Will tax on PF interest also cover contribution to PPF account?
Budget 2021 has proposed to levy income tax on interest earned by an employee/person on his/her contribution in excess of Rs 2.5 lakh in a financial year to a provident fund. It appears that tax will apply to the interest earned on contributions made to Employees’ Provident Fund (EPF), Voluntary Provident Fund (VPF) as well as Public Provident Fund (PPF). However, tax experts have clarified that there are separate limits for EPF/VPF and PPF i.e. contributions to PPF and EPF/VPF will not be aggregated for the purpose of calculating the Rs 2.5 lakh limit.
RBI has announced monetary policy today
Repo Rate: 4%
Reverse Repo Rate: 3.35%
The Monetary Policy Committee (MPC) decided to continue with the accommodative stance as long as necessary – at least during the current financial year and into the next financial year
Reasons for no change in rates:
- To revive growth on a durable basis and mitigate the impact of COVID-19 on the economy, while ensuring that inflation remains within the target going forward.
- Concerns around core inflation coupled with widening fiscal deficit and normalization of economic activities.
- Also to normalize liquidity and drain out the surplus funds from the market.
Petrol, diesel price at fresh high; oil company says only tax cut by government can help
Petrol and diesel price was hiked by 35 paise per litre each after a gap of a week. The increase took petrol prices to a fresh high of Rs 86.65 a litre in Delhi and to Rs 93.20 in Mumbai. Diesel rates touched Rs 76.83 in Mumbai and an all-time high of Rs 83.67.
Reasons behind increase in petrol and diesel prices:
- There has been a sudden spike in international oil prices to USD 59 per barrel in the last 2-3 days because of a perception of mismatch in demand and supply as well as cut in production by Saudi.
- Addition of central and state taxes and dealer commission to the benchmark cost of production.
Tata Power Q3 results: Net profit up 22% to Rs 318 cr on debt reduction
Tata Power on Thursday reported a 22 percent year-on-year increase in consolidated net profit for the October-December quarter at Rs 318 crore on debt reduction, better performance of the Mundra plant, and steady operational performance across all businesses.
The company’s revenue rose 7.5 percent to Rs 7,598 crore during the December quarter. Earnings before interest, tax, depreciation, and amortization (EBITDA) rose 1 percent to Rs 1,997 crore from Rs 1,970 crore in the year-ago quarter.
The company has marked a new milestone for its distribution business by acquiring the distribution and retail supply of electricity in Odisha’s five circles of WESCO and six circles of SOUTHCO.
The company is bullish on its renewables business and said its solar engineering, procurement, and construction (EPC) business continues to grow.
FM Nirmala Sitharaman sets Rs 15 lakh income cap to tax NRIs
The Finance Minister has put in place a threshold of Rs 15 lakh for the levy of tax on incomes emerging from India while leaving out global incomes from the tax ambit.