Updated Feb 27, 2021 | 14:01 IST
While no details have been shared as to how TDS will be applied, calculations show that if an individual s annual basic salary is close to Rs 21 lakh or more, they will come under the EPF tax net. EPF interest taxation: Here s how TDS will be calculated on interest earned on contribution beyond Rs 2.5 lakh
New Delhi: Budget 2021 left some taxpayers unsatisfied as there were no rate cuts or standard deduction limit hike. This Budget has left income-tax rates and slabs unchanged. While the Finance Minister did not announce any hike in super-rich surcharge, she found a way to tax the rich and super-rich by taxing the interest earned on Employee’s Provident Fund (EPF) contributions in excess of Rs 2.5 lakh in a financial year.
Updated Feb 11, 2021 | 06:15 IST
FM Sitharaman in her Budget 2021 speech proposed to tax interest earned on annual provident fund contribution beyond Rs 2.5 lakh. This proposal is going to severely impact EPF returns of high-income earners EPF interest taxation may impact your retirement plans. Here s how
New Delhi: When it comes to retirement savings or investment, the Employees Provident Fund (EPF) is one of the most common choices for a lot of people in India. For many, EPF is the only retirement saving option as it is safe and offers great returns.
For those who are not aware, EPF is a retirement savings investment tool wherein employers must contribute 12% of the basic salary plus dearness allowance and deduct an additional 12% on behalf of the employee. Out of the employer’s contribution, 8.33% goes to the Employees’ Pension Scheme (EPS) and earns no interest. However, the remaining 3.67% and the whole of employee’s contribution portion e