This rule of EPFO will change from April 1 : Friends, a major change is going to happen in the EPFO rule from April 1, 2021, although this change will affect very few PF account holders, as it will only affect those employees who get big money Those who deposit more contribution in their PF account. So let’s know all about this new rule.
This Rule Of EPFO Will Change From April 1
With effect from April 1, 2021, the annual PF contribution of the PF members is more than 5 lakh, then they will have to pay tax on the interest received on that amount. Till now, even after depositing PF, there was no tax on the interest received in it, but now there will be more than 5 lakh contribution, this new rule will be applicable and whatever amount is more than 5 lakh will be interest on that interest. Tax will have to be paid.
Understand this by example
If an EPF member submits PF of 7 lakh rupees in 1 year, then he will not have to pay any tax on the interest received up to5lakh rupees, but for the remaining 2 lakh rupees, the tax will be paid. Will have to pay.
How Does PF Contribution Exceed 5 Lakh Rupees In 1 Year?
The question that must be coming in the mind of many of you is, how can more than 5 lakh rupees PF be deposited in a PF member’s PF account in 1 year? Because according to the rule, only those with a basic salary of Rs 15000, the PF is deposited, which is deposited at the rate of 12%.
Friends, let us tell you that under EPFO, an employee can deposit more than 12% of his salary in his PF account, which is called VPF (voluntary provident fund). However only 12% PF will be deposited by the employer. But under EPFO, a lot of interest is paid and in view of this interest rate, some members deposit more than 12% contribution in their PF account and earn good interest on it.
So friends, all of us are not going to be affected by this new rule, it will affect only those who submit more than 12% contribution under VPF.
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