13 January 2008
in a central university covered under provisions of PF Act 1925 in general & section 8(2) of it in particular, can the PF Committee of the institution declare an interest above the govt. rate for the investments made in the PF? If it is so, should tax be levied on the excess interest? (the specifics of the matter is as follows. actual returns for the financial year 06-07 work out to 12% while the govt declared return is 8% or 8.5%. )
21 January 2008
Yes, In case of approved PF fund Interest over and above the rate specified by Govt is taxable in the hand of members of trust i.e. employees of university.
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