Forum submits request for industry consultation to discuss concerns emerging from the CBDT notifies rules on taxable value of annual accretions to excess contributions by employer to specified fund

Finance Act 2020 introduced new provisions with effect from tax year 2020-21 to tax: (a) employer’s contributions to PF, Superannuation, NPS in excess of INR 7,50,000 in a year and (b) annual accretions on such excess contributions to be computed as per the captioned. In relation to the same, the rules for computing the annual accretion on excess contribution were notified on 5 March 20211 with effect from 1 April 2021. On the basis of inputs received from our members Forum submitted a request to discuss concerns on the rules.