Updated Feb 27, 2021 | 14:01 IST While no details have been shared as to how TDS will be applied, calculations show that if an individual's annual basic salary is close to Rs 21 lakh or more, they will come under the EPF tax net. EPF interest taxation: Here's how TDS will be calculated on interest earned on contribution beyond Rs 2.5 lakh New Delhi: Budget 2021 left some taxpayers unsatisfied as there were no rate cuts or standard deduction limit hike. This Budget has left income-tax rates and slabs unchanged. While the Finance Minister did not announce any hike in super-rich surcharge, she found a way to tax the rich and super-rich by taxing the interest earned on Employee’s Provident Fund (EPF) contributions in excess of Rs 2.5 lakh in a financial year.