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EPFO to announce interest rates for 2020-21 in the first week of March

PF Interest Rate: The next meeting of the Central Board of Trustees (CBT), the decision making body of the Employees Provident Fund Organization (EPFO), will be held in Srinagar on 4 March. In this meeting, the interest rate on provident fund deposits for 2020-21 will be discussed.

The rate of interest on Employee Provident Fund (EPF) is likely to be announced in the first week of March. The next meeting of the Central Board of Trustees (CBT), the decision making body of the Employees Provident Fund Organization (EPFO), will be held in Srinagar on 4 March. In this meeting, the interest rate on provident fund deposits for 2020-21 will be discussed. The EPFO ​​told the CBT members that the exact time and venue of the meeting will be informed soon. The agenda of the meeting will be forwarded soon.




However, sources said that CBT may discuss the rate of interest for 2020-21 so that the accounts of about 6 crore subscribers of EPFO ​​can be credited. The government had decided to pay 8.5 percent interest for the financial year 2019-20, which was the lowest in seven years. At the same time, this rate was 8.65 percent in the financial year 2018-19.

Since the first meeting of the CBT held on 5 February 1953, Srinagar was never the venue of the meeting. The meetings of CBT have mostly been held in Delhi, Shimla, Patna, Chennai and Mumbai. Under the leadership of the Labor Minister, the CBT has about 40 members.




Will have to pay tax on PF interest

The tax was announced in the Budget 2021 regarding Employee Provident Fund. As stated earlier, the benefit of tax deduction under 80C for investing in PF, interest income is completely tax free and that amount is also tax free after withdrawal after five years. In the budget, Finance Minister Nirmala Sitharaman said that up to 2.5 lakh investment in EPF will be tax free in a financial year. Investing more than that will be taxed on interest earned on the additional amount. Till now the interest income was completely tax free.

Parvesh Maurya
Parvesh Maurya
Parvesh Maurya, has 5 years of experience in writing Finance Content, Entertainment news, Cricket and more. He has done BA in English. He loves to Play Sports and read books in free time. In case of any complain or feedback, please contact me @ informalnewz@gmail.com
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