New Delhi: The EPFO (Employees’ Provident Fund Organization) is expected to credit interest on provident fund deposits for the fiscal year 2020-21 very shortly. According to sources, over 6 crore employees will receive the perk by the end of this month, just in time for Diwali. For the financial year 2020-21, the retiring board fixed the interest rate on provident fund deposits at 8.5 percent. During the COVID-19 epidemic, there were more withdrawals and less contribution from members, hence the decision was made.
Following the country’s coronavirus outbreak, the EPFO cut the interest rate to a seven-year low of 8.5 percent for 2019-20 in March. In 2018-19, the interest rate was 8.65 percent. For the 2017-18 fiscal year, the EPFO offered its subscribers an interest rate of 8.55 percent. In 2016-17, the interest rate was 8.65%.
Citing the Covid-19 pandemic, EPFO recently permitted members to take money out of their retirement fund as a non-refundable advance. The central government created a new provision under the Pradhan Mantri Garib Kalyan Yojana (PMGKY) in March 2020 that would allow EPF members to withdraw three months’ basic pay and dearness allowance (DA) or 75 percent of their Provident Fund money as advance, whichever is lower. Also Read: Gold Price Today, 11 October 2021: Gold, silver prices fall down on global cues
“To support its subscribers during the second wave of COVID-19 pandemic, EPFO has now allowed its members to avail second non-refundable COVID-19 advance. The provision for special withdrawal to meet the financial need of members during the pandemic was introduced in March 2020, under Pradhan Mantri Garib Kalyan Yojana (PMGKY),” the ministry said.
“During the difficult time of COVID-19 pandemic, EPFO is committed to provide a helping hand to all its stakeholders,” the ministry said in a statement. Also Read: India receives 3rd set of Swiss bank details under automatic info exchange framework
Interest on employee contributions to provident funds exceeding Rs 2.5 lakh per annum will be taxed, commencing April 1, according to Finance Minister Nirmala Sitharaman’s Budget 2021. “In order to rationalise tax exemption for the income earned by high income employees, it is proposed to restrict tax exemption for the interest income earned on the employees’ contribution to various provident funds to the annual contribution of Rs 2.5 lakh,” Sitharaman said in her Budget 2021 speech.
1) PF balance via SMS
EPFO members with a universal account number (UAN) can text “EPFOHO UAN ENG” to 7738299899 from their registered cellphone. The user will receive a message providing information about your EPF account, including your PF account balance, once the SMS has been successfully sent. In the SMS, the EPFO member must select your preferred communication language.
2) EPF Balance Check
You can also check your EPF balance by making a missed call from your registered mobile number to the authorised phone. This feature is only available if your UAN has been linked to your KYC information.