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Guest (Querist)

02 October 2010 Can any one say about the new amendment in PPF Act that take effect from 1st September 2010

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)

02 October 2010 I don't think that there is an amendment in Providend Fund Scheme,1968 w.e.f 1/9/2010. But there is a change in the Recognized Provident Fund relating to the interest rate. The change is as follows:-
The labour ministry has hiked the employees’ provident fund, or EPF, rate to 9.5%, but a finance ministry notification says that anything in excess of 8.5% will be taxed.
But even before the EPF board met, the Central Board of Direct Taxes had notified a tax-free PF rate of 8.5% for 2010-11 — effective from September 1,2010. This means that the 1% extra income would be fully taxable. This would become the first time ever that income from provident fund would become taxable unless a conseqential amendmend is introduced in the Direct Tax Laws.

Guest

Guest (Querist)

03 October 2010 Thank U very much......

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