The year in which unrecognized provident fund is converted to recognized provident fund, this balance is known as transferred balance. It is :
A. Fully exempt
B. Fully taxable
C. It will be assumed as if the provident fund was recognized right from beginning and excess amount of employer’s contribution and interest thereon that would have been chargeable, will be chargeable to tax.
D. None of the above
Answer:C
The year in which unrecognized provident fund is converted to recognized provident fund, this balance is known as transferred balance. It is :
A. Fully exempt B. Fully taxable C. It will be assumed as if the provident fund was recognized right from beginning and excess amount of employer’s contribution and interest thereon that would have been chargeable, will be chargeable to tax. D. None of the above