There may be big announcements about savings in the Employees Provident Fund Scheme or Employees Provident Fund in the current general budget.
In the last budget, the government announced that up to Rs 2.5 lakh per annum could be saved in the Provident Fund.
Tax deduction will be available on that amount. The government later amended the finance bill to state that up to Rs 5 lakh could be saved in the provident fund where there would be no grant from the employer.
And it will have the benefit of tax exemption. Only government employees benefited from this announcement. Because, in their case, there is no such thing as employer contribution in provident fund. But this time before finalizing the budget, pressure has been put on the finance ministry from various organizations.
Because, this rule of the government has created inequality between public and private employees. As a result, there is a demand for equality. A source in the finance ministry claimed that the government could accept the proposal.
In case of all types of salaried employees, the upper limit of annual savings in the Provident Fund may be increased to Rs. 5 lakhs. There is no doubt that in that case the employees will get the opportunity to get a big tax exemption.