(MENAFN- Live Mint) So far, all interests in Employees' Provident Fund (EPF) contributions have been tax-free. However, that is changing. Finance Minister Nirmala Sitharaman declared a significant change in her Budget 2024 speech.
Also Read | Budget 2024
Political Reactions Live: 'Budget will give power to...', says PM
Starting from FY2021-22, the interest on EPF contributions up to ₹2.5 lakh per year remains tax-free. However, the interest on EPF contributions exceeding ₹2.5 lakh per year is taxable, Budget 2024 proposes.
A Reddit user shared an image of the items taxable under the Prime Minister Narendra Modi 3.0 coalition government. Among items like dividends, stocks and fixed deposits, the image also shows Provident Fund.
“What else is left to tax??” the user called“Real_Alonemusk” asked. And, he received some hilarious replies.
Also Read | Budget 2024 Corporate Reactions Live Updates: FM Sitharaman tables budget
“Tax for breathing air”, wrote one user. Another commented,“Tax on Barber shop? What? So we should just keep growing our hair or something?”
When one user pointed out it could be“Tax on how much tax you are paying”, another remarked that it was already there as Central Excise and Service Tax (CESS).
“Tax on bridge collapses!!” one user pointed out while another wrote,“There should be a politician tax of 5% of their total assets.”
Also Read | Budget 2024 Live Updates: Lower capital gains tax to encourage investment - FM
“Marriage tax, death tax, birth tax, job change tax, divorce tax. Eventually for facilitating divorce they ask for a cut of assets from both husband and wife. Heck at this point, they ask for a subscription fee to stay in india. Subscription free for country, state, district, area, apartment. On wait we already pay subscription free to our apartments under maintenance,” blasted one user.
“Days are not far when they will implement tax on checking Reddit Notifications,” predicted one user.
EPF taxes: How much to pay?
The Interest on the employer's EPF contribution is tax-free up to 12% of the employee's salary. Only the interest earned on contributions exceeding ₹2.5 lakh is taxable for the employee's contributions.
Also Read | Budget 2024: Memes flood social media; all eyes on FM Sitharaman's I-T offers
This taxable interest is added to the individual's total income and taxed based on their income tax bracket.
MENAFN23072024007365015876ID1108470926
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.