As per Union Budget for 2021–22, interest earned on Provident Fund contribution above ______ lakhs in a year will become taxable.
Show answer & explanation
Correct answer: D
Explanation
The correct answer is option 4 i.e. ₹2.5
Other Information-
- As per the Union Budget for 2021-22, interest earned on provident fund contributions above Rs 2.5 lakh in a year will become taxable.
- Interest earned on employee's contribution to provident fund account will be taxed if the contribution amount exceeds Rs 2.5 lakh in a financial year.
- In the 2020 budget, the tax exemption on employer's contribution to PF, NPS and superannuation fund has been raised by the finance ministry to over Rs 7.5 lakh per annum.
- In the budget, an expenditure of Rs 2,23,846 crore has been kept in health and welfare in the financial year 2021-22, while it was Rs 94,452 crore in 2020-21. This shows an increase of 137 percent.