Employees Provident Fund Organization The subscribers of the Provident Fund of India (PF Subscribers) can get the news of relief soon. Subscribers of PF can soon get interest money on their account balance for the financial year 2020-21. The interest rate for this financial year has been fixed at 8.5 percent. The Labor Ministry had also issued a statement regarding this in March.
According to the Good Returns website, there is news that EPFO can credit PF interest money to PF subscribers for the financial year 2020-21 till the end of July. There is no official announcement regarding this yet.
However, it is a matter of fact that the interest rate kept for this year is the lowest in seven years. Labor and Employment Minister Santosh Gangwar gave his approval to 8.5 percent interest rate on PF deposits for 2020-21. The Central Board of Trustees (CBT) of EPFO had a meeting in March, after which there was no change in the rates.
Tax on PF interest rate
By the way, remind you that in this budget a new provision has been made regarding PF interest, in which the limit for non-tax on interest has been limited. According to the new provision, now only such PF account holders who get interest on annual contribution up to Rs 2.5 lakh will be exempted from tax. Apart from this, any high-income PF account holder, whose annual contribution is more than Rs 2.5 lakh, will have to pay income tax on interest income.
Facility to withdraw money to shareholders in Kovid crisis
In view of Kovid, to provide relief to the shareholders, from PF withdrawal of money was given, which has been extended for one more time. Now subscribers can withdraw their Kovid-19 advance for the second time. The Labor Ministry said that in order to help its shareholders during the second wave of Corona epidemic, EPFO has allowed its members to take Kovid-19 Advance for the second time, which is not refundable. will have to do.
Another new rule of EPFO has come into effect from June 1, 2021. Now it will be mandatory for the subscribers to link their EPF account with their Aadhar card, for their PF contribution money to be made by the employer reaches their account. This mandatory has come into force from yesterday.