Hello friends, welcome to our news site www.informalnewz.com. Friends, today we have brought very special information for you. Finance Minister Nirmala Sitharaman, in her budget announcement, has announced a tax on interest money in PF received by employees. Employees undergo retirement after their jobs, so some part of their salary gets deducted in EPFO.
However, the same part has to be deducted by the employer of those company. Till now, there was no tax on the interest received on the money deposited by the employee, but now in the budget 2021, a big announcement has been made about the interest in PF, now EPF will also have to pay tax.
Also Read: EPFO Member Attention! New guidelines have been released, direct impact on you
Who will have to pay tax on interest in PF
However, no guidelines have been issued regarding this, but it has been announced to impose tax on the interest paid to such employees whose PF account is deposited more than 2.5 lakh rupees per year. However, people who deposit less than 2.5 lakhs in PF in a year will not have to pay any tax on interest.
Let me tell you that PF gets good interest as compared to other schemes which are currently being given 8.50% which is also higher than banks. And till now, there was no tax on this interest amount, so people like to keep their money in PF for a long time. But now the government has announced a tax on its interest if the amount deposited is more than 2.5 lakh rupees per year. Due to this, people are also being told to deposit large amounts of money in PF.
If you want to avoid tax on the interest received on the amount deposited in the PF, then you will have to deduct the same amount in your PF account so that your account does not have more than 2.5 lakh rupees annually.
