The Finance Act, 2021 has brought the interest earned on excess contribution to PF within the ambit of taxable income. The CBDT vide Notification No. 95/2021, dated 31-08-2021, has notified Rule 9D for calculation of the taxable portion of interest pertaining to the contribution made to a statutory or a recognized provident fund in excess of the threshold limit of Rs. 2.5 lakh or 5 lakhs as the case may be.
It provides that separate accounts within the provident fund account shall be maintained during the previous year 2021-22 and onwards for the taxable and non-taxable contribution made by the person.
