We have observed that as per section 9D of Income Tax Act 1956 interest receivable in respect of PF deduction in excess of Rs.2,50,000/- is taxable under the head of Income from Other Sources.
We are depositing the Provident Fund contribution to EPFO and they have also not declared the rate of interest against PF contribution for the year 2021-2022 till date.
We also observed that the rate of interest for the last financial year declared by EPFO after a lapse of 5-6 months of the current financial year. For example the rate of interest for the financial year 2019-2020 declared by EPFO at the end of financial year 2020-2021.
We seek your advice on :
How to calculate the interest on PF contribution and also how to give effect of income tax of a respective employee for the Financial Year 2021-2022 (Assessment Year 2022-2023).
CAclubindia
