25 April 2011
Labour Ministry has increased the PF interest rate from 8.5% to 9.5% but the Ministry of Finance has issued the notification that as per Income Tax Act the Notified Interest Rate will be 8.5% from October 2010 onwards.
I require the clarification that whehter the additional 1% interest will be taxable in Employee Hand.
What will be the consequenses in case the Interest is not added by the Employer in the Form 16 and TDS is not deducted on the same.
CAclubindia
