Your EPF account will now show taxable and non-taxable balance

Those earning high salaries should think twice before getting it restructured

Finance Minister Nirmala Sitharaman had announced in the Union Budget for 2021-22 that interest earned on employees’ annual contribution to Prov­ident Fund (PF) exceeding Rs 2.5 lakh would be taxed from April 1. The threshold was subsequently hiked to Rs 5 lakh for cases where employees alone contribute (and the employer does not).
 
The upshot of these changes is that the Employee Provident Fund (EPF) subscriber’s account will henceforth have two components — taxable and non-taxable. The Central Bureau of Direct Taxes (CBDT) on Wednesday notified Rule 9D for calculating the taxable portion of interest on contribution in excess