PF relief may be taxing in the long term2 min read . Updated: 18 May 2020, 08:24 AM IST
- Though your in-hand salary will increase, you will be liable to pay more income tax. Also, this can dent your overall long-term retirement corpus
With the government reducing the Employees’ Provident Fund (EPF) contribution, you will now get a slightly higher in-hand salary every month for three months. But this will also mean that you will be liable to pay more income tax, and can put a dent on your retirement corpus. In order to provide more liquidity in the hands of employees and ease the cash crunch that employers may be facing, last week, the government reduced the monthly EPF contribution for both employees and employers from 12% each to 10% each for the next three months.
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