Zee Media Bureau
New Delhi: It is likely that Budget 2016 may force you to scout for other investment options, and not park a large sum in your Provident Fund account.
The Finance Ministry is mulling on introducing penalties on PF investments beyond the limit of Rs 1.5 lakh . Though one can avail the benefit on tax under Section 80 C of the Income Tax Act on the PF deposits up to 1.5 lakh per annum, one is free to deposit more and keep earning high tax free interest on the money invested.
As per The Hindu report, Finance Ministry wants to change people’s investment preferences and nudge them towards the relatively new National Pension System (NPS) administered by the Pension Fund Regulatory and Development Authority (PFRDA.
The report added that one alternative being considered is to offer a lower interest rate on investments over Rs 1.5 lakh.