Provident Fund Contributions Above ₹ 2.50 Lakh To Be Taxed

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Provident Fund Contributions Above ₹ 2.50 Lakh To Be Taxed: 10 Points
The Centre has planned to tax Employees Provident Fund (EPF) contributions exceeding ₹ 2.50 lakh yearly.

https://www.ndtv.com/business/pf-contributions-...

PF tax rule: EPFO members await clarity


https://economictimes.indiatimes.com/news/econo...

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Deal Lieutenant Deal Lieutenant
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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?

Cool Cool
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kukdookoo wrote:

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?

abhi tak kuch confirmation ya clarification nahi aaya hai

Deal Lieutenant Deal Lieutenant
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kukdookoo wrote:

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?

2.5 is only own contribution.. Employer limit is 7.5

Deal Cadet Deal Cadet
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jiska contribution 2.5 h wo log kripya dime account delete krwale, blood pressure shi ho jayega 😄

Mobile Guru Mobile Guru
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Inko matlab sukuun se jine hi ni dena hai…
Hakk k paise pebi ab tax…wah wah…*

Deal Subedar Deal Subedar
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adnan_d92 wrote:

2.5 is only own contribution.. Employer limit is 7.5

employer dont contribute more than 12% and some employer only contribute 1800 pm.

Deal Lieutenant Deal Lieutenant
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Ye to bahut badhiya vikas hai mitron

Deal Lieutenant Deal Lieutenant
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akki.akki wrote:

employer dont contribute more than 12% and some employer only contribute 1800 pm.

this section is has relevance only for high salary earners, 30 LPA

Hunk Hunk
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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...

Hunk Hunk
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shoaibmax wrote:

Ye to bahut badhiya vikas hai mitron

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!

Deal Lieutenant Deal Lieutenant
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atx88 wrote:

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!

Bhai so jao

Hunk Hunk
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shoaibmax wrote:

Bhai so jao

aajao bhai saath me sote hain 😜

Deal Lieutenant Deal Lieutenant
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atx88 wrote:

aajao bhai saath me sote hain 😜


https://cdn0.desidime.com/attachments/photos/752744/medium/images_%287%29.jpeg?1647549653

Deal Cadet Deal Cadet
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Is 2.5 yearly or overall contribution from lifetime?

Deal Cadet Deal Cadet
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At this rate, Modi ji will definitely launch a Tax on BREATHING,  before he takes his last breath.

Deal Cadet Deal Cadet
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atx88 wrote:

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 😄

Deal Subedar Deal Subedar
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adnan_d92 wrote:

this section is has relevance only for high salary earners, 30 LPA

not really, If you contribute VPF then also it can surpass 2.5 lakh limit.

Deal Subedar Deal Subedar
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atx88 wrote:

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...

Thers is a concept of VPF in which employee can contribute 12% + 88% pf of basic + DA.

And the irony is example is given for who puts 1 crore pm and cap is applied on 2.5 lakh yearly.

Deal Subedar Deal Subedar
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atx88 wrote:

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...

intelligent nikala bhai than those morons including news channels who dont understand why PF is there in the first place and live in shoe box.

assuming 12% of basic goes to pf (not vpf) how much should be our basic to contribute ~20k per month? Ye toh socho bhai log.

Dont look at those standups( i meant channels) who mock on everything leaving the “asali mudda”.

Deal Lieutenant Deal Lieutenant
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akki.akki wrote:

not really, If you contribute VPF then also it can surpass 2.5 lakh limit.

Why would anyone do vpf of more than 150,000? There are better investment avenues

Deal Subedar Deal Subedar
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adnan_d92 wrote:

Why would anyone do vpf of more than 150,000? There are better investment avenues

why not ? it gives highest fixed, secure, & tax free return.

Deal Lieutenant Deal Lieutenant
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akki.akki wrote:

why not ? it gives highest fixed, secure, & tax free return.

Yes this the reason govt got this amendment and started taxing it

Deal Lieutenant Deal Lieutenant
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shivrajsingh wrote:

At this rate, Modi ji will definitely launch a Tax on BREATHING,  before he takes his last breath.

STOP giving them ideas.

Hunk Hunk
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somu7668 wrote:

bhai VPF ka naam suna hai kabhi 😄

naam sun-ne se social security ka concept nahi badal jayega bhai

Also, not everyone opts for VPF. Infact, very few people opt for it.
Although clear data is not provided, but ministry said it affects about 1% people, so it can be roughly assumed that 1% people opt for vpf on similar graph.

Hunk Hunk
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akki.akki wrote:

why not ? it gives highest fixed, secure, & tax free return.

which also implies govt liability to pay that much return and not ask for taxes as well.

Concept of pf or vpf is that it is a social security, which by concept, should focus of poor and middle class who might not be able to save for themselves enough to manage post retirement, that too when they don’t get enough pension (private employees + govt employees after 2004).

When you see from govt perspective, this is like a high interest loan, which they would want to reduce. So the reduction comes at cost of rich people or those who have enough to contribute more than 2.5L pf + vpf.

Now pls read vpf as ‘vpf or gpf’. Varna baadme bologe ‘gpf ka naam suna hai’

Hunk Hunk
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shivrajsingh wrote:

At this rate, Modi ji will definitely launch a Tax on BREATHING,  before he takes his last breath.

ofcourse. Tax on breathing for normal people.

And double tax on both breathing and not-breathing for such low IQ people who can think of breathing as some sort of monetary earning! And even no DTAA type scheme for people who think this as an idea. 😂

Cool Cool
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Explainer: Provident Fund Contributions Above ₹ 2.5 Lakh To Be Taxed
The government will tax PF contributions exceeding ₹ 2.50 lakh yearly – including the employee, the employer contributions and the interest earned.

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.

https://www.ndtv.com/business/explainer-provide...

Deal Cadet Deal Cadet
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atx88 wrote:

naam sun-ne se social security ka concept nahi badal jayega bhai

Also, not everyone opts for VPF. Infact, very few people opt for it.
Although clear data is not provided, but ministry said it affects about 1% people, so it can be roughly assumed that 1% people opt for vpf on similar graph.

i think said 1% based 12% contribution only, doubtful they considered vpf in this calculation because I personally many people opting for vpf in my company and friend circle. So it is an over burden for all of them.

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