Provident Fund Interest Sec 10(11) and Sec 10(12)

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J S BHAVSAR

CONSULTING

1015 Points Posted on 12 July 2023

In the Financial Year ending 31 March 2023, for the first time the employee contribution of VPF + EPF has crossed the Rs 2.5 Lakh limit. The extra amount is miniscule Rs 3620 and no TDS was deducted by EPFO.

Experts please help on ITR2 on entries:

1) Do we need to report Rs 3620 in ITR2 Schedule OS or only the interest is required?

2) Interest on the extra Rs 3620 is not yet credited by EPFO. How to determine the EPF interest rate for FY2022-23 and the interest amount on 3620?

3) Roughly we can assume Rs 295 as interest? Then which line in Schedule OS should I enter Rs 295 for the interest from EPFO? First Proviso or Second Proviso? And Section 10(11) or Section 10(12)?

4) Next Year even if we do not cross Rs 2.5 Lakhs limit, we need to keep reporting interest earned on Rs 3620 + 295? For that amount, which section and which line in Schedule OS? Section 10(11) or Section 10(12)? Which proviso?

By paying one year extra, this may become a lifetime headache to keep track of Rs 3620 and its interest. Very badly designed law and very bad reporting.

Please help

Replies (3)

Quick Summary

This discussion seeks clarification on reporting interest earned on Provident Fund (PF) contributions exceeding the Rs 2.5 Lakh limit for the financial year ending March 31, 2023. The user is unsure how to declare a small excess contribution and its accrued interest in ITR2, specifically concerning Schedule OS and the applicability of Sections 10(11) and 10(12). They are also seeking guidance on calculating the interest rate and determining the correct reporting lines for current and future tax filings.

J S BHAVSAR

CONSULTING

1015 Points Posted on 17 July 2023

Anyone expert can respond please? For EPFO where employer and employee both contribute to the recognised provident fund, which proviso is applicable?

Sec 10(11) is for what?

Sec 10(12) is for what?

J S BHAVSAR

CONSULTING

1015 Points Posted on 24 July 2023

I think in this forum, straight forward detailed questions never receive any answers.

Aashok Kumar Sharma

Finance/Compliance Consultant

70334 Points Posted on 04 November 2026

Principal Amount (₹3,620): Do not report as income in Schedule OS (it is just the excess principal contribution).
Interest Component: Report the calculated interest (approx. ₹295) under Schedule OS (Income from Other Sources) under the taxable PF interest provisions of Section 10(11)/10(12) provisos.
Future Tracking: Keep an eye on your EPFO passbook's bifurcated taxable contribution ledger in subsequent years to accurately report compounding interest.