EPFO likely to credit 8.5% interest in accounts by July

The Employees' Provident Fund Organisation (EPFO) may credit the interest amount on PF deposits in 2020-21 at the 8.5 percent rate into subscribers' accounts by July sources said.

The report did not specify a particular date by which the interest amount would be credited into subscribers' accounts. The retirement fund manager, on March 4, said the interest rate for FY21 was unchanged at 8.5 percent.

The decision was taken at a meeting of the EPFO's Central Board of Trustees, held in Srinagar under the chairmanship of Union Labour Minister Santosh Kumar Gangwar, as per the report.

In March 2020, the EPFO reduced the interest rate on PF deposits to a seven-year low of 8.5 percent for fiscal year 2019-20, from 8.65 percent in FY19.

During the Budget for FY22, Finance Minister Nirmala Sitharaman said interest on PF deposits will be taxed if the annual contribution is more than Rs 2.5 lakh.