Feb 03

Budget 2020 : Now, your EPF will be taxed if…

by jasmeetsin in Uncategorised 0 comments 224

Budget 2020: Employer’s contribution to Employees’ Provident Fund (EPF), National Pension System (NPS) and superannuation fund above Rs 7.5 lakh to be taxed 

“It is proposed to put an upper cap of Rs 7.5 lakh in a year on tax exempt employer’s contribution in recognised provident fund, superannuation fund and NPS in the accounts of an employee,” the Budget document says.

The proposed amendment will be effective from April 1, 2021, and will apply from assessment year 2021-22. This means that an employer’s contribution beyond this limit will be subject to tax in the hands of the employee.

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