Updated Feb 01, 2021 | 19:37 IST
The Budget also proposed to remove the tax exemption available under Section 10(10d) to Ulips with a premium of more than Rs 2.5 lakh per year. Representational image
New Delhi: The Union Budget 2021 has some bad news for high earners. Although Finance Minister Nirmala Sitharaman did not mention in her Budget speech, the Budget proposes to tax interest earned on provident fund contribution above Rs 2.5 lakh per year.
“An interesting change not covered in the Speech relates to taxation of interest earned by employees on their Provident Fund. Interest earned on annual PF contribution exceeding 2.5 lacs from April 2021 will now be taxable, said Alok Agrawal, Partner, Deloitte India.
pf budget 2021: interest earned by PF contributions above Rs 2 5 lakh a year will now be taxed : Budget 2021: ढाई लाख रुपये से ज्यादा पीएफ में जमा करने वालों को झटका, अब देना होगा टैक्स
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