The limit of deposit in provident fund has been increased to ₹ 5 lakh per year, for which tax exemption on interest will continue if the employer does not contribute : Finance Minister

New PF Tax Rule: If employers do not contribute then the limit of tax free investment in PF is 5 lakhs.

During Budget 2021, Sitharaman announced interest earned on EPF contribution (employee contribution only), which is more than Rs 2.5 lakh from April 1.

Finance Minister Nirmala Sitharaman on Tuesday increased the deposit limit in Provident Fund to ₹ 5 lakh per year, for which tax exemption on interest will continue if the employer does not contribute.

read more at : EPFO retains interest rate at 8.5 per cent for 2020-21

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