Govt unlikely to review Rs 2.5 lakh threshold to tax PF interest


2021-02-17 00:42:53

NEW DELHI: The government is unlikely to review the Rs 2.5 lakh threshold for taxing interest income on provident fund contributions, arguing that the move affects just 1% of subscribers to the social security scheme.
Government sources said there was a practice of some people parking large sums, even up to Rs1 crore a month, in PF to seek tax exemption and also earn high interest rate.
“Of course, PF is lifetime saving of the working class and the government is committed to ensure that they benefit. But we had to undertake reforms to ensure there is no misuse of the tax exemption on PF deposits,” said a senior government functionary.
Sources said the new measure was introduced to essentially identify those seeking tax exemption and assured returns by parking large amounts in PF accounts. “We have details of certain individuals depositing Rs 1 crore and even Rs 2 crore a month in EPF accounts,” the official said, adding it was causing a loss to the government.
On Tuesday, TOI had reported that the government is exploring the option of an annual deduction on the interest income earned by employees contributing over Rs 2.5 lakh into their PF accounts, while suggesting that accounts up to the tax-free cap be maintained separately.



Source link

48 Comments

  1. MarcosEtess March 5, 2021
  2. Randyabemi March 8, 2021
  3. Wayneweday March 11, 2021
  4. Wayneweday March 12, 2021
  5. JeffreyGog March 13, 2021
  6. JeffreyGog March 14, 2021
  7. Wayneweday March 14, 2021
  8. Ricardomus March 16, 2021
  9. Ricardomus March 17, 2021
  10. Ricardomus March 18, 2021
  11. ThomasHaf March 18, 2021
  12. Ricardomus March 19, 2021
  13. Ricardomus March 20, 2021
  14. MarvinHag March 22, 2021
  15. MarvinHag March 23, 2021
  16. MarvinHag March 25, 2021
  17. MarvinHag March 26, 2021
  18. Jasoncok March 27, 2021
  19. MarvinHag March 27, 2021
  20. MarvinHag March 28, 2021
  21. VictorJonge March 29, 2021
  22. Scottrhync March 30, 2021
  23. VictorJonge March 30, 2021
  24. VictorJonge March 31, 2021
  25. Frankhem April 1, 2021
  26. Frankhem April 2, 2021
  27. Charlesget April 4, 2021
  28. Stevenstazy April 5, 2021
  29. Charlesget April 5, 2021
  30. Stevenstazy April 6, 2021
  31. Charlesget April 6, 2021
  32. Alfredted April 7, 2021
  33. Alfredted April 8, 2021
  34. Alfredted April 9, 2021
  35. HarryShife April 10, 2021
  36. HarryShife April 10, 2021
  37. Robertovob April 13, 2021
  38. Robertovob April 14, 2021
  39. Robertovob April 15, 2021
  40. JamesBrivy April 15, 2021
  41. Robertovob April 16, 2021
  42. Robertovob April 16, 2021
  43. Rafaelweilk April 17, 2021
  44. Rafaelweilk April 18, 2021
  45. Rafaelweilk April 19, 2021
  46. Rafaelweilk April 20, 2021
  47. Jamesmug April 21, 2021
  48. GeorgeReind April 21, 2021

Leave a Reply