Exemption for DSOP (Defence service officers provident Fund)

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CA Vanesh Nadar

CA Vanesh Nadar (Querist)
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20 May 2010 Interest on DSOP Fund exempt under whcih section

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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21 July 2024 Interest on the Defence Services Officers Provident Fund (DSOP Fund) is exempt from income tax under **Section 10(12)** of the Income Tax Act, 1961. This section specifically provides for the exemption of interest received on the DSOP Fund.

Here are the key details regarding the exemption under Section 10(12):

- **Section 10(12)**: This section exempts any payment from a provident fund to which the Provident Funds Act, 1925 (19 of 1925), applies, or from any other provident fund set up by the Central Government and notified by it in this behalf in the Official Gazette.

- **DSOP Fund**: The Defence Services Officers Provident Fund is specifically notified for exemption under Section 10(12) of the Income Tax Act.

- **Exemption Scope**: Interest earned on contributions made to the DSOP Fund by Defence Services officers is exempt from income tax. This means that the interest income does not need to be included in the officer's total income for tax calculation purposes.

- **Conditions**: The exemption applies as long as the DSOP Fund is set up and maintained in accordance with the rules prescribed under the Provident Funds Act, 1925, or any other rules notified by the Central Government.

To benefit from this exemption, Defence Services officers should ensure that the DSOP Fund they contribute to is recognized and operated in compliance with the provisions outlined under Section 10(12) of the Income Tax Act.

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