Provident fund rule amended
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The Finance Ministry today announced an amendment into the provident fund regulations, exempting taxation on the saved amount for premature membership termination.
The exemption is applied when members quit their companies before the age of 55 and agree to keep the saved amount with the companies' provident funds. Before that, they were forced to leave with the saving, which are subjected to individual income taxation.
Such exemption has been applied with members whose membership is terminated by death or disability.
