Interest on Recognised Provident Fund

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Lakshmi (Querist)
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30 October 2007 Interest on recognised provident fund was exempt earlier to the extent of 9.5%. It has now been changed to 8.5%. I would like to kmow this change would be applicable from which previous year/assessment year ?

AJAY

AJAY (Expert)
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31 October 2007 Dear lakshmi..

The government decided to maintain 8.5 percent interest rate for the 40 million subscribers of the employees' provident fund (EPF) scheme for 2006-07.IT THE PRIVIOUS YEAR RELEVENT TO ASSESSMENT YEAR 2007-08.

'The central government has notified 8.5 percent rate of interest for the year 2006-07,' Central Provident Fund Commissioner A. Viswanathan told THAT The fund's trustees had also recommended the same interest rate.