Rate of interest on rpf

IPCC 1597 views 6 replies

Dear Friends.....Plzzz tell me the Rate of Interest on RPF applicable for Nov 2011 exams while calculating Income from salary?

It is 8.5% or 9.5%. Plzzzz let me clear this.. i'm very confused.  Thank u..

Replies (6)

its both dear

exempt from tax if rate of interest doesnt exceed notified rate of interest(i.e. 9.5% before september 1,2010 and 8.5% from september 1,2010) excess of this is taxable

and this is amended provision

@ Madina:

Please note that the rate of interest on PF balance is now 9.5%. If it exceeds beyond that it is taxable. Please refer RTP for the same. Before this, there was a notification saying 8.5% rate of interest w.e.f. Sep 1, 2010, beyond which is taxable. But this now superceded by 9.5% rate of interest.

The implication of this amendment as on today stands as below:

If an employer credits interest @ 10% for the PY 2010-11 to the balance standing in the account of employee, then excess interest i.e.0.5% (10% - 9.5%) would be included in the total income of the employee for that year. Hence, there is no point of 8.5% rate now. Throughout the year 9.5% is applicable now as per latest amendment. Beyond which is taxable. Mr Rishi kindly observe the latest amendment.

The notification regarding interest came on 13 may 2011 qnd ammendments are relevent only upto april 30 2011 for nov 2011 exams.

 

Just follow 1 rate either 8.5 or 9.5 and give a  note

 

As per the amendment given in IPCC RTP, we have an option now to follow only 9.5% rate of interest. In my view, following other than this will fetch negative marks. Following the RTP and referring to latest amendments is the duty of the student. ICAI wont bother if we not update them as required from time to time.

Thank u friends.....

But as far i was suggested by my study mates and my friends they say its 8.5 only now? or is it still 9.5 i just dont understand it?Each one has a different opinion and i am confused about which one to follow..Please  advice.....


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