EPF Balance

EPF Interest Rate

EPF Interest Rate 8.55% on PF Deposit for 2017-18 EPFO cuts Interest Rate

EPF Interest Rate 8.55% on PF Deposit for 2017-18 EPFO cuts Interest Rate from 8.65% to 8.55% fro 2017-18. PF Interest Rate cuts to 8.55% for 2017-18 from 8.65% for 2016-17. EPF Interest Rate 8.55% for the financial year 2017-18.
According to an official from labour ministry, Employees’ Provident Fund Organisation (EPFO) is likely to lower interest rate on provident fund deposits for this fiscal from 8.55 per cent provided to its members during 2017-18. EPFO has reduced interest rate on deposits to 8.55% for the financial year 2017-18 from 8.65% for 2016-17.

EPF Interest Rate

It is noteworthy that recently, EPFO approved an accounting policy for valuation and accounting of equity investments which was formulated in consultancy with IIM Bangalore.

EPF Interest Rate 8.55% on PF Deposit for 2017-18

As EPFO is planning to directly credit units of Exchange Trade Funds (ETF) into provident fund accounts which may result in lower yields on other investments more particularly bonds, interest rate cut is likely to happen.

However, the official added that EPFO is yet to work out the income projection for the current fiscal based on which interest rate cut will be decided.

The policy is to enable the EPF body to credit ETFs units into the provident fund accounts of the subscribers by the fiscal end, thereby to enable every account holder to see his/ her provident fund balance in the form of cash balance and ETF units.

Members of EPFO will only be able to realize the entire returns on the equity linked investments at the time of withdrawals even though the dividends on ETFs are credited into the subscribers’ accounts on timely basis.

At the same time, subscribers will also have an option to withdraw money while taking advances from their accounts, by liquidating ETF units or from cash component.

The finance ministry has been pushing the labour ministry to adjust the EPF rate at per with its small saving schemes like public provident fund. In the month of February 2018, the trustees of EPFO had decided to lower the rate of interest on EPF to 8.55 per cent for 2018-19 from 8.65 per cent provided for 2016-17. In case, the TDS rates are changes we will intimate you. Keep visit our website at epfbalance.net for latest information..

  • For more details visit EPF India official website at epfindia.com

Tax Deduction/ Exemption TDS on PF Withdrawal, EPF Saving Tips

Tax Deduction/ Exemption TDS on PF Withdrawal, EPF Saving Tips. No Tax Deduction for PF Withdrawal of up to Rs.50,000 from June 1st.
The Government has notified that, raising the threshold limit of PF withdrawal amount from 30,000/- to 50,000/-. Under the “Finance Act, 2016 amended section 192A of Income Tax Act, 1961 to raise the threshold limit of PF withdrawl from 30k to 50k for tax deduction at source TDS. These provision will come into effect from June 1, 2016. There are some provisions related to TDS, employee’s will exempted to pay the TDS on withdrawl of EPF amount from their own account.

TDS on PF Withdrawal

Tax Deduction/ Exemption/ TDS on PF Withdrawal, Benefits of Employee’s EPF Account :

  • TDS will not be deducted in case of transfer of an amount from one account to another account.
  • If an employee withdrawal PF after a period of 5 years period, there will be no tax deducted.
  • When an employee has submitted Form 15G/ 15H, then TDS is not deducted. Because these are declaration forms, means that their income would not be taxable.
  • When an employee discontinues/ not doing the job due to health problem, they will be exempted from TDS.
  • When an employee working in contractual basis/ working on project, there will no TDS. These employee’s can
  • withdrawl the PF amount after completion of contract/ project.
    And also, an employee can closed their business, at the time there is no TDS deducted.

TDS on PF Withdrawal Tax Deduction

Tax Deduction/ Exemption Rates TDS on PF Withdrawal Amount

  • EPF account holder/ existing provisions can withdrawl more than the limit of their own amount on with submitting of PAN card details and 15G/ 15H forms, they can pay the TDS rate at 10 percent.
  • TDS is deducted at the maximum marginal rate of 34.608 percent, if an employee fails to submit PAN of Form 15G / Form 15H.
  • However, EPFO has given certail exemptions to deduction of TDS.
  • TDS will be deducted under section 192A of Income Tax Act, 1961 at the time of payment on PF amount.
  • Both the forms of 15G and 15H are self declaration forms.
  • 15G Form is for below 60 years of age and have no taxable.
  • 15H Form is for senior citizens of 60 years and above of age.

When, an employee has not completed their 5 years working service, they can withdrawal the amount of less than 50,000/- from their PF account. In case of an employee can withdrawal more than/ equal amount of 50,000/-, they can submit the form of 15G/ 15H and PAN card Details.