In Budget 2021, the Government had introduced a tax on interest on employee contribution to EPF over Rs 2.5 lacs in a financial year. The Government rationale was that many HNIs were taking benefit of tax-free interest by contributing heavily to the employee provident fund (EPF) account. Read this Economic Times article for more details. The Government feels it is not right … [Read more...] about EPF Tax: How will your EPF contribution above Rs 2.5 lacs be taxed?
Employee Provident Fund
In Union Budget 2016, the Finance Minister proposed a one-time tax exemption to EPF subscribers to switch to NPS. There will be no tax levied for making such a switch from EPF to NPS. Do note the transfer from EPF to NPS is only approved on paper. Many modalities are still being worked out. You can expect opposition from various quarters. However, since the switch is … [Read more...] about EPF vs NPS: Should you switch from EPF to NPS?
The Finance Minister dropped a bomb on many in the salaried class by announcing tax on withdrawal of EPF (Employee Provident Fund) corpus at the time of retirement. There has been a lot of protest against this move by the Government. The Finance Ministry had to issue a clarification to assuage concerns of many investors. The Finance Minister has confirmed that the proposal of … [Read more...] about EPF Calculator: Impact of Budget Announcement
Gone are the days when you would join a company at the age of 25 and retire from the same company after working for 35 years. There are so many opportunities. With 25-30% hike in salaries common while switching jobs, a number of us sometimes tend to forget about a corpus that you have been accumulating (in many cases, unknowingly) for your retirement. That corpus is Employee … [Read more...] about Tax on EPF Withdrawal