Tax on PF interest will change the way we invest in it: How the Budget hits your PF

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Tax on PF interest will change the way we invest in it: How the Budget hits your PF
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, ET Bureau
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Synopsis

This is not the first time the government has proposed to tax Provident Fund money. A significant number of salaried employees use the Voluntary Provident Fund to invest more than the mandatory 12% of basic pay. The new Wage Code adds another complexity to the issue.

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The tax on interest from contributions above Rs 2.5 lakh could change the way we invest in the PF.

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2 Comments on this Story

Virender11 minutes ago
It is a very bad hit for all subscribers (eventually as the income grows). Cap of 2.5 lakh employee contribution should be introduced on Employee Subscription amounts rather than taxing above 2.5 lakh. The Exempt,Exempt,Exempt status should be maintained.
Suresh Kamath1 hour ago
Decent Advise for Investors