09 March 2013
Interest credited on the balance to the credit of the employee in so far as it is allowed at a rate exceeding such rate as may be fixed by Central Government. [w.e.f. 1-9-2010 rate is fixed at 9.5% - Notification No. SO 1046(E), dated 13-5-2011].
So any interest credited over 9.5% is taxable as salary.
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