Finance Ministry to soon announce tax exemption on 9.5% PF(provident fund) returns

The Finance Ministry is believed to have agreed to modify its notification for exempting from tax the entire 9.5 per cent interest on provident fund deposits for 2010-11, and will soon announce the good news for EPFO's six crore depositors.



"The Finance Ministry will soon revise the notification brought out on August 26, for giving exemption on returns on provident fund deposits up to 9.5 per cent (rate of return) for this fiscal", an official source said.



The new notification would be out in next 10 days as the ministry has already initiated the process of revising the earlier notification, the source said.



The Finance Ministry had on August 26 -- before the Central Board of Trustees of the EPFO recommended the interest rate hike to 9.

source;pti