Interest on employee's contribution to PF. 2.5 lakh per year is taxable

Interest on employee's contribution to PF. 2.5 lakh per year is taxable

Interest earned on any contribution to the recognized provident fund of more than 2.5 lakhs per annum earned by an employee will be taxable from April 1, the government announced in the budget. Further, for unit-linked insurance plans (ULIPs), funds sold from February 1 onwards, the maturity amount of policies with premiums exceeding 2.5 lakhs/year will be taxed at par with equity mutual funds.