Provident Fund account to be split into two; taxable and non-taxable

You would soon have two provident fund accounts as per the regulations notified by the central government on Thursday. The PF account would be split into two separate accounts in order to levy the new tax on PF income arising out of employee contributions exceeding Rs 2.5 lakh a year.

All existing employees provident fund (EPF) accounts will be divided into taxable and non-taxable contribution accounts. 

This move does not affect small and medium taxpayers as the Rs 2.5 lakh limit covers around 93 per cent of the people who are EPFO subscribers and they will continue to get assured tax-free interest.

Also Read: Your PF could get blocked if you do not follow this rule before September 1, here is what you need to do