Clarity on EPFO tax break-up
05-04-2022 10:22:40
Starting in FY23, interest earned on your annual employees’ provident fund (EPF) contribution of over Rs 2.5 lakh (Rs 5 lakh for government employees) is subject to tax. The Central Board of Direct Taxes framed rules on taxing interest earned on this excess contribution in September 2021, effective from assessment year 2022-23.
From April, once the interest for FY22 is credited, there will be two sections in the EPF account statement – one reflecting the taxable component and the other the non-taxable portion.
