Question:what is the taxability of interest on Provident fund deposits ?
Answer:Hello, the tax treatment of interest on Provident Fund is as follows
Recognized Provident Fund:Interest on provident fund is exempt up to 9.5%. Interest exceeding 9.5% will be added to employee’s salary income
Unrecognized Provident Fund: Not Taxable
Statutory Provident Fund: Fully Exempt
PPF: Fully exempt