New PF tax rule from this month: How it will impact you

“The amendment increasing the tax free interest on PF contribution of upto Rs. 5 lakh would provide some respite to the large tax payers. However, this has come with a rider wherein the increased limit is applicable only in cases where the employee has contributed to a fund in which there is no employer contribution. In most of the cases, employees voluntarily increase their contribution to the same fund in which employer contributes their share,” clarified Divakar Vijayasarathy, founder and managing partner, DVS Advisors LLP.