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Home Main Story

Provident Fund To Be Split Into 2 Accounts – Taxable And Non-Taxable

The Edge Media by The Edge Media
4 years ago
in Business Edge, Main Story
Reading Time: 1 min read
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Provident Fund To Be Split Into 2 Accounts – Taxable And Non-Taxable
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The Centre has notified new income tax rules under which the existing provident fund (PF) accounts will be split into two separate accounts, to enable the government to tax PF income generating from employee contributions which exceed ₹ 2.5 lakh annually.

Central Board of Direct Taxes (CBDT) has issued the rules and separate accounts within the PF account shall be maintained.

Subsequently, all existing employees provident fund (EPF) accounts will be divided into taxable and non-taxable contribution accounts.

The non-taxable accounts will include their closing account as it stood on March 31, 2021.

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