Notification No. 5(4)-B(PD)/2011, Dated 13.03.2012 regarding interest on Non-Government Provident,Superannuation and Gratuity funds

Friends

SPECIAL DEPOSIT SCHEME FOR NON-GOVERNMENT PROVIDENT, SUPERANNUATION AND GRATUITY FUNDS - NOTIFIED RATE OF INTEREST ON SUCH DEPOSITS

NOTIFICATION NO.5(4)-B(PD)/2011, DATED 13-3-2012

It is hereby notified that the deposits made under the Special Deposit Scheme for Non-Government Provident, Superannuation and Gratuity Funds, announced in the Ministry of Finance (Department of Economic Affairs) Notification No. F. 16(1)-PD/75, dated 30th June, 1975, shall with effect from 1st December, 2011 and until further orders, bear interest at 8.6% (eight point six per cent) per annum.

Gratuity Tax Exemption

Now, Gratuity maximum Income Tax exemption  limit has been increased to Rs. 10 Lakh under sub clause (iii) of clause (10) of section 10 of the Income Tax Act 1961.  The extended exemption limit notification will be implemented on those employees who retire, or become incapacitated before retirement, or expire, or whose services are terminated, on or after the 24th May 2010.

Read below complete Notification No. 43/2010;F.No.200/33/2009-ITA.I

PressRelease_GratuityTaxExemption_06142010