Tax-free provident fund limit may be raised to Rs 5 lakh: Report


Government may increase the limit of tax free provident fund in the upcoming budget

The government may double the limit of tax-free contribution to provident fund to Rs 5 lakh per annum for all salaried employees in the upcoming Union Budget 2022-23, to bring them at par with government employees, a report said. . ,

Although the government had announced in the previous Union Budget for 2021-22 to limit the contribution of tax-free Annual Provident Fund (PF) to Rs 2.5 lakh to get tax-free interest income, later the limit for those funds was increased to Rs.5 lakh. Where employers do not contribute. The limit was increased by amending the Finance Bill.

However, this change benefited only a small section of top government officials, who contribute a higher amount to the general PF.

Now, according to a report in The Hindustan Times, the government may raise the limit for all salaried employees to Rs 5 lakh per annum.

According to the report, the government has received several representations to enable this provision. These representations basically emphasized that since this provision benefited only government employees, it should be non-discriminatory and all salaried employees should be covered.

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