Why should you check your EPF contribution after salary hike2 min read 16 Jul 2022, 11:19 AM IST
As per income tax rules, if an EPFO members annual EPF contribution exceeds certain limit, EPF interest earned on amount above the given limit becomes taxable
It is more than a quarter since we entered the new financial year 2022-23. So, most of the salaried individuals would have received their salary increment letters from their employers. As expected, employees must have seen the annual hike after receiving their salary increment letter. However, they are advised to look at the monthly Provident Fund (PF) deduction as well. As per the income tax rules, if an Employees' Provident Fund Organisation or EPFO member's annual EPF contribution exceeds certain limit then EPF interest earned on the exceeding amount will be taxable. In fact, the contribution amount exceeding the limit will be taxable as well.
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