Section 191
Section 191: tax on accumulated balance of a recognised provident fund
Section 191 deals with the tax computation when an employee's accumulated balance in a recognised provident fund becomes taxable because the fund does not qualify for the exemption in paragraph 8 of Part A of Schedule XI - in that situation, the Assessing Officer must calculate the tax as laid down in paragraph 9 of that Schedule.
What Section 191 provides
Where the accumulated balance due to an employee participating in a recognised provident fund is included in his total income, because the exemption in paragraph 8 of Part A of Schedule XI does not apply, the Assessing Officer shall calculate the total of the various sums of tax as per the provisions of paragraph 9 of that Schedule.
Frequently asked questions
When does Section 191 apply?
When an employee's accumulated recognised provident fund balance is included in his total income because it does not qualify for the exemption in paragraph 8 of Part A of Schedule XI.
How is the tax on the accumulated balance computed?
The Assessing Officer calculates the total of the various sums of tax as laid down in paragraph 9 of Part A of Schedule XI.
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Get help with provident fund tax computationLast updated 9 September 2026