New Income Tax Rules: PF accounts will be divided into two parts, govt issues notification

Name: New Income Tax Rules: PF accounts will be divided into two parts, govt issues notification
Uploaded: 2021-09-02T00:00:00.000Z
Description: The Central Government has notified new Income Tax Rules, under which the existing PF Accounts will be divided into two separate accounts.The Central Board of D

The Central Government has notified new Income Tax Rules, under which the existing PF Accounts will be divided into two separate accounts.
The Central Board of Direct Taxes (CBDT) has issued a notification in this regard.
According to the notification, a separate account will be opened in the PF account itself for the calculation of interest on PF.
After the new notification, all existing EPF accounts will be bifurcated into taxable and non-taxable contribution accounts.
According to the CBDT notification, no tax will be levied on any contribution till March 31, 2021, but interest earned on PF accounts after the financial year 2020-21 will be taxable and will be calculated separately.

Narendra Modi

Prime Minister

Nirmala Sitharaman

Central Cabinet Minister

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