Income-tax Rules, 2026 | Rule 277 of 333

Rule 277 - Provident-fund taxable interest Operative rule

Reviewed by CA Nikhil Gupta · Last reviewed 29 August 2026

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277Rule number

1393Local text characters

0Linked Forms

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For the connected rule or filing step, see Paragraph 53: Payment of Provident Fund.

Source and status control

Primary authority: Notification No. 22/2026 / G.S.R. 198(E)

For the connected rule or filing step, see EPF Withdrawal Tax Rules: When Is Provident Fund Withdrawal Taxable?.

Currentness control: Base Rules effective 1 April 2026. Check later amendments, corrigenda and portal implementation before action.

When you are ready for the next step, see EPF Establishment and Employee Coverage Checker.

Local statutory extract - official source controls

Rule text held in the production corpus

Provident fund interest computation. 277. (1) Taxable interest under Schedule II [Table: Sl. Nos. 3 and 4.C] to the Act shall be computed as the interest accrued in the taxable contribution account during the tax year. (2) For the purpose of calculating taxable interest under sub-rule (1), separate accounts within the provident fund account shall be maintained during the tax year 2021-2022 and all subsequent tax years for taxable contribution and non-taxable contribution made by a person. (3) For the purposes of this rule— (a) "non-taxable contribution account" is the aggregate of: the closing balance in the account as on 31 March 2021; any contribution made during the tax year 2021-2022 and subsequent tax years not included in the taxable contribution account; and interest accrued on the above, reduced by any withdrawal from such account; (b) "taxable contribution account" is the aggregate of: contributions made during the tax year 2021-2022 and subsequent tax years in excess of the threshold limit; and interest accrued on that excess, reduced by any withdrawal from such account; (c) "taxable interest" means the income by way of interest accrued during the tax year which is not exempt from inclusion in total income; and (d) "the threshold limit" for the purposes of clause (b) means Rs. 5,00,000 where the employer makes no contribution, and Rs. 2,50,000 in other cases.

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Official starting point: www.incometaxindia.gov.in