.5 lakhs of employees. However, this tax will be levied only on the contribution of the employee. Employer’s PF contribution will be tax free as before. That is, earlier, there was no tax on the interest received from the entire PF contribution.

Now, according to the changes brought in it, PF contribution up to Rs 5 lakh has been tax free in such cases, where the contribution of the employer does not remain. This means that the benefit of this is going to get mostly people with government jobs. For private sector employees, the contribution of up to Rs 2.5 lakh announced in the budget will be tax free.

Also read: You see the white and yellow lines on the roads every day, today also know the meaning of these

.

employees provident fund EPF EPFO PF PF account
Share. Facebook Twitter Pinterest LinkedIn Tumblr Email
Editorial
  • Website

Newsncr.com latest publishes news from the automobile, investment, real estate, technology, and related sectors. But in addition to that, we also cover lifestyle topics, like fashion, food, travel, and health. Along with all these, we also keep an eye on rising topics like cryptocurrency, startups, venture capital.

Related Posts

Uttarakhand’s tableau wins first prize in 74th Republic Day Parade

January 31, 2023

Chief Minister Yogi said that tampering with Sanatan Dharma means playing with humanity

January 31, 2023

Budget Session: Oppn seeks discussion on Adani, BBC film row; Govt says ready for all

January 31, 2023
Our Picks

Mirzapur’s Dimpy Pandit is very glamorous in real life, shares such pictures

January 31, 2023

Anupama 2 years success: Anupama Rupali Ganguly became emotional, said- lost my father, but when I set ..

January 31, 2023

‘Jawan’ director Atlee’s house echoed, wife gave birth to a son

January 31, 2023

Sara Khan, Arjun Manhas’ film ‘The Era of 1990’ trailer released, film based on piracy scam

January 31, 2023
Don't Miss
World

Couple was dancing on the road in Iran, the government sentenced 10 years

By EditorialFebruary 1, 20230

The name of this blogger couple is Astiyaz Haghighi (21) and Amir Mohammad Ahmadi (22).…

Sports

IND vs NZ: Suryakumar’s steps slowed down as soon as he reached Ahmedabad, said – came back

By EditorialJanuary 31, 20230

Indian explosive batsman Suryakumar Yadav became very emotional as soon as he reached Ahmedabad. he…

Sports

Surya’s talk turned out to be completely different from Hardik on pitch ruckus, know what he said

By EditorialJanuary 31, 20230

Regarding the pitch of Ikana, Hardik Pandya had said that it is not according to…

Entertainment

Mirzapur’s Dimpy Pandit is very glamorous in real life, shares such pictures

By EditorialJanuary 31, 20230

dark mode NewsNCR | Edited By: Mohd. israfil khan Updated on: Jan 31, 2023 |…

About Us
About Us

NCR News: Read the Latest News, Viral News, Local News, India news, Health news, finance news, business news, technology and auto news.

We're accepting new partnerships right now.

Email Us: [email protected]

Our Picks

Couple was dancing on the road in Iran, the government sentenced 10 years

February 1, 2023

IND vs NZ: Suryakumar’s steps slowed down as soon as he reached Ahmedabad, said – came back

January 31, 2023

Surya’s talk turned out to be completely different from Hardik on pitch ruckus, know what he said

January 31, 2023
Must Read

Dehydration can cause many diseases in the body, how to prevent it

March 25, 2022

Hyaluronic hoax: Have we been duped by ‘science-backed’ skincare?

July 31, 2022

Tejashwi Yadav Marriage: Uncle Sadhu Yadav Revealed! The boy’s mother was a Brahmin, so Lalu had rejected the relationship for Misa.

December 12, 2021
Facebook Twitter Instagram Pinterest
  • About us
  • Contact
  • Contribute For Us
  • Privacy Policy
  • Disclaimer
© 2023 News NCR. All Rights Reserved.

Type above and press Enter to search. Press Esc to cancel.