EPFO Issues New Guidelines: Check How PF Contributions Above Rs 2.50 Lakh Will Be Taxed

The circular said the TDS will be deducted when the interest is paid to an EPF account.

The Employees Provident Fund Organisation (EPFO) has released new guidelines on the tax deduction for employees in the private sector whose contribution to the retirement savings account is more than Rs 2.50 lakh, annually.

In a circular, the EPFO said that the taxation threshold for EPF contribution for government employees would be Rs 5 lakh annually. This taxation regime has come into effect from April 1 this year. It is mandatory for employees across India to have an EPF account.

The circular said the TDS will be deducted when the interest is paid to an EPF account. For those pending final settlement or transfers, TDS will be deducted at a later date during the final settlement.

What else do the new guidelines mean?