New EPF Rule: Who will need 2 PF account? Check important dates, find out if you are one of them

Central Board of Direct Taxes (CBDT) notified the rules for taxation of the interest on the excess EPF contributions.

New Delhi: Subscribers of Employees' Provident Fund and Voluntary Provident Fund (VPF) who have PF contribution of over Rs 2.5 lakh per financial year will now have two separate PF accounts. Finance Minister Nirmala Sitharaman had announced, in this year's budget, that PF contribution of more than Rs 2.5 lakh in a fiscal will be taxable. In line with the decision, recently, the Central Board of Direct Taxes (CBDT) notified the rules for taxation of the interest on the excess EPF contributions. "For the purpose of calculation of taxable interest under sub-rule (1), separate accounts within the provident fund account shall be maintained during the previous year 2021-2022 and all subsequent previous years for taxable contribution and non-taxable contribution made by a person," it said.