PF Accounts

The decision comes 15 years after the extension of PF and pension coverage to foreign workers via a legislative amendment

Those earning high salaries should think twice before getting it restructured

The finance ministry has notified rules for calculation of taxable interest on employee contributions to provident fund of over Rs 2.5 lakh per annum. In her Budget for 2021-22, Sitharaman had capped the tax-free interest earned on provident fund contribution by employees and employers together to a maximum of Rs 2.5 lakh in a year in an attempt to dissuade high earners from parking their surplus in what is supposed to be the common man's retirement fund. The Central Board of Direct Taxes (CBDT) on Wednesday notified rules for calculating taxable interest in provident fund. It said for the sake of calculation, separate accounts within the provident fund account shall be maintained beginning 2021-22 for taxable and non-taxable contributions made by a person. Nangia & Co LLP Partner Shailesh Kumar said the notification issued by CBDT has finally put to end the ambiguity which arose with the introduction of taxation of interest on provident funds with contribution above the specified

Under this facility, subscribers of the Employees' Provident Fund Organisation can merge as many as 10 previous accounts with their UAN at one go

Facing challenge from premature account closures, EPFO is moving to improve its services

Officials have identified that about Rs 42,000 crore is now lying in 'inoperative accounts' across the country