Budget
Govt may raise tax-free PF contribution limit to Rs 5 lakh for all salaried employees: Report
New Delhi/IBNS: In good news for salaried employees, the government may double the limit for tax-free contribution to the provident fund for salaried employees up to Rs 5 lakh per annum in the forthcoming Union budget 2022-23, in order to bring them at par with government employees.
Earlier, the government had raised the cap of tax-free annual provident fund contributions for availing tax-free interest income from Rs 2.5 lakh, stipulated in the union budget 2021-22, to Rs 5 lakh for those funds where employer's don't make contributions, by amending the finance bill.
However, this helped only a small section of government employees, mostly in higher ranks, who make higher contributions to General Provident Fund (GPF), a facility available only for government employees.
Now, the government may raise the limit to Rs 5 lakh per annum for all salaried employees, following representations by several tax experts, according to Hindustan Times.
According to the representations, the government should extend the 5 lakh cap for salaried employees to benefit all salaried employees as enabling this provision only for government employees is discriminatory.
Support Our Journalism
We cannot do without you.. your contribution supports unbiased journalism
IBNS is not driven by any ism- not wokeism, not racism, not skewed secularism, not hyper right-wing or left liberal ideals, nor by any hardline religious beliefs or hyper nationalism. We want to serve you good old objective news, as they are. We do not judge or preach. We let people decide for themselves. We only try to present factual and well-sourced news.
