Please any one explain this page in taxation

Phani · 19 Jul 2024

As per the exemption under section 10(11) and 10(12) of income tax act, the amount at the time of withdrawal from the provident fund would be exempted. But from the PY 21-22, there set a limit for this exemption by CBDT as it is that:- If only employee contribution then upto 5 lakhs, otherwise than 2.5 lakhs would be exempted to the extent of interest accrued on it. So, for this purpose separate accounts will be maintained . That is upto the limit (2.5L/5.0L) which is exempted contribution and the interest accrued on such portion maintained in separate account where another account for over and the amount of contribution and interest accrued on that contribution which is not exempted be maintained for easy purpose of assessing the taxable portion of income...