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member since: Sep 27, 2021 | Viewed: 897
Category: Finance
The Union Budget 2021 has proposed taxing the interest income on the contributions over Rs. 2.5 lakh a year made by an employee to a recognised provident fund from 01 April 2021. In this article, we will understand the existing provisions of the provident fund and the impact of the proposed amendment. We all are well aware that employee’s share to the provident fund is deducted from his salary. Employer also contributes amount to his account in the fund. But are you all aware of the benefits of these contributions as per the existing provisions?
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