Tax Management India. Com
                        Law and Practice: A Digital eBook ...

☞ Data-bank

TMI - Tax Management India. Com
Case Laws Acts Notifications Circulars Classification Forms Articles News D. Forum
Highlights
What's New

Share:   Share on facebook   Share on twitter   Share on linkedin

        Home        
 
Blank
Article Section

Home Articles Corporate Laws / IBC / SEBI CSLalit Rajput Experts This

Key Changes in PF Rules - Quick Overview

Submit New Article

Discuss this article

Key Changes in PF Rules - Quick Overview
CSLalit Rajput By: CSLalit Rajput
June 20, 2022
All Articles by: CSLalit Rajput       View Profile
  • Contents

Key Changes in PF Rules - Quick Overview

  1. The PF accounts are likely to be divided into taxable and non-taxable contribution accounts under the set of new Income Tax Rules.
  2. This new rule will only apply to the contributions made by the employee, while contributions made by the employer will not be taxed.
  3. In case there is no contribution done by employer to the EPF account then interest will be tax-exempt for the deposit up to 5 Lakh in a financial year.
  4. The new rule will apply to all EPF subscribers: un-exempted establishments, exempted establishments, and exempted trusts.
  5. Those who have not linked their PAN to their EPF accounts will have to pay 20% tax. While for others, the tax will be calculated at 10% rate.
  6. Forms 15G and 15H can be submitted with a valid PAN to reduce the rate at which tax is deducted. In the case of resident Indians, it will not be deducted if the TDS amount is up to Rs 5,000.
  7. In the case of non-resident Indians (NRIs), it will be deducted at the applicable rate, even if TDS amount is up to Rs 5,000.
  8. For the NRIs, the TDS will be 30 per cent. In addition, a 4 per cent cess will also apply. A surcharge will apply if interest earned exceeds Rs 50 lakh, whose rate could range between 10 per cent and 37 per cent, depending on the interest amount.
  9. To implement the new tax on PF income from employees' contributions exceeding ₹ 2.5 lakh annually, a new Section 9D in the income tax rules has been included.
  10. EPF accounts are mandatory for employees earning up to ₹ 15,000 per month in any firm with over 20 workers.

Source: News / Media

 

By: CSLalit Rajput - June 20, 2022

 

 

Discuss this article

 

|| Home || About us || Feedback || Contact us || Disclaimer || Terms of Use || Privacy Policy || Database || Members || Refer Us ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.
|| Site Map - Recent || Site Map || RSS Blog || Site Map XML ||