The government in Budget 2021 has announced proposals to restrict tax exemption for the interest income earned on the employees’ contribution to various provident funds for high income employees.
“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,” the Budget document said.
Source: livemint
