If you’re in India and have an S$50,000 (US$4,700) worth of assets in a provident fund (PF), there are some things you need to know.
You may be shocked to learn that you don’t have to pay any PF tax if your assets are held in a foreign bank account or in a mutual fund in India. In fact, there is no PF tax on money that the government has provided as a Voluntary Provident Fund (VPF) contribution to individuals or businesses.
What this means for you is that if your assets are outside of the country where you live and work, and if they are invested in a provident fund, there is no tax liability.
This is great news for those who want to save for their retirement or invest their money into something more productive (like tech stocks!). On the other hand, if you live and work in India but hold your assets outside of the country’
What is the Voluntary Provident Fund Tax (VPF) in India?
The Voluntary Provident Fund Tax is a tax on benefits received from an individual or a family organization through a pension plan, property settlement plan, or any other type of provident fund.
It is also levied on the benefits received by the individual or family organization from any type of provident fund. You can also Know about What is VPF in details from our Blogs.
What is the Penalty for not Paying the Voluntary Provident Fund Tax?
The Penalty for not paying the voluntary provident fund tax (VPF) can be as high as 3% of the value of the benefits received from a providential fund. The Penalty increased to 5% after amendment No. 4 of 2013. Also The VPF Contribution plays an important role in over all Savings at the end of the tenure.
How to get a Voluntary Provident Fund Tax Exemption in India?
If you are an individual, you can only get a Voluntary Provident Fund Tax Exemption if you are an Individual.
If you are a family organization, you can only get a Voluntary Provident Fund Tax Exemption if your members are individuals or family organizations through a Pension Plan, a Property Settlement Plan, or a Pension Plan. However the Online EPF has some different regulations compared to the VPF.
What to do If You Get a Voluntary Provident Fund Tax Exemption in India?
Once you have filed a Claim for a Voluntary Provident Fund Tax Exemption, the Tax authorities will review your Claim and decide if you should be given a Voluntary Provident Fund Tax Exemption.
If you are given a Voluntary Provident Fund Tax Exemption, you need to take advantage of it.
If you are an Individual or a Family Organization through a Pension Plan, a Property Settlement Plan, or a Pension Plan and you have received benefits from those plans through Provident Fund (PF), Voluntary Provident Fund Tax Exemption is available to you.
You can only get a Voluntary Proviant Fund Tax Exemption if you are an individual or family organization.
However, it is important to take advantage of the Voluntary Provident Fund Tax Exemption before it expires. If not, you may need to file a Claim for a Voluntary Provident Fund Tax Exemption with the Tax authorities in order to stay exempt.
By filing a Claim for a Voluntary Provident fund Tax exemption, you will help protect your money and increase your chances of getting a Voluntary Provident Fund Tax exemption longer term.