LIVE GST Certification Course by CA Arun Chhajer begins 27th April. Register Now!!

Pf interest taxation

Shailesh Patel (30 Points)

06 February 2021

Tax on pf if 3.5 lakh interest earned on pf balance... total interest 3.5 taxable ?or 1.5 interest taxable?

Reply
Follow
Share

2 Replies

Shankar Rugge (369 Points)
Replied 07 February 2021

Things are yet fully not clear. It has got nothing to do with interest of PF total amount balance in the PF act. If you deposit more than 2.5 lakh in PF act in a year then int earned at the PF rate on excess of 2.5 Lakh deposited will be taxed.

Read more at: https://www.caclubindia.com/forum/pf-interest-taxation-569606.asp?utm_source=feedburner&utm_medium=email&utm_campaign=Feed%3A+CaclubindiacomForum+%28CAclubindia.com%3A+Forum%29

debora M (BUSINESS DEVELOPMENT MANAGER) (1697 Points)
Replied 08 March 2021

contributions are tax-deductible up to ₹1.5 lakh a year under Section 80C. Interest earned on EPF, VPF and exempted PF trusts is exempt from tax (up to ₹2.5 lakh for staff contributions post the budget). EPF's EEE status stands in contrast to the National Pension System, which had exempt-exempt-taxable status.