The Central Board of Direct Taxes through circular dated 31st August, 2021 has issued the Income-tax (25th Amendment) Rules, 2021. The amendment provides that while Calculating taxable interest relating to contribution in a provident fund or recognized provided fund, exceeding specified limit, non-taxable contribution account shall be the aggregate of the following, namely:-
- Closing balance in the account as on 31st day of March 2021;
- Any contribution made by the person in the account during the previous year 2021-2022 and Subsequent previous years, which is not included in the taxable contribution account; etc.
This rules will come into force on 1st day of April, 2022.
