During Budget 2021, Sitharaman announced interest earned on the EPF contributions (only employee contribution) above ₹2.5 lakh a year will be taxable from 1 April
Finance minister Nirmala Sitharaman on Tuesday increased the deposit threshold limit to ₹5 lakh per annum in provident fund for which interest would continue to be tax exempt, if there is no employer contribution.
During Budget 2021, Sitharaman announced interest earned on the EPF contributions (only employee contribution) above ₹2.5 lakh will be taxable from 1 April. “In order to rationalise tax exemption for the income earned by high income employees, it is proposed to restrict tax exemption for the interest income earned on the employees’ contribution to various provident funds to the annual contribution of ₹2.5 lakh,” Sitharaman said in her Budget 2021 speech.
Source: livemint
