03 July 2007
If a person retires, but does not withdraw his PF and interest paid to him is liable to TDS or not. Please reply at shreyanskavdia@yahoo.com
11 July 2007
In the case of Statutory Provident Fund, interest credited to the account of the employee is exempt. In the case of recognised provident fund, the interest credited to the employee account upto a limit speified [ in the current year 9.5%] is exempt. In the case of un recognised provident fund, interest credited is exempt in the year of credit, but when the balance in the fund is returned the interest on the employees contribution would be taxable under income from other sources, interest on the employers share would be taxed under the head salarie as profit in lieu of salary
CAclubindia
