16 February 2021
Contribution to PF is not taxable but only interest on excess contribution is taxable. The Union Budget 2021 has proposed taxing the income on provident fund contributions of over Rs. 2.5 lakh a year. As per clause 5 of Finance Bill 2021, the interest on any contribution above Rs 2.5 lakh by an employee to a recognized provident fund will be taxable from 01 April 2021
16 February 2021
OK. 2.5 LAKH LIMIT INCLUDES EMPLOYEE SHARE +VOLUNTARY SHARE OF EMPLOYEE ? WHETHER ONE CAN TAKE AS DEDUCTION U/S 80C IF AMOUNT OF EMPLOYEE SHARE AND VOLUNTARY SHARE IS BELOW 150000
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