Recent Changes In Income Tax On Provident Fund

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TAX IMPACT ON PROVIDENT FUND UNDER INCOME TAX ACT.

Any contribution of more than ₹2.5 lakh to your PF accounts from April 1, 2022 including employee, employer contributions, voluntary, personal, and interest earned will be treated as taxable income.

The tax on PF contributions above ₹ 2.5 lakh will be based on the income tax slabs you pay and taxed accordingly.

However, when this rule is implemented for government employees, the limit has been fixed at more than Rs 5 lakh.

Author : Uttam Bisht

11 February, 2024 | 11:24 PM

Mr. Uttam Bisht is a partner with the Delhi Branch of the firm. He has more than 8 years of experience and specializes in Statutory Audit. Expertise in Tax audit of various enterprises. Extpertise internal audit of Private enterprises. Audit planning through business understanding, preliminary analytical procedures, determining materiality levels, and preparation of audit program and pre-audit checklist . He is well conversant with the auditing standards issued by ICAI. .