The Finance Ministry on Wednesday clarified that there isn’t a lack of rate of interest for subscribers of Staff’ Provident Fund Organisation (EPFO) and the delay in crediting of rate of interest for FY22 is because of software program improve being accomplished as a result of tax tweaks launched final 12 months.
“There is no such thing as a lack of curiosity for any subscriber. The curiosity is being credited within the accounts of all EPF subscribers. Nonetheless, that’s not seen within the statements in view of a software program improve being carried out by EPFO to account for change within the tax incidence,” the Finance Ministry stated in a late night time tweet in response to TV Mohandas Pai on Twitter.
“For all outgoing subscribers searching for settlement and for subscribers searching for withdrawal, the funds are being accomplished inclusive of the curiosity,” it added.
In June, the Centre had cleared rate of interest of 8.10 per cent for over 6 crore subscribers of the EPFO for FY22. The speed was earlier advisable by the Central Board of Trustees in March, after which it was then ratified by the ministry. FY22 is the primary fiscal when the Centre’s proposal to tax curiosity on increased contributions to the EPF will come into impact.