New Delhi: When it comes to retirement savings or investment, the Employees Provident Fund (EPF) is one of the most common choices for a lot of people in India. For many, EPF is the only retirement saving option as it is safe and offers great returns.
Recently, FM Sitharaman in her Budget 2021 speech proposed to tax interest earned on annual provident fund contribution beyond Rs 2.5 lakh. This proposal is going to severely impact the employee provident fund (EPF) returns of high-income earners in the next financial year. If your EPF and voluntary provident fund (VPF) annual contributions go beyond Rs 2.5 lakh then the tax on interest will be the same as the income tax rate (including surcharge, if any) applicable to the individual.
Source: ET Now News
