Finance Minister Nirmala Sitharaman gave a big relief in filing income tax returns for senior citizens above 75 years of age with pension and interest income, but the Narendra Modi government of the Center gave a big shock to those who deposited more money in PF for old age is.
The 2021-22 budget has dealt a big blow to those who used to take advantage of income tax exemption by depositing more money in PF. The Modi government has abolished this exemption in its latest budget. In the 2021 budget, under Section 10 (10D) of ULIPs, it is proposed to remove the tax exemption on a premium of more than 2.5 lakh rupees in a year.
Now, tax has been abolished on the interest accrued by depositing two and a half lakh or more in PF in a year. However, this will affect those whose salary is more. It can be understood in this way that if a person deposits 21 thousand or more PF every month, then he will have to pay tax. However, if there is a contribution of 20 thousand or less, there will be relief from tax.
New wedge code is also going to come from April 1 this year. In which basic salary should be at least 50 percent of a person’s total income. After this new rule, the salary structure will also change. After which the contribution to PF will also increase.
Here after this announcement of the Modi government, there is also a response in social media. One user wrote, when the Finance Ministry had kept 8.5 percent interest rate in the EPF, I was surprised to see the state of the economy. Now revealed. At Rs 2.5 lakh, the interest will now be in the tax net. That is, given with this hand, taken with that hand.
