The Central Board of Direct Taxes through notification dated 5th March, 2021 has issued the Income-tax (1st Amendment) Rules, 2021. The amendment provides the formulae for calculating annual accretion by way of interest, dividend or any other amount of similar nature during the previous year to balance the credit of the fund or scheme referred to in section 17.
The amendment also clarifies that where the amount or aggregate of amounts of TP1 and PC1 exceeds the amount or aggregate of amounts of balance to the credit of the specified fund or scheme on the first day of the current previous year, then the amount in excess of the amount or aggregate of amounts of the said balance shall be ignored for the purpose of computing the amount or aggregate of amounts of taxable perquisite.
