The additional quantum of interest on Employees Provident Fund deposits would be exempted from income tax, the Lok Sabha was informed today.
The provident fund trustees had on September 15 decided to raise the EPF interest rate by a per cent to 9.5 for 2010-11.
"The matter has been discussed with Finance Ministry and they have informed that they will revise the notification to 9.5 per cent once it is approved by the Government," Minister of State for Labour and Employment Harish Rawat said in a written reply.
The decision taken by the Central Board of Trustees of EPF to raise the interest rate would benefit 4.71 crore employees in both public and private sectors.
source-http://www.ptinews.com
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