Likely setback for EPFO subscribers, may see dip in returns
A decision related to the rates may be taken at the meeting of the EPFO central board of trustees scheduled to be held on March 4
The debilitating impact of the coronavirus pandemic on the economy is set to have further repercussions for the common man as over six crore subscribers of the Employees’ Provident Fund Organisation (EPFO) may see a dip in their returns.
According to a report in The Economic Times, a decision related to the rates may be taken at the meeting of the EPFO central board of trustees scheduled to be held on March 4.
The report said (Finance Investment and Audit Committee) FIAC is analysing impact on EPFO’s earnings in 2020-21 following huge withdrawals and dip in deposits.
EPFO gave an interest rate of 8.5% for FY20 and 8.65% in FY19.
FM Nirmala Sitharaman in the Budget had announced that interest on provident fund contributions by employees exceeding Rs 2.5 lakh per year will be taxed from next financial year.
Download Money9 App for the latest updates on Personal Finance.
