How is interest accrued in EPF, VPF taxed?

[Felaket]

How is interest accrued in EPF, VPF taxed? As per the provisions of the Income-tax Act, 1961, if EPF contribution by employee exceeds ₹2.5 lakh during the financial year, interest accrued during the year on such excess contribution will be considered as taxable income at the normal tax slab rates