Government Notifies Rules To Bifurcate Provident Fund Accounts

Central Board of Direct Taxes (CBDT) has issued the rules and separate accounts within the PF account shall be maintained.

The Centre has notified new income tax rules under which the existing provident fund (PF) accounts will be split into two separate accounts, to enable the government to tax PF income generating from employee contributions which exceed Rs 2.5 lakh annually. Central Board of Direct Taxes (CBDT) has issued the rules and separate accounts within the PF account shall be maintained. Subsequently, all existing employees provident fund (EPF) accounts will be divided into taxable and non-taxable contribution accounts.