Tax-Free Provident Fund Limit May Be Raised To Rs 5 Lakh: Report

The authorities might double the restrict for tax-free contributions in provident fund for all salaried staff to as much as Rs 5 lakh every year within the forthcoming union finances 2023-23, a report has mentioned, in an effort to deliver them at par with authorities staff.Though the federal government had within the final union finances for 2021-22 introduced capping of tax-free annual provident fund (PF) contributions to Rs 2.5 lakh for availing tax-free curiosity revenue, the restrict was later raised to Rs 5 lakh for these funds the place employers do not contribute. The restrict was raised by amending the finance invoice.However this transformation benefitted solely a small part of prime authorities officers, who contribute larger quantities basically PF. Now, in accordance with a report in The Hindustan Times, the federal government might elevate the restrict to Rs 5 lakh every year for all salaried staff.According to the report, the federal government has obtained a number of representations in direction of enabling this provision. These representations principally burdened on the purpose that for the reason that provision benefitted solely authorities staff, it must be non-discriminatory and all salaried staff must be introduced underneath its ambit.