New Delhi: Govt. raises PF threshold limit to Rs 5 lakh, The authorities on Tuesday raised the deposit threshold restriction to Rs five lakh consistent with annum in the provident fund for which interest could continue to be tax-exempt. this would be applicable to the instances wherein no contribution is made by way of employers to the retirement fund.
In her finances presented to Parliament on February 1, Finance Minister Nirmala Sitharaman had provided that interest on employee contributions to provident fund over Rs 2.five lakh per annum would be taxed from April 1, 2021.
Replying to the controversy at the Finance bill 2021 inside the Lok Sabha, Sitharaman made the announcement regarding raising the restriction to Rs five lakh in instances wherein employers do now not make contributions to the provident fund.
The Finance bill, which offers impact to tax proposals for 2021-22, changed into accepted by way of the voice vote.
Govt. raises PF threshold limit to Rs 5 lakh for incomes tax-unfastened interest
The invoice changed into surpassed after attractiveness of 127 amendments to the proposed legislation.
The minister also harassed that tax on hobby on provident fund contribution impacts most effective 1 in step with cent of the contributors, and the final aren’t impacted as their contribution is much less than Rs 2.5 lakh in line with annum.
regarding the issues raised by means of diverse participants on better taxes on motor gasoline, Sitharaman said she would love to speak about the difficulty of bringing petrol and diesel beneath GST within the next GST Council meeting.
She additionally sought to remind participants that it was not just the Centre that taxes motor fuel and states to impose levies.
The finance minister also said rationalization of customs obligation structure could be undertaken to assist domestic companies, specifically the MSME segment.
On taxes, she emphasized the need for widening the tax base. with regards to the equalization levy, she stated this is meant to provide a degree of gambling discipline to domestic agencies which pay taxes in India.