Income Tax Act, 1961
Sch. IV Part A Rule 6. EMPLOYER’S ANNUAL CONTRIBUTIONS, WHEN DEEMED TO BE INCOME RECEIVED BY EMPLOYEE.
That portion of the annual accretion in any previous year to the balance at the credit of an employee participating in a recognised provident fund as consists of – (a) Contributions made by the employer in excess of twelve per cent. of the salary of the employee, and
(b) Interest credited on the balance to the credit of the employee in so far as it is allowed at a rate exceeding such rate as may be fixed by the Central Government in this behalf by notification 2340b in the Official Gazette, shall be deemed to have been received by the employee in that previous year and shall be included in his total income for that previous year, and shall be liable to income-tax.