Is Interest earned on the PF Contribution taxable?
Interest earned on Employee Contribution up to 2.50 lacs in
a year is exempt from Income Tax.
Interest earned on Employee Contribution over and above 2.50
lacs in a year is treated as Taxable Income.
If there is no Contribution
by the employer to the Provident Fund, then the interest earned up to 5 lacs in
a year is exempt from Income Tax.