The Employees Provident Fund Organisation (EPFO) has decided to pay the interest for FY 2019-20 in two instalments. The first instalment consisting of 8.15% is due for immediate payment. The second instalment of 0.35% will be due for credit in December 2020.
The EPFO had earlier notified 8.5% as interest for the FY 2019-20. However, due to market volatility affecting its liquidity, it could not make the interest payment due on 31 March 2020.
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The matter of credit of EPF interest was a concern raised by several subscribers, and the interest payment is due since 31 March 2020. In a recent meeting of the EPFO’s board, it decided to immediately pay 8.15% interest from its income from debt investment.
The board has decided to meet again and decide on liquidation of its investment in various exchange-traded funds. The EPFO will use the proceeds from the sale to make the payout of the second instalment of 0.35% in December 2020.
For any clarifications/feedback on the topic, please contact the writer at sweta.dugar@cleartax.in
I am a Chartered Accountant by profession. I specialise in personal taxes and corporate income tax matters. I am an avid reader and track developments in financial markets, economy and other market developments.
