Will the EPF be taxable from 2021-22 financial year?

Hi,

Need some clarity on the details of recent PF related taxes. Will the EPF be taxable from 2021-22 financial year ?

Please advise

2 Likes

(a) This interest taxability shall be applicable only for the contribution made on or after April 1, 2021.

(b) The employee’s principal contribution, employer’s contribution, entire interest earned on employers’ contribution, and interest earned by the employee till 31st March 2021 are not taxable

© The interest income earned on excess contribution will be taxable only in those cases where the employees’ annual PF contribution exceeds Rs. 2, 50,000/-.

(d) The contribution to PPF is already restricted to Rs. 1.5 lakhs p.a. currently, so this amendment will not have any impact on PPF contribution.”

2 Likes

Hi @Ann

As @Ankit said, people with less than 2,50,000 contribution to PF annually need not worry but beyond that the interest income earned on excess contribution will be taxable.

As of now there is no direct mechanism to detect how much interest you have earned, but going forward PF passbook needs to be checked and added accordingly.

2 Likes
Powered by | India's No.1 Payroll and HR Software.
9000+ Clients
150 Cities
10 Lakh+ Users