Ankur (na) (252 Points)
13 July 2011Hello Friends,
As we know that the exemption limit of Interest ON RPF has been reduced from 9.5% to 8.5% with effect from 1-september-2010.
can any one please tell me that now will the taxable portion of Interest ON RPF will be calculated for two periods separately for AY 2011-12 i.e. for (1-4-2010 to 31-8-2010) at 9.5% and for (1-9-2010 to 31-3-2011) at 8.5% exemption limit?
Please do reply.
thanking in anticipation.
U S Sharma
(glidor@gmail.com)
(21063 Points)
Replied 13 July 2011
RPF accounts department credit the interest to the accounts of members in next year april end only, and in accounts slips they have to mention the taxable and exempted portion of PF interest.
RPF has own norms of interest calculations, so no need to get hurry over PF interest, unless you get accounts slips of "taxable interest portion" and you will have to add the taxable portion in your taxable income in the year of receipt of acconts slips.
@*CS Siddharth Bumb. *
(B.Com, CA Final, CS )
(5270 Points)
Replied 13 July 2011
YES..i had also same doubt..i asked my teacher she told that calculation will be done according to two diff periods,
one is calculate interest @ 9.5% till sept and
8.5% after that....
U S Sharma
(glidor@gmail.com)
(21063 Points)
Replied 13 July 2011
as the account of RPF goes deposited every month and same is increasing every month with contributions paid, department has its own cut off date to credit the accounts( to some extent its like RD accounts but with not fixed contributions) so unless the dep0artmental sheet of contributions is available with you, you can not calculate the interest.
another incident, the employer deducted PF from salary but deposited late by 1 month, in such case the department will not go normal but the account will get credited with deposit only, later on at account finalization time, if the amount is paid with interest and damage the interest is credited.
Ankur
(na)
(252 Points)
Replied 14 July 2011
Thank you very much Siddharth Bumb and U S Sharma sir for your valuable replies.
I have come to know that the above exemption limit (8.5%) notification which was issued on August 26,2010 has now been superseded by a notification issued on May 13,2011 which states that the exemtion limit is to be restored at 9.5% again from 1-9-2010 onwards and the notification issued on August 26,2010 will now have no effect.
My question is that since for students appearing in IPCC exams of Nov.2011 only the amendments and notification issued upto 30 April,2011 are to be taken into consideration and as above notification is passed in May, so should we calculate the INTEREST ON RPF taxable portion at 9.5% and 8.5% for five and 7 months respectively (as per noti. issued in Aug 2010) in exams although we know that the exemtion limit of 8.5% has been replaced by 9.5%?
plz plz plz plz reply
thanking in anticipation
U S Sharma
(glidor@gmail.com)
(21063 Points)
Replied 14 July 2011
I m unware of exams but in practical its not possible to ascertain the PF activity by self accounting, unless we get accounts slips from P/F
you can take alternate example similer to this
savings banks had enhanced interest from 3.5 to 4 percent from 2011 may, and if i post a query that "how to calculate interst for april to may @ 3.5% and may to june @ 4% coz banking intersts are daily product and it comes to minimim daily balance, and no body can calculate exact interest unless bank provides data.
Harsh Badera
(Job)
(24 Points)
Replied 04 August 2011
| Originally posted by : Ankur | ||
 |
I have come to know that the above exemption limit (8.5%) notification which was issued on August 26,2010 has now been superseded by a notification issued on May 13,2011 which states that the exemtion limit is to be restored at 9.5% again from 1-9-2010 onwards and the notification issued on August 26,2010 will now have no effect. My question is that since for students appearing in IPCC exams of Nov.2011 only the amendments and notification issued upto 30 April,2011 are to be taken into consideration and as above notification is passed in May, so should we calculate the INTEREST ON RPF taxable portion at 9.5% and 8.5% for five and 7 months respectively (as per noti. issued in Aug 2010) in exams although we know that the exemtion limit of 8.5% has been replaced by 9.5%? plz plz plz plz reply thanking in anticipation |
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Hi,
I hv same query that which rate is applicable in Nov. 2011 exams it is only 9.5% for whole year or 9.5% up to 31st Aug. 2010 and 8.5% on or after 1st Sep. 2010.
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