EPFO: Provident Fund (PF) is the biggest medium of investor, which is used by investors, employees to make retirement plans. Recently, it was kept at 8.1 percent while cutting interest on the EPFO side. After this, from April 1, PF investors are going to get another major setback. Provident Fund, which is tax-free till now, will have to be taxed from April 1. Let’s know is this new rule..
The central government had changed the rules
Union Finance Minister Nirmala Sitharaman has given a big blow to the account holders of Employees’ Provident Fund Organization (EPFO) in the Union Budget last year. The Finance Minister had proposed to bring the interest earned on deposits of more than Rs 2.5 lakh per year under the purview of tax from the new financial year starting April 1. Those earning more than this decision of the government will now have to pay tax on the interest received on the provident fund.