As per Finance Act, 2021 interest accruals on the excess of employee's own annual contributions over Rs 2.5 lakh to EPF and Voluntary PF made post-April 1, 2021 are now taxable.
Suppose employee EPF + VPF per year outgo is Rs 3 Lakh. This leads to Rs 50,000 excess deposit.
How will the interest of Rs 50000 get calculated, then get offered as additional income and then get taxed?