The Central Board of Trustees of Employees Provident Fund Organisation (EPFO) on Thursday proposed to maintain rates of interest unchanged for FY21 at 8.5%. The authorities will notify the charges after which the curiosity might be credited to the accounts of the subscribers. However, as per the provident fund regulation, no curiosity quantity will accrue as soon as the account turns into inoperative. Also Read | How citizen information led India’s covid battle As per the regulation, a provident fund (PF) account turns into inoperative in case the place an worker retires from service after attaining the age of 55 years or migrates overseas completely or dies and an software for withdrawal of his gathered steadiness will not be made inside 36 months. Until such time, the curiosity quantity will proceed to accrue on the PF corpus. In case an individual has modified jobs and never transferred the provident fund in his/her present account, it’s going to proceed to earn curiosity until the retirement age of 58 years. In Budget 2021, the federal government had proposed to tax the curiosity earned on contributions revamped and above ₹2.5 lakh. Currently, curiosity earned on PF contributions is tax-free. Even the gathered PF steadiness is exempt from tax if an individual has rendered steady service for a interval of 5 years or extra. Where there are a number of employers and the PF balances are transferred to the PF account with the latest employer, the cumulative interval of employment with all of the employers is required to be seen for the aim of evaluating whether or not the worker has rendered steady service for a interval of 5 years or extra. Subscribe to Mint Newsletters * Enter a sound electronic mail * Thank you for subscribing to our e-newsletter.
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