The ministry said this in response to a tweet by IT veteran TV Mohandas Pai, who raised questions about interest in the Employees' Provident Fund deposits. The tax on interest on contributions over Rs 2.5 lakh per annum was introduced in the year 2021 -- 22 April-March. In her budget for 2021 Finance Minister Nirmala Sitharaman, Finance Minister Nirmala Sitharaman said that interest on employee contributions to provident funds over Rs 2.5 lakh per annum would be taxed from April 1, 2021 on PTI inputs.