New Delhi . All the employed people whether they are in private company or government Employees Provident Fund organization ie they will definitely have an account in EPFO.
But now from April 1, these PF accounts are going to change. Which will fall directly on people like you. Actually, from April 1, 2022, the existing PF accounts are likely to be divided into two parts.
Let us tell you that after April 1, all PF accounts will be divided into two parts, nontaxable and taxable contribution account. And all these PF accounts will be taxed. Closing accounts will also be included in nontaxable accounts as per information provided by the Central Board of Direct Taxes. According to the government, the purpose of bringing these new rules is to keep those people away from the government scheme, whose income is very high. That is, people with high income have to be stopped from taking advantage of the government welfare scheme.
New PF rules going to be implemented from April 1
According to the Central Board of Direct Taxes i.e. CBDT, their closing account will also be included in the non-taxable accounts, as its date is March 31, 2021.
A new section 9D has been included under IT rules to introduce new tax on PF income from employee contribution above ₹ 2.5 lakh per annum.
Two separate accounts will be created in the existing PF account for calculation of taxable interest.
It is known that in September last year, the government had notified new income tax rules, according to which PF accounts will be divided into two parts. In which he had told that income tax will be levied if the employee contribution is more than 2.5 lakh rupees, while income tax will not be charged if it is less than 2.5 lakh. Let us tell you that most of the PF subscribers will benefit from the limit of Rs 2.5 lakh. Small and middle class taxpayers will not be affected by the new rule.
