Taxation on EPF - can someone explain how it's gonna work?

[fransiskus]

@svs1957 Interest on contribution above 2.5L/year is taxable.. Assume you invested 8.4L in April 2021-March 2022 in PF, the interest on (8.4-2.5=)5.9L will be taxable.

EPFO has said they will create 2 separate PF accounts, one till 2.5L/year and remaining for the excess to enable this calculation. But have not seen anything happening. Not sure how this will actually work since the EPF interest rate is declared quite late in the year (after the tax filing deadline)

 

[resjudicata]

@svs1957 Even Nirmala Chachi doesn't know how it will work. She just announced it

 

[robmac76]

@svs1957 How much do you earn to get 70k per month just from EPF?

 

[xamell]

@robmac76 It depends on salary structure of company. Generally i have observed basic salary to be 40-50% of base salary. By that calculation OP will have around 70L-87.5L base salary

 

[fransiskus]

@xamell Could be much, much more.. For example, I have an annual income of about 70L, but the breakup is Base : 16, Special allowances : 16, RSU's : 40L

Many tech companies take this route