Save Rs 499 on a 2-Year Ad-Free CAclubindia Pro Membership. Subscribe Now!

PF TAXABLE

224 views

Save Share

Harshit Acharya

404 Points Posted on 25 February 2021

The new budget says that PF Interest above 2.5lakhs will be taxable. I s this interest only on employees contribution or both employer and employee? How is it computed?

Replies (2)

Quick Summary

The recent budget introduced taxation on PF interest exceeding £2.5 lakhs. There's confusion about whether this applies to employee contributions only or both employee and employer contributions. Initial advice suggests it's only on the employee's contribution, but further clarification is needed on the exact calculation method.