The government may raise the tax-free reserve fund limit in the upcoming budget
The government may double the tax-free contribution limit in the contingency fund for all salaried workers to Rs 50,000 per year in the upcoming union budget from 2022-23, a report said. , to put them on a par with government employees. .
Although the government has in its final union budget for 2021-22 announced a tax-free annual reserve fund (PF) contribution limit of Rs 2.5 lakh for interest-free income. tax, the limit was later raised to Rs 5 lakh for those funds where the employer did not contribute. The limit was raised by amending the finance bill.
However, this change only benefits a small portion of the highest-ranking government officials, who contribute higher amounts to the RP as a whole.
Now, according to a report in Hindustan Timesthe government can raise the limit to Rs 5 lakh per year for all salaried people.
According to the report, the government has received a number of representatives towards supporting this provision. These statements essentially emphasize the point that since the provision benefits government employees only, it must not discriminate and all wage earners must be included in the regulation. its.
