Employees Provident Fund

Employees provident fund is a scheme under the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952. It involves the accumulation of retirement benefits through equal contributions from the employee and employer to the fund every month. It is managed by the employees provident fund organisation. The Union Budget has proposed the taxation of the interest income on contributions beyond 2.5 lakh INR in a year. The aim is to exclude the high net worth individuals from tax free interest income benefit.