Highlights

  • Govt notifies rules on taxable PF account income
  • CBDT to spilt PF accounts into two where PF income > Rs 2.5 lakh
  • PF accounts to be split in tax and non-taxable

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

Finance Ministry notifies rules for calculating taxable interest in PF account. 

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      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

      CBDTNirmala SitaramanPF accountIncome TaxEPFO

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