Income tax on EPF interest for contributions above 2.5 Lakhs?

Ask the Community Income Tax
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Hi,

My question related to this topic( Tax on PF interest - Budget 2021 - Ask the Community / Union Budget 2021-22 - greytHR Community).

How much income tax need to be paid on EPF interest for contributions above Rs 2.5 Lakhs?

Please guide.

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The interest earned by the Provident Fund contributions above Rs 2.5 lakh a year will now be added to the taxable income and taxed at the normal rates. This will only apply to the employee’s contribution and not that of the employer.

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This is depended on individual Income Tax slabs where one is.

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Hi @Nisha

We cannot exactly tell how much, as it depends on your taxable income for the financial year. But whatever is your taxable income this additional income earner via PF will be added to it and together calculated.