Great confusion please help

HELLO CCI MEMBERS,

I HAVE BEEN FACING GREAT CONFUSION IN TAXATION. ON RPF INTREST EXEMPTION RATE. IN GIRISH AHUJA IT IS GIVEN THAT IT WILL BE EXEMPT UPTO 8.5% AND IN EXCESS WOULD BE INCLUDED IN GROSS SALARY. 

I WANT TO KNOW EXACTY IS IT 8.5 % OR 9.5% 

AND WHAT RATE WOULD BE APPLICABLE FOR NOVEMBER 2011 ATTEMPT IPCC.

BECAUSE IN GIRISH AHUJA 25TH EDITION ASSESSMENT YEAR 2011-12 QUESTIONS ARE SOLVED WITH 8.5 %

PLEASE HELPPPPPPPPP

Replies (10)

excess of interest over 9.5% is taxable.

it is given in V.K.SINGHANIA

Interest credited to RPF:

Exempt from tax if rate of interest does not exceed notified rate of interest

(i.e., 9.5 % before september 1,2010 and 8.5 % with effect from September 1 , 2010 )

excess of interest over notified rate of interest is taxable

 

Source : Vinod K. Singhania

45th edition 

2011-12
 

in V.K.singhania it is given 8.5%

44th edition A.Y. 2011-2012

yes. it depends on the dates as was mentioned earlier

 

Long awaited notification now released. Govt has notified exemption on interest rate on EPF to 9.5 % . Earlier EPFO has declared 9.5 % interest rate for Fy 2010-11,but in income tax act rate notified was Just 8.5 % so as per act 1% additional interest was taxable in hands of Employees but after this notification Interest earned from EPF is full exempted.


 

i think it is 9.5%                                                                     

i think for nov 2011 attampt we should adopt 8.5% , every body pls share their own views on this issue. bcoz realy it is confusing

for nov 2011 , wich rates we need to follow is it  2011-12 assesmnet year rates?

Hey hi sanju @ whch rates applicable for may2011 is applix same for nov 2011 also.....nthg 2 worry abt amendaments whats al for may is same 4 nov.....al d best

ya this is of great confusion but i think it is 8.5% because in latest editions questions are solved with 8.5%

any other views please post

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