# The Finance Act, 2026, Section 127: Amendment of Schedule XI

- Act: The Finance Act, 2026 (Act 4 of 2026)
- Ministry: Ministry of Finance
- Source URL: https://indiacode.ecourtsindia.com/finance-act-2026/section/127/

## Text

Amendment of Schedule XI. 127. In Schedule XI to the Income-tax Act,— (a) | in Part A,— (i) | in paragraph 4,— (A) | clause (c) shall be omitted; (B) | for clause f), the following clause shall be substituted, namely:— "(f) the fund shall be a fund— (i) | of an establishment to which the provisions of section 1(3) of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952 (19 of 1952) apply; or (ii) | of an establishment notified by the Central Provident Fund Commissioner under section 1(4) of the said Act, and such establishment shall obtain exemption under section 17 of the said Act from the operation of all or any of the provisions of any scheme as referred to in that section;"; (ii) | in paragraph 5, sub-paragraph (4) shall be omitted; (iii) | for paragraph 6, the following paragraph shall be substituted, namely:— "6. Employer's annual contributions, when deemed to be income received by employee.—The portion of the annual accretion in the tax year to the balance of an employee in a recognised provident fund consisting of interest credited on the balance to the credit of an employee in so far as it is allowed at a rate exceeding such rate as fixed by the Central Government by notification, shall be deemed to have been received by the employee and included in his total income for that tax year and shall be liable to income-tax."; (b) | in Part C, in paragraph 1,— (i) | clause (d) shall be omitted; (ii) | for clause (e), the following clause shall be substituted, namely:— "(e) to regulate investment or deposit of the moneys of a recognised or an approved fund;".

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