Quick Summary
The Central Board of Direct Taxes has released the Income-tax (25th Amendment) Rules, 2021 to further make amendments to the Income-tax Rules, 1962. As such, after Rule 9C, a new rule 9D has been inserted which lays down provisions for Calculation of Taxable Interest Relating to Contribution in a Provident Fund or Recognised Provident Fund, Exceeding the Specified Limit. Relevant text of the new Rule is as follows 9D. Calculation of taxable interest relating to contribution in a provid
Daily Limit Reached
You have reached your daily limit of 2 Free News
Subscribe to CCI PRO for unlimited access
Why Upgrade to CCI PRO?
- No Ads
- WhatsApp Community
- Daily E-Newsletter
- Unlimited News Access
- Profile Visitors
- Link Social Profiles
- Featured Job Posts
- Pro Badge
- Expert GST Guidance
- Unlimited Forum Replies
- Download Content in PDF
1 Year PLAN - Rs.1999
1799
(Excl. of GST ₹323)
2 Years PLAN - Rs.3499
3149
(Excl. of GST ₹566)
BEST VALUE
3 Years PLAN - Rs.4999
4499
(Excl. of GST ₹809)
View all CCI PRO benefits
Already a PRO member? Login here for an ad-free experience. 07941056694
FAQ :
Rule 9D has been inserted to provide guidelines for calculating taxable interest on contributions made to provident funds or recognised provident funds that exceed a specified limit.
The rule requires separate accounts to be maintained from the previous year 2021-2022 and for all subsequent previous years.
Individuals must maintain separate accounts within their provident fund for taxable contributions and non-taxable contributions.
Taxable interest refers to the interest accrued during the previous year on contributions that are not exempt from inclusion in a person's total income under clauses (11) and (12) of section 10.
The rule applies to contributions in a provident fund or a recognised provident fund, where the contribution exceeds the specified limit.
CAclubindia
