Interest credited on contribution by such person/employee
1. As per section 10(11), any payment from a Provident Fund (PF) to which Provident Fund Act,
1925, applies or from Public Provident Fund would be exempt.
2. Accumulated balance due & becoming payable to an employee participating in a RPF would
be exempt u/s 10(12).
3. However, the exemption u/s 10(11) or 10(12) would not be available in respect of income
by way of interest accrued during the PY to the extent it relates to the amount or the
aggregate of amounts of contribution made by that person/employee exceeding ₹ 2,50,000
in any PY in that fund, on or after 1st April, 2021.
4. If the contribution by such person/employee is in a fund in which there is no employer’s
contribution, then, a higher limit of ₹ 5,00,000 would be applicable for such contribution,
and interest accrued in any PY in that fund, on or after 01/04/2021 would be exempt up to
that limit.
5. It may be noted that interest accrued on contribution to such funds up to 31/03/2021 would
be exempt without any limit, even if the accrual of income is after that date.
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