PPF
This query is : Resolved
Guest
Guest
(Querist)
02 October 2010
Can any one say about the new amendment in PPF Act that take effect from 1st September 2010
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.
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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