Take home salary will also be less …
Salary payers get theirs after retirement Provident fund Money is a big attraction. Provident fundThe entire amount received is tax deductible. The interest earned by the customers is not added to it. People who earn more from their salary also contribute more to the provident fund. Also, the interest earned on it is higher. On the amount deposited in the provident fundFrom the government8% interest is paid. Finance Minister on MondayNirmala SitharamanPresented the budget in Parliament.
Although they have not made any changes in the tax slab, the new announcement they have made is a sign that the working class will be left in the lurch. This is because it has been announced that if more than Rs 2.5 lakh is deposited in the provident fund account every year, they will be taxed. A few days agoGovernmentThe new law was brought.
Therefore, the salary in the hands of the salaried class will be reduced and the amount in the provident fund will be increased. On the other hand, if more than a certain amount is deposited in the provident fund, tax will be levied, which is likely to affect their savings. It will be effective from April 1.
During the budget, the finance minister clarified that those whose annual contribution to the provident fund is more than Rs 2.5 lakh will not get tax relief on interest. This means that if a person’s contribution to the provident fund is more than two and a half lakhs a year, he will also have to pay tax on the amount earned on his interest.
If a person contributes Rs 3 lakh to his provident fund account in the financial year 2021-22. So the interest they get on Rs 2.5 lakh will be tax free. But they will have to pay interest on the above Rs 50,000. If Rs. 4 lakhs are deposited in the person’s provident fund account in the financial year 2022-23, they will have to pay tax on the above Rs. 1.5 lakhs and also on the interest earned on Rs. The finance minister had clarified that a new system would be set up to enforce all these rules. One of the major issues is that the capping of Rs 2.5 lakh will be on the applicant’s contribution. It will not be on Empire Contribution.
