[whitewing]

Originally Posted by warrioraks

No. This is only for EPF.

PPF continues to be tax-free with a max permissible contribution of 1.5 lacs per fiscal year.

A basic doubt on this, is the tax limited to the PF contributions or does it include the interest component as well?

Is the tax on the interest payable on year of payment or we need to pay tax on the subsequent accumulation?
ex:
Year 1 - deposit amount =2,50,100 => Taxable 100 amount
Year 2 - deposit amount =60,000 => no taxable amount
Interest earned =2,00,000
Would this mean 10k become taxable? Since the net yearly addition to the account is 2,60,000.
Also, would the interest component due to previous year's taxable component of the contribution(rs 100 in above case) be taxable => (say @8%) Rs8

[warrioraks]

Originally Posted by whitewing

A basic doubt on this, is the tax limited to the PF contributions or does it include the interest component as well?

Post 955 and 956 of this thread should clarify.

Originally Posted by whitewing

Also, would the interest component due to previous year's taxable component of the contribution(rs 100 in above case) be taxable => (say @8%) Rs8

As far as I know, the answer is yes. The PF authority plans to split the contributions to three different accounts (internally):
1. Employer contribution (A) - Tax free without any limit
2. Employee contribution up to max of 2.5 lacs (B) - Tax free
3. Employee contribution over and above 2.5 lacs (C) - Taxed like an FD

To take an example, assume employer and employee contribution is 3 lacs each for a fiscal year. This is how it will work:

Account A - 3 lacs (tax free)
Account B - 2.5 lacs (tax free)
Account C - 50k (interest taxed like FD for current and future years)

[NPV]

Originally Posted by warrioraks

Please read this, should clarify.

https://freefincal.com/how-employee-...xed-like-a-fd/

Don't know why even mainstream media newspapers like Indian Express keep saying PF interest above 2.5 Lakh a year will be taxable

[karan0009]

Just checked EPF passbook and interest is still not credited for the year 2019-2020. Shall I register a complaint or wait ?

[DigitalOne]

Originally Posted by karan0009

Just checked EPF passbook and interest is still not credited for the year 2019-2020. Shall I register a complaint or wait ?

I raised a grievance for the interest not credited issue yesterday. And the prompt reply is :

Proposed Final Decision :Please wait for technical resolution

So I am now waiting for "technical resolution" whatever that means .

This is KR Puram EPFO, Bangalore.

[NPV]

Originally Posted by karan0009

Just checked EPF passbook and interest is still not credited for the year 2019-2020. Shall I register a complaint or wait ?

This could be a reason as well.


KYC holds up EPF interest for 4 mn - Link

[Funny]

From the EPFO portal, I had made a transfer claim to transfer the respective amounts from my previous employer to my current member ID. The claim was rejected with the below remarks:
Your Claim has been rejected due to : 1) PENSION CONTRIBUTION DEPOSITED WRONGLY AS WAGES ABOVE RS. 15000. CLARIFY IF PREVIOUSLY EPS MEMBER 2) FATHERs NAME DIFFERS

For point number 1, I have been a EPS member from the start of my service. For point number 2, I may have included my father's middle name previously and currently my father name is updated without middle name.

I do not see any way to resolve this issue through the portal. I tried calling up the toll-free number but it doesn't connect. The landline of the nearest EFP office (KR Puram) also goes unanswered.

Has anyone faced similar issue? If so, what needs to be done to rectify this issue?

[swoosh]

Originally Posted by Funny

Has anyone faced similar issue? If so, what needs to be done to rectify this issue?

If you have any govt id matching with EPF name, you can upload it EPFO website. Ideally, the name should exactly be the same in EPF, govt id address proof, and claim form. I had issues with my last name and I managed to fix it before initiating a claim.

[fordday]

PF interest rate 8.5% retained for 2020-21.

In this gloomy interest rate era, this is good news. Link

[Manoj2268]

In my EPF account, there is a mismatch between the DOJs in the EPF and EPS column.

Is there any way to correct the same?

[m8002?]

https://www.rediff.com/money/report/...h/20210323.htm

Looks like they increased the exemption from 2.5 lacs to 5.0 lacs.

[V.Narayan]

Originally Posted by m8002?

https://www.rediff.com/money/report/...h/20210323.htm

Looks like they increased the exemption from 2.5 lacs to 5.0 lacs.

Question for the experts - does this mean we can open a public provident fund account in say State Bank of India and deposit up to Rs 5 lakhs a year into that account and get tax deduction benefit on the deposit as well as tax free interest income? Thanks in advance for your help.

[sunilch]

Originally Posted by V.Narayan

Question for the experts - does this mean we can open a public provident fund account in say State Bank of India and deposit up to Rs 5 lakhs a year into that account and get tax deduction benefit on the deposit as well as tax free interest income? Thanks in advance for your help.

1) W.r.t to Tax Deduction - it is limited to 1.5L p.a as it falls under section 80C only.

2) Not sure if you are allowed to open an account with EPFO on your own. I doubt you can. This mostly refers to a case where the pay structure is such that the employer is not required to contribute and hence they won't. But you still will have to open the EPFO account only as an employee somewhere.

Experts can shed more light.

[V.Narayan]

Originally Posted by sunilch

1) W.r.t to Tax Deduction - it is limited to 1.5L p.a as it falls under section 80C only.

2) Not sure if you are allowed to open an account with EPFO on your own. I doubt you can. This mostly refers to a case where the pay structure is such that the employer is not required to contribute and hence they won't. But you still will have to open the EPFO account only as an employee somewhere.

Experts can shed more light.

Dear @sunilch, thank you for taking the trouble with your reply. I am not an employee so I am referring to the regular Public Provident Fund. What I hear from you the limit there for tax deductability continues to be Rs 1.5 lakhs. Can I open a PPF account and deposit say Rs 7 lakhs a year into it? - are we allowed to deposit over Rs 1.5L a year? If yes do we get interest at PPF's good rates for the entire amount or for only the Rs 1.5L. Many thanks in advance.

[sunilch]

Originally Posted by V.Narayan

Dear @sunilch, thank you for taking the trouble with your reply. I am not an employee so I am referring to the regular Public Provident Fund. What I hear from you the limit there for tax deductability continues to be Rs 1.5 lakhs. Can I open a PPF account and deposit say Rs 7 lakhs a year into it? - are we allowed to deposit over Rs 1.5L a year? If yes do we get interest at PPF's good rates for the entire amount or for only the Rs 1.5L. Many thanks in advance.

No, PPF has a hard limit of 1.5L per account even for deposits.

W.r.t what happens when you end up depositing more than 1.5L? - i am not sure as I have never tried but it is clear that you will not get interest on that amount. Either the bank will return the funds/reject the deposit. Or if they do accept it (owing to lack of processes/checks at their end), the money will not earn interest.

However, you can open more than 1 PPF accounts for different dependent family members at home and deposit 1.5L in each. All of those will earn interest and will be tax exempt at withdrawal/maturity. But your tax exemption limit will still be 1.5L as only you will be allowed to claim the tax exemption and not the dependents.