Bad News For EPF Consumers! EPFO To Credit 8.5% Interest To Subscribers For 2019-20 In Two Installments

EPFO is one of the World's largest Social Security Organisations in terms of clientele and the volume of financial transactions undertaken. There are around 60 million EPF subscribers in the country.

The Finance Minister Nirmala Sitharaman has reduced TDS (tax deduction at source) rates for non-salaried specified payments and the TCS (tax collection at source) rates by 25 percent

After the Coronavirus outbreak, the year 2020 has announced another not-so- good news for EPF consumers across the country. EPF consumers will have to wait for the interest amount of 2019-20. EPF Board of Trustees in a meeting on Wednesday (September 9) announced that the interest amount for 2019-20 will be credited into the account of its around 6 crore subscribers in two installments. As per the development, the first installment of 8.15 per cent interest will be paid for the period 2019-20 while the second installment of 0.35 per cent is expected in December. For 2019-20, 8.50 per cent interest was announced on EPF account. In the meeting, same rate of 8.50 per cent to the Central Govt was recommended. It would comprise of 8.15 per cent from debt income and balance 0.35 per cent (capital gain) from the sale of ETFs subject to their redemption by 31st December 2020 The government has attributed the delay to the situation arising out of the Coronavirus pandemic. Due to poor economic conditions owing to the long-term Covid-induced lockdown, the income of the EPF organization has come down this year. It is to be noted that this will be the second year in a row that the payment of interest will be delayed. Last year too, the government was criticized for delay in payment of interest to consumers' accounts. Meanwhile, a relief for consumers was also reported in the board meeting. In the meeting, it was decided to increase the maximum security benefit limit from Rs 6 lakh to Rs 7 lakh to the family on the untimely death of the account holder. EPFO is one of the World's largest Social Security Organisations in terms of clientele and the volume of financial transactions undertaken. There are around 60 million EPF subscribers in the country.