Provident Fund Contributions Above ₹ 2.50 Lakh To Be Taxed
https://www.ndtv.com/business/pf-contributions-...
- Sort By
jiska contribution 2.5 h wo log kripya dime account delete krwale, blood pressure shi ho jayega 😄
never thought but have to agree with you here… it is indeed good for 99% people but still feels odd because can’t understand how this capitalist govt has now started behaving like socialist. It hurts!
Just because you’re following NDTV does not mean it is new news. 😂
Its a bit old news now. Also, it affects only those people whose BASIC is more than 20.83 lakhs per year. Remember, PF is only on basic part of overall salary. And as per Finance Ministry, about 1% of total salaried taxpayers currently fall in this category.
PS: 20.83 lakhs here is not CTC, it is ONLY the BASIC component out of CTC. People with 45-50 lakh per year CTC would probably get 20.83 lakh basic. Just for an example - In my company, a person having 28 lakh CTC has about 5.94 lakh as basic (yearly). Now ofcourse it differs company to company but generally as packages increase, overall percentage of basic component decreases and variable pay increases. But with this, you can get a rough idea how much CTC would a person need to get 21 L basic only!
Now the reason this loophole is being plugged is because there are some people with extremely high salaries are putting even 1 crore in PF every month. What will be the salary of such person? They would definitely fall in HNI category and they don’t really need govt support. PF is actually a social security scheme by govt to help people get funds after retirement along with providing assured 8%+ returns which are also EEE category. But many are misusing it for getting high tax free interest. Social security schemes are for poor, middle class and maybe upper middle class but definitely not for HNIs earning more than 25-30 crore per year.
Here is article from Sep 2021 for more info:
https://www.businessinsider.in/personal-finance...
bhai VPF ka naam suna hai kabhi 😄
Is 2.5 yearly or overall contribution from lifetime?
At this rate, Modi ji will definitely launch a Tax on BREATHING, before he takes his last breath.
The government will tax Provident Fund (PF) contributions exceeding ₹ 2.50 lakh yearly – including the employee and the employer contributions, and the interest earned. The limit has been set higher for government employees at ₹ 5 lakh.
The centre announced the tax levy, citing several cases of abuse by wealthy and high net-worth individuals who have deposited vast sums of money into their PF accounts to avoid paying taxes on the income earned during the year.
employer contri is tax free upto 7.5 lac , I think.
yaar tax lo koi dikat nahi par bc koi achi suvidha to mile aam logo ko.sab doglapan ha
2.5 lakhs own contribution or 2.5 lakhs own+employer contribution is taxable?