There is much-needed news for job-doers. If you are also an employee, then definitely your account will also be opened in the employees' provident fund organisation or EPFO. So now the PF account is also going to be taxed. A part of your salary is credited to the PF account. But now there are going to be some new changes in pf rules. From April 1, 2022, the existing PF accounts will be divided into two parts.
Tax on these PF accounts: It is reported that last year the government had notified the new income tax rules. Now under this, PF accounts will be divided into 2 parts. In case of employee contributions of more than Rs 2.5 lakh per annum to the Centre, pf income is going to be taxed. In fact, the aim of the new rules is to prevent high-income people from taking advantage of the government welfare scheme.
Here are the highlights of the new PF rules-
- Existing PF accounts will be divided into taxable and non-taxable contribution accounts.
Non-taxable accounts will also include their closing account as the date is March 31, 2022.
The new PF rules are to come into force from the financial year i.e. April 1, 2022.
- A new section 9D has been inserted under the IT rules to impose a new tax on PF income from employee contributions of more than ₹2.5 lakh annually.
- Two separate accounts are also going to be created in the existing PF account for taxable interest calculation.
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