EPF Subscribers be alert! Know the latest updates which are going to be implemented post April 1st,2022 onwards

Big alert to EPF Subscribers! As per recent amendment passed in budget 2021-22, Contributions beyond 2.5 lakh are subject to tax. So every epf subscriber is liable to pay tax if his epf a/c crosses the threshold limit of 2.5 lakh in a financial year.

Latest amendment to be implemented on epf a/c’s post April 1st, 2022 onwards

  • As per CBDT(Central Board of Direct Taxes) interest income above 2.5 lakh on epf contributions are subject to tax
  • New section 9D is introduced in the income tax laws on the employees contribution over and above 2.5 lakh
  • From new financial year 2022-23 onwards epf a/c’s are to be categorised under- Contribution accounts and Non Taxable Contribution accounts
  • EPF contributions over and above 2.5 lakh are split into contribution accounts whereas epf contributions below 2.5 lakh are to be deposited in non taxable contribution accounts
  • By splitting epf contributions among contribution and non taxable contribution a/cs, computing tax would become easier

So epf subscribers be alert on the latest amendment. With effect from April 1st,2022 you should split your epf contributions into two a/c’s- Non Taxable Contribution a/c’s and taxable a/c’s(contribution a/c’s). So plan your dealings accordingly!

Published by bankinfor

I am a financial expert interested to create awareness on personal finance, insurance and investment products and it's pros and cons to a common man. My intention is to make public aware on savings and investments which should be a part of everyone's financial life. By browsing this site you can learn various investment products and it's risks(people mistaken this concept)associated with them

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