After Budget 2021, interest on an employee's contribution to an EPF account above Rs 2.5 lakh during the financial year is taxable in the hands of the employee.
26 February 2023
any interest credited to the PF account of an employee shall be tax-free in case of contributions up to Rs 2.5 lakh every year. However, any interest on the contribution of an employee of over Rs 2.5 lakh will be taxed in the hands of the employee. In case an employer does not contribute to the PF account of the employee, then the threshold limit applicable will be Rs 5 lakh of the contribution of the employee
27 February 2023
In case employee portion is 3 lakhs and employer portion is 3 lakhs. Will 50 thousand be taxed from employee portion ? Or 1 lakh will be taxed as total PF is 1 lakh more than than 5 lakh ceiling.
CAclubindia
