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Calculation and deduction of taxable interest relating to contribution in a provident fund exceeding specified limit

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Apr 11, 2022 #EPFO
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Date : 05.04.2022

To

All AddI. CPFC (Zones),
All Regional P.F. Commissioners
Incharge of Regional Offices.

Madam / Sir,

In pursuance of the notification issued by Department of Revenue (CBDT) dated 31st August 2021, the interest relating to contribution in a Provident Fund, exceeding specified limit of Rs. 2.5 Lakh shall be part of taxable income of the subscriber.

(2) Relevant provisions of Law :

The relevant para of the notification under reference is reproduced as under :-

  1. “Explanation : For the purposes of this rule-
    1. (a) Non-taxable contribution account shall be the aggregate of the following, namely :
    2. (i) Closing balance in the account as on 31st day of March 2021;
    3. (ii) Any contribution made by the person in the account during the previous year 2021-2022 and subsequent previous years, which is not included in the taxable contribution account; and
    4. (iii) Interest accrued on sub- clause (i) and sub- clause (ii), as reduced by the withdrawal, if any, from such account;

    5. (b) Taxable contribution account shall be the aggregate of the following , namely :

To Read More….
Click the link below….

Notification : https://www.dropbox.com/s/mkjj4y2lspeyf15/TDS%20Circular%20dated%2005.04.2022.pdf?dl=0

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