The Central Government has fixed the interest rate on employees’ provident fund deposits at 8.5 per cent for the current financial year (2020 21).
epfo interest rate fixed: The Center has fixed the Employees Provident Fund (EPF) interest rate. The Central Government has fixed the interest rate on employees’ provident fund deposits at 8.5 per cent for the current financial year (2020 21). The decision was taken at a meeting of the Central Board of Trustees in Srinagar on Thursday, officials said. However, an official statement is yet to be released. Despite initial speculation that the interest rate could be cut this time around, the rate remained the same as last year. The decision alone will benefit 6 crore customers. The Central Board of Trustees of the EPFO has decided on the interest to be fixed for the current financial year. 8.65 per cent interest is applicable on PF deposits for the financial year 2018-19. It has been reported that the interest rate of 8.65 per cent will be maintained this time as well. But the EPFO cut the interest rate by 15 basis points.
In view of the circumstances arising out of the Kovid 19 epidemic .. the employees withdrew a large amount of cash from their accounts. At the same time deposits are declining. As of December last year, an estimated 2 crore EPFO customers had withdrawn Rs 73,000 crore. It is likely to grow further by the end of the current financial year. Subscribers will withdraw Rs 81,000 crore in 2018-19. Officials estimate that there will be more withdrawals in 202021. It is learned that the interest rate for the year 2019 20 has been announced as 8.5 per cent. It seems that the latest meeting has decided to continue with that. In 2018-19, it was 8.65 per cent. On the other hand a key decision on EPF has been taken in the latest budget. It is learned that Finance Minister Nirmala Sitharaman announced during her budget speech that interest will be taxed if the share of employees exceeds Rs 2.5 lakh per annum.
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