Only interest accrued on 60 per cent contribution to #EPF after April 1, 2016 will be taxed 

#Delhi : #Budget2016 : Only interest accrued on 60 per cent contribution to EPF after April 1, 2016 will be taxed.

Addressing concerns that the Public Provident Fund will also fall under the announcement that 40 per cent of PF will be taxed on withdrawal at the time of retirement, the government has issued a clarification on Tuesday.

“PPF contributions will continue to be tax exempt. There will be no tax on withdrawal,” said Revenue Secretary Hasmukh Adhia. “Small salaried employees with up to Rs. 15,000 per month income will be kept out of purview of proposed taxation of EPF. Only interest accrued on 60 per cent contribution to EPF after April 1, 2016 will be taxed. The principal amount will remain tax exempt,” he added.

Bureau Report