Recognised Provident Fund : 8.5 percent rate notified under rule 6(b) of Part A of IVth Schedule to the Income-tax Act, 1961

As per Existing section 10(12), interest accrued on PF account of the employees upto 9.5% and employer’s contribution upto 12% of salary is exempt.  New notifications no 69/2010 has been issued  by the ministry of finance for reducing interest rate.. As per the Notification 69/2010, interest accrued to PF account of employee not exceeding 8.5% would be exempt u/s 10(12).

Recognised Provident Fund : 8.5% rate notified under rule 6(b) of Part A of IVth Schedule to the Income-tax Act, 1961 – Supersession of Notification No. S.O. 484(E), dated 30-5-2001

Employer’s annual contributions in a recognised provident fund – Deemed income of employee – Rate of interest reduced from 9.5% to 8.5% for the purpose of Rule 6(b) of Part A of the Fourth Schedule to the Income Tax Act, 1961

Notification No. 69/2010, [F.No. 142/14/2010-SO (TPL)], dated 26-8-2010

In exercise of the powers conferred by clause (b) of rule 6 of Part A of the Fourth Schedule to the Income-tax Act, 1961 (43 of 1961), and in supersession of the notification of the Government of India in the Ministry of Finance (Department of Revenue) number S.O. 484(E), dated the 30th May, 2001, the Central Government hereby fixes, with effect from the 1st day of September, 2010, 8.5 per cent., as the rate referred to in the said clause.