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of <h1>CBDT Lowers Interest Rate on Employer Provident Fund Contributions to 8.5% u/r 6(b) Effective September 2010.</h1> The Central Board of Direct Taxes, under the Ministry of Finance, issued Notification No. 69/2010 on August 26, 2010, revising the interest rate on employer contributions to recognized provident funds. Effective September 1, 2010, the interest rate was reduced from 9.5% to 8.5% as per Rule 6(b) of Part A of the Fourth Schedule to the Income Tax Act, 1961. This change affects the deemed income of employees from such contributions. This notification superseded the previous notification dated May 30, 2001, and was later superseded by Notification No. 24/2011 dated May 13, 2011.
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