The authorities could double the restrict for tax-free contributions in provident fund for all salaried workers to as much as Rs 5 lakh each year within the forthcoming union funds 2022-23, a report has stated, with the intention to convey them at par with authorities workers.
Though the federal government had within the final union funds for 2021-22 introduced capping of tax-free annual provident fund (PF) contributions to Rs 2.5 lakh for availing tax-free curiosity revenue, the restrict was later raised to Rs 5 lakh for these funds the place employers do not contribute. The restrict was raised by amending the finance invoice.
However this alteration benefitted solely a small part of prime authorities officers, who contribute increased quantities on the whole PF.
Now, based on a report in The Hindustan Times, the federal government could elevate the restrict to Rs 5 lakh each year for all salaried workers.
According to the report, the federal government has acquired a number of representations in the direction of enabling this provision. These representations principally careworn on the purpose that because the provision benefitted solely authorities workers, it must be non-discriminatory and all salaried workers must be introduced underneath its ambit.