The government is going to give 24% EPF subsidy
The retirement fund body has said it will not allow major corrections in member profiles in online mode
Speculation is rife that the EPFO may lower interest on provident fund deposits for this fiscal (2020-21), from 8.5% it provided for 2019-20
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
Take-home salary may come down
Any changes to PPF contributions will need amendments in the PPF Act.
Payout reflects the effect of pandemic
The decision to tax interest earned from provident fund contribution of over Rs 2.5 lakh a year is likely to affect only 0.23% of 45 million subscribers.
Around Rs 825 crore is deposited in the accounts of top-20 rich investors.
Budget 2021 has removed the tax exemption status to interest accrued on investments in employees provident fund exceeding Rs 2.50 lakh per annum.