New Delhi: Shocking figures have come out about the amount deposited in the Provident Fund account. A sum of Rs 62,500 crore is deposited in the provident fund account of 1.23 lakh people receiving huge paychecks. According to sources quoted by Zee News, there is a deposit of Rs 103 crore in the provident fund account of the person who contributed the most.
In the Union Budget 2021, the government has proposed that if the annual contribution of a person in the Employees Provident Fund (EPF) account is more than Rs 2.50 lakh, then he will not get tax exemption on the interest on the higher amount.
Sources in the revenue department said that there are 4.5 crore shareholders contributing to the Employees Provident Fund Organization (EPFO) account. Of these, 1.23 lakh accounts belong to the rich people, ie, those who get fat salaries. These people deposit a huge amount every month in EPF account. A source quoted by Zee News justifying the bringing of higher interest to tax, said "These high-income people currently have Rs 62,500 crore deposited in their PF account and the government gives them a fixed return of 8 percent with tax exemption. They are getting this benefit at the cost of honest low and middle income, salaried and other taxpayers.
The sources said that one contributor has over Rs 103 crore deposited in his PF account. At the same time, there are more than 86 crore each deposited in the accounts of two other such people. Around Rs 825 crore is deposited in the accounts of the top 20 high-income people, while the accounts of the top fat salaries of 100 high earners have more than Rs 2,000 crore. The sources added that the purpose of the proposal made in the budget is to remove the abnormality among the contributors and to put a curb on those of high-income group who are depositing a large amount to take advantage of the provision of the fixed high-interest rate.
Sources also said that these contributors are 0.27 percent of the total number of EPF account holders and their average per capita fund is Rs 5.92 crore. Hence, they are earning Rs 50.3 lakh per person annually with tax-free fixed returns. This earning is being made at the cost of the salaried class and other taxpayers. The sources said that the removal of interest rebate on the contribution of Rs 2.5 lakh and above in the budget is based on the principle of equality. The average normal EPF or GPF contributor will not be affected by removing this flaw in the system.