In Budget 2021, the government imposed a tax on PF interest, the reason for this is now clearly visible. The government recently examined some accounts, which revealed that a person had Rs 103 crore in his account. At the same time, some accounts got more than 80 crore rupees.
Although the government had to face criticism for taxing PF, it shows that the rich people of the country are using PF accounts to save crores of rupees, as well as saving tax.
Shocking information revealed in the investigation
The investigation revealed shocking information about HNI (High Networth Individuals). Rs 103 crore was found in the PF account of one of the biggest deposit holders in the provident fund, followed by Rs 86-86 crore in the PM accounts of two such people.
According to the revenue department, the decision was taken after the information about the high net worth individuals came out. If more money goes into the PF account than the fixed amount every year, then it will be taxed. The aim of the government to tax PF accounts was to avoid paying any tax with the help of PF accounts.
Also, the department said that in the net worth of PF accounts of high net worth individuals, there is a total of Rs 825 crore in the accounts of the top 20 rich, while talking about the top-100 rich, more than Rs 2000 crore is deposited in PF accounts. With this help, they are saving tax and also getting fixed returns.
The rules will come into effect from April 1
This rule will come into effect from April 1. During the presentation of the budget, Finance Minister Nirmala Sitharaman had said that if an employee accumulates more than 2.5 lakhs annually in the PF fund, then the interest on it will be taxed.
At the same time, it will not affect the income of up to two lakh rupees. If Rs 5 lakh is deposited in your account every year, then interest up to Rs 2.5 lakh will be tax-free, interest on the remaining Rs 2.5 lakh will be added to taxable income.