Personal Finance

Report: EPFO May Credit Interest for FY 2020-21 by July 2021

The Employees’ Provident Fund Organisation (EPFO) is expected to credit the interest amount to the EPF accounts by July 2021 for FY 2020-21. It is to be recalled that the EPFO had to go through a delay in depositing the interest amount to subscribers’ EPF accounts due to the outbreak of the pandemic and numerous withdrawals in the previous financial year. 

As per the report, a meeting was held by the EPFO’s Central Board of Trustees in Srinagar under the chairmanship of Union Labour Minister Mr Santhosh Kumar Gangwar. The report was broadcasted by a private news channel and had no specifications of the date by when the interest amount will be credited. 

The interest rate applicable to the EPF account balance was kept unchanged at 8.5% p.a. For FY21. Further, the interest rate was at 8.5% p.a. as applicable to FY20. However, the interest rate for FY19 was at 8.65% p.a.

The pandemic made many people jobless. EPF subscribers could take care of their monthly expenses with the government’s aid by withdrawing a share of their EPF account balance. Though EPFO had to give away huge amounts of money to subscribers across the country in the form of withdrawals, the organisation has managed to retain the interest rate of 8.5% p.a. For FY 2020-21. This move of the EPFO is commendable.

For any clarifications/feedback on the topic, please contact the writer at apoorva.n@cleartax.in

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