Lesser Burden: Jayant Sinha Clarifies 60% EPF Interest to be Taxed

After EPF googly and consequent backlash, government forced to clarify.

MoS Finance Jayant Sinha (Photo: PTI)

Will your contributions the Employee Provident Fund (EPF) be taxable? When that became a matter of intense speculation on Monday following FM Arun Jaitley’s Budget speech, the government was forced to ‘clarify’.

MoS Finance Jayant Sinha confirmed:

1. Only interest accrued on 60 percent contribution to EPF after 1 April 2016 will be taxed; principal amount to remain tax exempt.

2. Small salaried employees with up to Rs 15,000/month income will be kept out of purview of proposed taxation of EPF.

3. All PPF contributions will continue to remain tax exempt, no tax on withdrawal of PPF.