Recognition of Provident Funds Under the Inocme-Tax Act

New Delhi, Mar 9 (UNI) The Finance Ministry today issued a clarification relating to recognition of Provident Funds under the Income Tax Act, which entails that all new establishments will fall in this category only if they fulil the new conditions in addition to all existing conditions prescribed under the Act.

While issuing new instructions, the Finance Ministry said there was no move to derecognise any fund as was being "apprehended in some quarters." The new condition only seeks to provide legislative synergy between the Income-tax Act and the EPF and MP Act, a release said here.

Under the Income-tax Act, a recognised Provident Fund enjoys certain tax benefits.

UNI GS RA RN1757