Be Prepared for These 8 Rule Changes on EPF Coming into Effect on July 1,2023

 

8 Rule Changes on EPF Coming into Effect on July 1,2023

Eight key rule changes from July 1

As the new financial year begins, several key changes will come into effect from July 1. These changes will affect a wide range of taxpayers, businesses, and individuals.

Here are eight of the most important rule changes to be aware of:Increased PF contribution: 

• The Employees' Provident Fund (EPF) contribution will increase from 12% to 12.5% for both employers and employees. This is the first increase in the EPF contribution rate in 40 years.

• PAN-Aadhaar linking deadline: The deadline for linking PAN with Aadhaar has been extended to March 31, 2023. However, taxpayers who fail to link their PAN and Aadhaar by this deadline will face a penalty of Rs. 1,000.

• Increased surcharge on income tax: The surcharge on income tax will increase from 10% to 15% for individuals with taxable income of more than Rs. 50 lakh.

• New rules for EPF withdrawal: The rules for EPF withdrawal have been tightened. From July 1, 2023, only those employees who have completed five years of continuous service will be able to withdraw their EPF balance.

• Changes to the TDS regime: The TDS (tax deducted at source) rates for certain payments have been changed. For example, the TDS rate on rent has been increased from 10% to 15%.

• New rules for GST registration: The rules for GST registration have been simplified. From July 1, 2023, businesses with an annual turnover of up to Rs. 40 lakh will be able to register under the Composition Scheme.

• Increased penalties for GST violations: The penalties for GST violations have been increased. For example, the penalty for non-filing of GSTR-3B returns has been increased from Rs. 200 to Rs. 500.

• Changes to the NPS (National Pension System): The rules for the NPS have been changed. From July 1, 2023, the minimum contribution to the NPS will increase from 5% to 10% of the basic salary.

These are just some of the key rule changes that will come into effect from July 1. It is important to be aware of these changes so that you can comply with the law and avoid any penalties.