Taxable PF Interest

Ask the Community Income Tax
1

Hi

PF interest on employee contributions towards PF+VPF above Rs. 2.50 lakh is taxable. Have few questions:

  • From which financial year it tis to be considered?
  • What rate to be considered for the purpose of calculation?
  • Whether interest is to be calculated on monthly bearing balance?
  • Is it employers responsibility to include in taxable income & deduct TDS?
  • GreytHR is not calculating this automatically. Is their any settings or configurations?

Would appreciate reply on these queries as we have to finalise tax working for FY 21222.

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2

It is applicable for FY 22. But as you can see, it is still not clear how and when this liability is to be computed with less than a week left for finalising the tax liability.

PF Details.pdf (591 KB)

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