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What is the new limit of EPF contribution up to which interest would be tax exempt, as per the amendments made in the Finance Bill 2021?
A)
Rs 3 lakhs
B)
Rs 4 lakhs
C)
Rs 5 lakhs
D)
Rs 10 lakhs

Correct Answer :   Rs 5 lakhs


Finance minister Nirmala Sitharaman has recently increased the deposit threshold limit to ₹5 lakh per annum in Employee provident fund (EPF), for which interest would be tax-exempt, if there is no employer contribution.
During the Budget 2021, the Minister announced that interest earned on the EPF contributions above ₹2.5 lakh will be taxable from 1 April.

Published On : March 28, 2021
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