EPFO to take up tax on PF interest income with FinMin
New Delhi, Sep 27 (PTI) Retirement fund manager EPFO today sought tax exemption on the entire 9.5 per cent interest that provident fund subscribers earn and would request the Finance Ministry for necessary action.
“We will take up the matter with the Finance Minister through Labour Ministry to get the issue resolved”, said Central Provident Fund Commissioner Samirendra Chatterjee when asked whether the interest on provident fund above 8.5 per cent would be taxed.
His comments come in the midst of reports that the additional one per cent interest that the trustees have decided to give for 2010-11 would be taxed in view of the Finance Ministry’s notification.
The Finance Ministry had on August 26 — before the Central Board of Trustees of the EPFO recommended the interest rate hike for the current fiscal — came out with a notification that said the returns up to 8.