Taxable interest on provident fund excess contributions must be computed from segregated taxable contribution accounts. Calculation of interest on provident fund contributions exceeding specified limits is governed by rule 9D: taxable interest equals interest accrued during the previous year in the taxable contribution account. Separate accounts for taxable and non-taxable contributions must be maintained from the previous year 2021-2022 onwards. The non-taxable account comprises the specified base closing balance, subsequent non-excess contributions and accrued interest, reduced by withdrawals; the taxable account comprises contributions in excess of the threshold and accrued interest, reduced by withdrawals. A statutory threshold limit determines when contributions are treated as taxable.