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 :-
- “Explanation : For the purposes of this rule-
- (a) Non-taxable contribution account shall be the aggregate of the following, namely :
- (i) Closing balance in the account as on 31st day of March 2021;
- (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
- (iii) Interest accrued on sub- clause (i) and sub- clause (ii), as reduced by the withdrawal, if any, from such account;
(b) Taxable contribution account shall be the aggregate of the following , namely :
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Notification : https://www.dropbox.com/s/mkjj4y2lspeyf15/TDS%20Circular%20dated%2005.04.2022.pdf?dl=0