Is employer responsible to deduct tax on PF interest Exceeding 2.5 lakhs or employee?

Ask the Community Income Tax
,
1

Hi,

Is employer responsible to deduct tax on PF interest exceeding 2.5 lakhs or should employee declare it during IT filing?

1 Like
2

Hi Swati,

The interest earned will be taxable under the head Income from other sources. and the interest component will also be subject to TDS under Section 194(A). The additional interest income will be added to your total income for the year. Then, it will be taxed as per your tax slabs.

Regards,
Bhuvana Anand