Up to ₹2.5 lakh has been kept as the deposit limit for which interest is tax exempt, In this regard please clarify, whether the employees contribution limit 2.5 lakh applicable to statutory deduction of 12% or including voluntary contribution.
Ponnu Narayanan
Yes, the ₹2.5 lakh limit includes both your mandatory 12% EPF contribution and any extra VPF you choose to contribute. Any interest earned on contributions above this total is taxable.
Kothari Jain Patil & Chartered Accountants
Pune
CA Inter
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Murali and Sumeet Chartered Accountant
Bengaluru
CA Foundation
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CCI
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