PF Withdrawal Rules Changed: Big relief to the EPF employees! PF withdrawal will now attract less tax, Big changes in these schemes also

EPFO Withdrawal Rules: Before withdrawing money from PF account, know whether you will have to pay tax
EPFO Withdrawal Rules: Before withdrawing money from PF account, know whether you will have to pay tax
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In the budget, the government has tried to give relief to every section. In the Senior Citizens Savings Scheme, the maximum investment limit has been increased to Rs 30 lakh, while it has been announced to start ‘Mahila Samman Scheme’ for women. Apart from this, now less tax will have to be paid on withdrawing PF without PAN. We are telling you about the changes and new schemes in the budget.

Now less tax on withdrawing PF without PAN

There has been a change in the tax rules regarding withdrawal from Provident Fund (PF). Now TDS will be 20% instead of 30% during withdrawal if PAN is not linked. This rule will come into effect from 1 April 2023. The changed rule will benefit those PF holders, whose PAN is not yet updated.

KYC process will be easy

Financial market expert Sucheta Dalal says that the budget aims to simplify the KYC process. In the coming days, the government will make the process of KYC easier. KYC process will be done on the basis of risk.

In the budget, the Finance Minister said that the government will make changes in the Banking Companies Act, RBI Act, IFSC Act. KYC process will be simplified on ‘risk basis’ instead of ‘one size fits all’ approach. Financial sector regulators will be encouraged to develop KYC processes to meet the needs of Digital India.

Income of up to 31 thousand every month on deposits to senior citizens
Senior citizens can now invest up to Rs 30 lakh in the savings scheme. Earlier, only a maximum of Rs 15 lakh could be invested in this scheme. 8% interest is being given annually in this scheme.

Apart from this, senior citizens will now be able to invest a maximum of Rs 9 lakh in the Monthly Income Scheme. Spouse can also deposit the same amount and deposit 15 lakhs in a joint account. This scheme is getting 7.1% annual interest.

In this case, on depositing Rs 30 lakh in the Senior Citizens Scheme, you will get interest of Rs 20,000 every month and on depositing Rs 18 lakh in the Monthly Income Scheme, you will get Rs 10,650 every month. Will meet. That is, if you invest in both these schemes then you can earn 30,650 every month.

2 lakh in Mahila Samman Scheme. 7.5% interest on investments up to

The ‘Mahila Samman Savings Certificate’ has been launched in the budget with an interest rate of 7.5%. Women will be able to deposit a maximum of Rs 2 lakh for 2 years. At present, even 78% working women in the country do not even save 20% according to the Golden Rule of Saving. The scheme of 2 lakh rupees will benefit 30 thousand rupees in two years.

No tax on converting physical gold to e-gold

Conversion of physical gold into e-gold or e-gold into physical gold shall not be treated as transfer. Capital gains tax will not be applicable. Till now there was 20% tax on selling gold after 3 years of purchase and 4% cess on long-term capital gains. Customs duty on gold and imitation jewelery increased from 20% to 25%, on silver from 7.5% to 15%. As soon as the duty increased, the price increased in the Indian market.

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