New Delhi: Finance Minister Nirmala Sitharaman has presented the Union Budget 2021-22 on 1 February. In this budget, it is proposed to tax PF interest on the amount received above an annual limit. According to the proposal, now the interest earned on the amount of more than 2.5 lakhs in the annual PF contribution of the employee will be taxed.
Finance Minister Nirmala Sitharaman has proposed to bring the interest of PF contribution of Rs 2.5 lakh or more per year from the new fiscal year starting April 1 to tax.
The government has given relief to senior citizens in the budget. Under this, senior citizens aged 75 years and above will not be required to file income tax returns for pension income and interest from term deposits for the financial year beginning April 1. However, for this benefit it is necessary that pension and interest income fall in the same bank.
