The removal of tax exemption on annual contributions of ₹2.5 lakh and
above to provident fund accounts will not apply to the Public Provident
Fund (PPF), a senior official said.
“The cap is not applicable on PPF because there is already a limit of
₹1.5 lakh contribution in a year to PPF,” the official said.
The government has proposed changing taxation rules for provident funds
by levying income-tax on the interest earned on contributions exceeding
₹2.5 lakh in a financial year.
