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Monday, October 25, 2021

The government will decide on the interest rate of PF on March 4! 6 crore subscribers may get a shock

PF Interest Rate: The central government can take a big decision on the interest rate to be paid on PF, i.e. on March 4. The Central Board of Trustees (CBT) is going to meet on March 4, in which the decision will be taken after discussing the earnings and financial condition of the EPFO. It is believed that due to the huge withdrawal and contribution due to Corona virus, the interest rate may decrease. If this happens, more than 6 crore subscribers of EPFO ​​may get a big blow on 4 March. In the last few years, due to the fall in the interest rate, there has also been a big impact on the earnings from PF. EPFO invests most of its shares in government securities.

PF interest rate at lower level

Explain that the interest rates for the financial year 2019-20 was 8.5 percent. The interest rate on PF for 2019-20 is the lowest level since 2012-13. In the financial year 2018-19, EPFO ​​paid 8.65 per cent interest to subscribers.

How to change rates in 7 years

FY 2019-20: 8.5 percent
FY 2018-19: 8.65%
FY 2017-18: 8.55%
FY 2016-17: 8.65 percent
FY 2015-16: 8.8 percent
FY 2013-14: 8.75 percent

The Employees Provident Fund Organization announces the interest rate on the PF Fund for every financial year. Announcing the interest rates for the financial year 2019-20, the board said that it will pay 8.5 per cent interest in two installments in the financial year ended 31 March. In the first installment, 8.15 percent interest will be paid from debt investment and in the second installment 0.35 percent interest will be paid from equity.

Relief to 6 crore subscribers; EPFO does not reduce return on PF, recommends 8.5% interest for FY21

There was a setback in the budget as well

Subscribers had also received a setback in Budget 2021 regarding provident fund. In the budget, the rule was changed regarding tax exemption on contribution to PF. In the new rule, the exemption of interest on PF to people with high income bracket has been reduced. If a person’s annual contribution to PF is more than 2.5 lakh rupees, then he will have to pay tax on whatever interest he gets on the amount of more than 2.5 lakh rupees.

Nisha Chawlahttps://www.businesskhabar.com/
She is an expert in Banking, Finance and working with an international bank. She sharing her ideas and knowledge with Business Khabar.
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