Payment from Statutory and Public Provident Funds (SPF/ PPF/ RPF) - (New) Schedule -II / (Old) Section 10(11) & (12)]

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....f Part A of the Schedule XI. Condition • (a) The income by way of interest accrued during the tax year shall not be eligible for exclusion from total income where,-- • (i) it is attributable to the contribution (including aggregate thereof) made by that person on or after the 1st April, 2021; • (ii) such contribution exceeds-- • (A) in case no employer contribution - Rs. 5,00,000 in a tax year  • (B) in case employer Contribution -  Rs. 2,50,000.  • (b) the amount of income not to be excluded from total income as referred to in clause (a) shall be computed in such manner specified under Rule 277(2). • Calculation of taxable inte....

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....Section 123 up to the overall limit of Rs. 1,50,000. (i.e. contribution by an employee to a recognised provident fund).  • Employer's Contribution : Exempt from tax up to 12% of salary; contributions exceeding Rs. 7,50,000 across recognized funds and schemes are taxable as perquisites.  Employer's annual contributions, when deemed to be income received by employee [ Para 6 of Part A of the Schedule XI. ] The portion of the annual accretion in the tax year to the balance of an employee in a recognised provident fund consisting • of interest credited on the balance to the credit of an employee in so far as it is allowed at a rate exceeding such rate as fixed by the Central....

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....Central Government. • (e) Where the accumulated balance due and payable to an employee includes any amount transferred from another recognised provident fund or funds of a previous employer or employers, the continuous service period for the purposes of sub-paragraph (1)(a) or (b) shall include the period or periods served under the aforesaid previous employer or employers. Taxability on accumulated balance of provident fund  • Where the accumulated balance due to an employee is included in his total income owing to the provisions of paragraph 8 of Part A of the Schedule XI. not being applicable, then- • (a) the Assessing Officer shall calculate the total of the various sums of tax which would ....

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....employee for each such year. [ under Section 29(1) & Rule 306 ] • Income earned by a recognised provident fund is exempt under Schedule -VII Table (Sl. No. 22). Under Income Tax Act, 1961 [ Upto 31.03.2026 ] PAYMENT FROM PROVIDENT FUNDS [ Section 10(11) & (12) ] Types of Provident Fund • Statutory Provident Fund (SPF): Established under the Provident Fund Act, 1925, primarily for government and semi-government employees. • Recognized Provident Fund (RPF): Recognised by the Income-tax Commissioner under Part A of the Fourth Schedule of the Income-tax Act; includes funds under the Employees' Provident Fund Act, 1952, prev....

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....ring the previous year in the taxable contribution account.  • Maintained two separate PF Account for the purpose of calculation of taxable interest  • separate accounts within the provident fund account shall be maintained during the previous year 2021-2022 and all subsequent previous years for • taxable contribution account and • non-taxable contribution account made by a person • (a) Non-taxable contribution account shall be the aggregate of the following, namely:- • (i) closing balance in the account as on 31st day of March 2021; • (ii) any contribution made by the person in the account during the previous year 2021-2022 and subsequ....

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....ontrol of the employee • if, on the cessation of his employment, the employee obtains employment with any other employer, to the extent the accumulated balance due and becoming payable to him is transferred to his individual account in any recognised provident fund maintained by such other employer • if the entire balance standing to the credit of the employee is transferred to his account under a pension scheme referred to in section 80CCD and notified by the Central Government.  • If employee gets transfer of balance of RPF with another employer who also maintains RPF then the period of service under former employer shall also be included in calculating the period of continuous service. [ P....