New PF Rules 2021 | TAX on PF Interest in Budget 2021 | PPF / EPF / VPF New rules 2021 | 2.5 Lakh

as Govt introduced a new bracket of 2.5Lakh in vpf, is it still advisable to contribute 88% of remaining basic salary to vpf aiming towards a large corpus comparing to other govt schemes like ppf or nps?
Looking for your financial advice 😊

Respected Sir

I am an employee and my Basic Salary (including DA if any) is Rs.68000 per month as per my appointment letter. My Employer has said that as per their policy they can deposit the employer’s share only 12% of Rs.15,000 as per PF Act (i.e. Rs.1,800 per month). My employer don’t want to contribute their share more than the statutory requirement.

Now, as an employee I want to contribute more amount i.e. 12% of Rs.68,000 = Rs.8,160 per month. So, as per above arrangement my employer’s share is Rs.1,800 (12% of Rs.15000) and employee’s share is Rs.8,160 (12% of Rs.68,000). Whether the above is possible every month? This is my first question.

Also, besides above, I want to additionally contribute 88% of my basic of Rs.68,000 towards Voluntary Contribution(VPF).

Thus, the total per month PF contribution as per above would be –

A) Employer’s share 1,800 (12% of Statutory basic Rs.15,000 ceiling)
B) Employee’s Share 8,160 (12% of actual basic Rs.68,000)
C) Voluntary Contribution by employee 59,840 (88% of actual basic Rs.68,000)

Thus, the total per month contribution to PF = 69,800 (A+B+C)

So, my 2nd question is whether my total deposit in PF account of Rs.69,800 is possible as per PF rules?

If the above is possible the kindly let me know under which Section Number or Rule Number the above contribution is possible.

Kindly reply on the above at the earliest and oblige

thanks for this info
Sir, suppose my EPF employee contribution is 1lacs and I will contribute in VPF 1.5lacs, also I am planning to invest 50K in ELSS. Then will I get total 3lacs tax benefits? means as per 80C only 1.5lacs will be exempted but as I investing on VFP. Shall I get extra 1.5 lacs tax exemption over and above 80C (1.5lacs)?

EPF can't be 12% of basic...Its maximum 1800 which is 12% of 15000/- doesn't matter whatever high your basic is...

VPF is something 12% of basic you can apply

Sir,
Can I invest more that 1.5lakhs rs in my PPF account?
Regards

Good Thanks!

Sr 30% tax q lgaya??

this is all bullshit.
she is talking about people putting 1 crore monthly but setting limit 2.5 lakh yearly.
this utter nonsense bu this lady.

Thank you!

Kya hum pf ka upar lon la सकते है

First of all nice and informative video...👍
And I've also have one doubt... Who is responsible for collect the tax for this from the employee... Is it employer or employee.. when will they need to pay the tax. Before getting interest or after getting interest at the end of financial year... Kindly answer this question.. thanks in advance...

Now increased to 5 lakh

Dear Sir, thank you so much , many questions are still not answered
1) are there any tax interest on interest?
2) what about the previous PF balance, suppose if someone have 40 lac as PF balance, that will earn compound interest , will that be taxed?
3) is tax only applicable for the amount accrued from april 1 2021 ?

कुछ लोग एक करोड़ से अधिक vpf में जमा करते है इसलिए सितारमन जी मेरी पिटाई करेंगी, जबकि मेरी साल भर की सैलरी 7 लाख मात्र है।

Very informative. Thanks for saving us.

Idiot FM !

i hve gpf rs 25 lakh....will it be taxable after 30 lakh amount...at retirement nxt 2 yrs

is it apply to PPF also if a person contribute 2.50 in Provident fund and 1.50 lakh in PPF.

How the tax amount will be deducted??From salary or from pf/vpf interest??

nice

Sir i am state government employ I contribute 35000 per month in GPF. Can I come in this tax provision

will you throw some light on PPF account. will it also come under 2.5lakh limit

Sir...mera pension balance 30,000 he.
Lekin mera pan card approved nhi hua h.

Toh agar main pension amount withdraw kru... toh kya tax katega?

Sir what about from next year when i have already made an wxtra contribution of 50k and earned interest @ 4.85%. Will this be taxable in the next financial year also??

Very well explained 👍

Good video . Thank you .

Mera gpf hai ,govt job hai 2,40000 rs annual jama krti hu kya is par bhi tax hai

Good video. I have below three queries which no one covered in videos
1) if I am putting 4 lakh rs in PF then I have to pay tax on interest of whole 4 lakh or just 1.5 lakhs? - Here as per your video, I have to pay tax on additional 1.5 lakh interest.
2) what will be the tax slab. Currently i am on 20% tax slab then I have to pay of interest tax as per 20% slab?
3) suppose I am happy to pay tax on 1.5 lakh interest in current year then will I need to pay same tax next year also. If not then govt will pay interest on 4 lakh next year then may ask to pay tax every year.

We already paid tax before it comes to our account and again tax for investment? Opposition has no balls to fight on this matters

Is it 30% or 10%(4250) , just cross verify afain

Thanks very much for the clarification.

Very bad
Worst finance minister
They should roll back this

Sir sip ,occupation may select kharna government employee/propssional kon sha sir

Will PPF also considered under 2.5 Lacs?

Please clear that if a defence personnel who contribute more than 2.5 lakh in PF where employer is not contributing anything. He will be taxed on interest or not??

👍👍👍👏👏👏

thanks for taking efforts in putting this, there is not much clarity about this new rule in general. That 31.2% tax on interest, is it considering that individual already is in 30% bracket? Also how did you get effective %?

Hi, in case where pf contribution is 300000, you said tax has to be paid on 50000x8.5%= rs 4250.
But it is a flat interest calculation.
One shall be consuming the limit of 2.5 lk in first ten months. Then in the rest of the two months, one has exceeded the limit. So, logically, one should pay tax upon two month interest of 25k @8.5% and one month interest of 25 k @8.5%.
PF contribution is done incrementally each month. The entire amount is not credited at one go. So the interest calculation should also be done at a compound rate not flat rate. Please clarify this.
This is going to be an interesting calculation.
Additionally, what about the incurred interest on accumulated sum, that contains previous years interest as well.
Even if they tax it once at the year of income, they (govt) can not partition the total sum further easily. They don't have provision to put tax on the interest earned on interest. Atleast for now..But going by the intension, I would not be surprised if the total interest earned also become taxable.
1. So the question is how the interest on 50k would be calculated?
2. Once the additional interest is taxed, will this amount be further partitioned?
So that interest earned on this exceeded interest can be treated/identified as a income head?
Otherwise, one would not mind paying tax only on the year of income.. because the interest on interest will be tax free.

sir PPF par b tax ha kya ??

sir PPF par b tax ha kya ??

First view sir