Income deemed to be Received-Section 7
The following incomes shall be deemed to be received in the previous year :—
- Contribution and interest on RPF exceeding specified percentage the annual accretion in the previous year to the balance at the credit of an employee participating in a recognised provident fund, to the extent provided in rule 6 of Part A of the Fourth Schedule ;
Note Contributions made by the employer in excess of 12% of the salary of the employee, and interest credited on the balance to the credit of the employee in so far as it exceeds the rate of 9.5% during the previous year shall be deemed to have been received by the employee in that previous year.
- Transfer of balance from unrecognized provident fund to recognized provident fund the transferred balance in a recognised provident fund, to the extent provided in sub-rule (4) of rule 11 of Part A of the Fourth Schedule ;
Note The Assessing Officer shall make a calculation of the aggregate of all sums comprised in a transferred balance which would have been liable to income-tax if this Part had been in force from the date of the institution of the fund, without regard to any tax which may have been paid on any sum, and such aggregate (if any) shall be deemed to be income received by the employee in the previous year in which the recognition of the fund takes effect and shall be included in the employee’s total income for that previous year, and, for the purposes of assessment, the remainder of the transferred balance shall be disregarded, but no other exemption or relief, by way of refund or otherwise, shall be granted in respect of any sum comprised in such transferred balance.
Contribution to pension scheme exceeding specified percentage the contribution made, by the Central Government or any other employer in the previous year, to the account of an employee under a pension scheme referred to in section 80CCD.