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As per current law, an employee's own contribution to the EPF account is not taxable. However, effective from April 1, 2020, the employer's contribution to the EPF account is taxable if it exceeds Rs 7.5 lakh in a financial year. Thus your employer contribution above Rs. 7.5 lakhs will be taxable. But the point which should be noted here is that this contribution is to be calculated on an aggregate basis. For example, Suppose an employer in a financial year contributes Rs 1 lakh to the superannuation fund, Rs 5 lakh in NPS, and Rs 2 lakh in the EPF account. This is a total contribution of Rs 8 lakh, i.e., it exceeds the Rs 7.5 lakh tax-exempt limit by Rs 50,000. Thus, an employee is liable to pay tax on the excess contribution.

Now taking about, Interest on PF -

Effective from April 1, 2021, if an employee's own contribution to the EPF account along with excess contribution via Voluntary Provident Fund (VPF) exceeds Rs 2.5 lakh in a financial year, then the interest earned on excess contributions will be taxable in the hands of an employee.
However, in case there is no employer contribution to the EPF account, which is usually the case for government sector employees, then interest will be tax-exempted for the employee's own contribution to the EPF account, which is usually the case for government sector employees, then interest will be tax-exempted for the employee's own contribution up to Rs 5 lakh in a financial year.

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