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Labour Laws Central Ministry of Labour and Employment Employees' Provident Funds and Miscellaneous Provisions Act, 1952

Guidelines for calculation and deduction of taxable interest relation to contribution in a provident fund exceeding specified limit

05-Apr-2022 | WSU/6(1)2019/Income Tax/Part-I(E-33306)

The EPFO has issued guidelines regarding calculation and deduction of taxable interest relation to contribution in a provident fund exceeding specified limit. As per the notification number G.S.R 604(E) dated, 31st August, 2021 related to contribution in a Provident Fund, exceeding specified limit of Rs. 2.5 lakh shall be part of taxable income of the subscriber. This will be effective: - i) All EPF subscribers and shall come into force on 1st April, 2022 for FY 2021-22. ii) TDS shall be 1st April, 2022 or final settlement or transfers, whichever is later in case of final claim settlement. iii) In the other cases not including final settlement or transfers, the TDS will be deducted on the date of credit of interest. TDS will be applicable to: (i) In case of PF final settlement, transfer claims, on transfer from Exempted establishments to EPFO and vice versa, on transfer from one Trust on another, past accumulations transfer, at the time of annual accounts processing, on back period accounting after accounts for year 2021?22 are processed. (ii) In death cases as in the case of a live member. (iii) To all EPF members including members of Exempted Establishments/Exempted Trusts. (iv) In case of International Workers.

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