Best printers for Home

Best Mixer Grinder

Best wired Earphones

Best 43 Inch TV in India

Best Wi Fi Routers

Best Home Theatre in India

Smart Watch under 5000

Best Laptops for Education

Best Laptop for Students

New Delhi, Mar 4 () Retirement fund body <keyword id="6372438" type="COMPANY" weightage="20" keywordseo="epfo">EPFO</keyword> on Thursday decided to retain 8.5 per cent rate of interest on provident fund deposits for the current financial year. EPFO has more than five crore active subscribers. The Employees' Provident Fund Organisation's (EPFO) apex decision-making body <keyword id="225704" type="COMPANY" weightage="20" keywordseo="Central-Board-of-Trustees">Central Board of Trustees</keyword> decided to fix 8.5 per cent rate of interest for 2020-21 at its meeting in Srinagar on Thursday, sources said. There were speculations that the EPFO would lower interest on provident fund deposits for this fiscal (2020-21) from 8.5 per cent given in 2019-20 in view of more withdrawals and lesser contribution by members amid the coronavirus pandemic. In March last year, the EPFO had lowered interest rate on provident fund deposits to a seven-year low of 8.5 per cent for 2019-20, from 8.65 per cent in 2018-19. The <keyword id="45027" type="COMPANY" weightage="20" keywordseo="EPF">EPF</keyword> (<keyword id="114591" type="COMPANY" weightage="20" keywordseo="Employees-Provident-Fund">Employees Provident Fund</keyword>) interest rate provided for 2019-20 was the lowest since 2012-13, when it was 8.5 per cent. The EPFO had provided 8.65 per cent interest rate to its subscribers in 2016-17 and 8.55 per cent in 2017-18. The rate of interest was slightly higher at 8.8 per cent in 2015-16. It had given 8.75 per cent rate of interest in 2013-14 as well as 2014-15, higher than 8.5 per cent for 2012-13. The EPFO had provided 8.25 per cent rate of interest on provident fund in 2011-12. KKS RAM

EPFO retains 8.5% interest rate for 2020-21

As investment instruments, <keyword id="76579" type="CITY" weightage="20" keywordseo="PPF">PPF</keyword> (Public Provident Fund) and <keyword id="45027" type="ORGANIZATION" weightage="20" keywordseo="EPF">EPF</keyword> (Employees' Provident Fund) have a lot of things uncommon between them. Basically speaking, the decision to invest in a PPF scheme rests with the investors while EPF is automatically deducted from the salary of the salaried class of people. Both these investment options enable the investors cave on taxes. Section 80 C of the Income Tax Act of 1961 makes both <keyword id="8113458" type="UNKNOWN" weightage="20" keywordseo="PPF-and-EPF">PPF and EPF</keyword> investments eligible for a range of income tax benefits. Overview of EPF and PPF In India, two types of provident funds are popularly known namely Employees’ Provident Fund or EPF and Public Provident Fund or PPF. Under the existing regulations, EPF is automatically deducted from the salary of the salaried class individuals by their employees and paid into their respective EPF accounts maintained with the EPF department under the auspices of the Government of India. The choice to invest in a PPF scheme solely rests with the investor. This means that if you are a salaried individual, you do not have a choice not to subscribe to the EPF scheme. Hence, the deductions will be invariably made from your salary to be invested into your EPF account. But, whether you wish to invest in a PPF scheme is purely optional. EPFO or Employees Provident Fund Organization is a retirement fund body that governs the EPF scheme. PPF scheme is offered by the Government of India through banks and post offices. How do these schemes compare Interest rates The government decides the interest rate of PPF year on year depending on several factors related to the country’s economy. Over the past several years, the interest rate of EPF contributions had never come down below 8.5 percent. The government decides the interest rates of PPF during every quarter. For the quarter ending in June 2018, the interest rate for PPF investments was fixed at 7.6% for example. Since the PPF investments come under the Exempt, Exempt, Exempt category, the returns are completely exempt from taxes. The principal amount, the maturity amount and the benefits earned on the investment are all qualified for tax exemption. How the EPF and PPF schemes operate If an individual works with a company that has more than 20 people on its rolls, EPF deduction is compulsory. The salaried employee contributes about 12 percent from their monthly salary towards EPF. The employer has to contribute an equal share of 12 percent which will be deposited in the employee’s account along with the employee’s contribution. Any citizen who is a resident of India can open a PPF account. To open a PPF account it is not necessary that the individual must be a salaried person. Members of Hindu Undivided Families (HUF) cannot open a PPF account. The tenure of investment in case of a PPF account is 15 years. Once this period expires, the investment can be extended for another 5 years. From the third financial year of opening the account, the investor can take a loan from the PPF account. From the seventh financial year, the investor can make partial withdrawals from this account.

What is the difference between PPF and EPF

(Eds: Adding details) New Delhi, Mar 5 () Retirement fund body EPFO on Thursday lowered interest rate on provident fund deposits to a seven-year low of 8.5 per cent for the current financial year. The the Employees' Provident Fund Organisation (EPFO) had provided 8.65 per cent rate of interest on EPF for 2018-19 to its around six crore subscribers. The decision was taken at a meeting of the the EPFO's apex decision making body -- the Central Board of Trustee (CBT). "The EPFO has decided to provide 8.5 per cent interest rate on EPF deposits for 2019-20 in the CBT meeting today," Labour Minister Santosh Gangwar said here after the meeting. The minister also said that the EPFO will have a surplus of over Rs 700 crore on providing 8.5 per cent rate of interest on EPF for this fiscal. A ministry source said, "The EPFO would have left with a surplus of over Rs 300 crore if it had provided 8.55 per cent rate of interest on EPF for this fiscal. There would have been a deficit if the EPFO had provided a rate of more than 8.55 per cent for current fiscal." The EPF interest rate announced for the current fiscal is lowest since 2012-13, when it was 8.5 per cent. The EPFO had provided 8.65 per cent interest rate to its subscribers for 2016-17 and 8.55 per cent in 2017-18. The rate of interest was slightly higher at 8.8 per cent in 2015-16. It had given 8.75 per cent rate of interest in 2013-14 as well as 2014-15, higher than 8.5 per cent for 2012-13. Now, the labour ministry requires the finance ministry's concurrence on the matter. Since the Government of India is the guarantor, the finance ministry has to vet the proposal for EPF interest rate to avoid any liability on account of shortfall in the EPFO income for a fiscal. The finance ministry has been nudging the labour ministry for aligning the EPF interest rate with other small saving schemes run by the government like the public provident fund and post office saving schemes. KKS MKJ

EPFO cuts interest rate on deposits to 7-year low of 8.5 pc for 2019-20

New Delhi, Mar 1 () The labour ministry is keen to retain an interest rate of 8.65 per cent paid on provident fund deposits to around six crore subscribers of retirement fund body EPFO for the current financial year, a source said. The apex decision making body of Employees' Provident Fund Organisation (EPFO) -- Central Board of Trustees -- is likely to consider the rate of interest on EPF (Employees' Provident Fund) deposits in its meeting scheduled on March 5, 2020. "The proposal to provide interest rate on EPF deposits for 2019-20 may come up for consideration and approval in the Central Board of Trustees (CBT) meeting on March 5," a source said. The source further said that the ministry is keen to retain the interest rate at 8.65 per cent, as was provided in financial year 2018-19. Speculations are rife that the interest rate on EPF may be lowered to 8.5 per cent for the current fiscal, a tad lower than 8.65 per cent provided for 2018-19. According to the source, the agenda for the CBT meeting has not yet been finalised and it is difficult to predict EPFO's income projections for the current fiscal, which will be the basis for fixing the interest rate. The finance ministry has been nudging the labour ministry for aligning the EPF interest rate with other small saving schemes run by the government like the public provident fund and post office saving schemes. The labour ministry requires the finance ministry's concurrence to provide a rate of interest on EPF deposits in a fiscal year. Since the Government of India is the guarantor, finance ministry has to vet the proposal for EPF interest rate to avoid any liability on account of shortfall in the EPFO income for a fiscal. The EPFO had provided 8.65 per cent rate of interest to its subscribers for 2016-17 and 8.55 per cent in 2017-18. The rate of interest was slightly higher at 8.8 per cent in 2015-16. It had provided 8.75 per cent rate of interest in 2013-14 as well as 2014-15, higher than 8.5 per cent for 2012-13. KKS DRR

Labour ministry keen to retain 8.65 pc interest rate on EPF deposits for 2019-20

New Delhi, Retirement fund body EPFO on Thursday started crediting 8.5% rate of interest on employees' <keyword id="45028" type="ORGANIZATION" weightage="20" keywordseo="Provident-Fund">provident fund</keyword> (EPF) for 2019-20 for its over six crore members, a senior official said. A large number of members of the <keyword id="6423266" type="COMPANY" weightage="20" keywordseo="employees-provident-fund-organisation">Employees Provident Fund Organisation</keyword> (EPFO) would be able to see their updated EPF accounts with credit of 8.5 per cent rate of interest for 2019-20, a senior official told . The official further informed that the <keyword id="126926" type="COMPANY" weightage="20" keywordseo="Labour-Ministry">labour ministry</keyword> has already sent the direction to credit the 8.5% interest on EPF for 2019-20 to the EPFO and the body has already started crediting interest into members account for the last fiscal. Labour Minster <keyword id="258830" type="PERSON" weightage="20" keywordseo="Santosh-Gangwar">Santosh Gangwar</keyword> said, "We had said that it would be our endeavour to provide 8.5% rate of interest on EPF for 2019-20. We have issued a notification to provide 8.5% rate of interest on EPF for 2019-20. We have also began the process to credit the said rate of interest into subscribers account." The minister also said that he has asked to ensure that all those members who are retiring on December 31, must get 8.5% rate of interest (for 2019-20). The process for capital gains for payment of 0.35% interest for 2019-20 has also been completed, he added. "It (8.5% interest) would comprise 8.15% from debt income and balance 0.35% (capital gain) from the sale of ETFs (exchange traded funds) subject to their redemption by 31st December, 2020," he said. Earlier in the day, Gangwar had approved the 8.5% rate for last fiscal after receiving the finance ministry's concurrence. Thereafter the direction was sent to the EPFO for crediting the interest on EPF into the subscribers' accounts. In March this year, the EPFO's apex decision making body <keyword id="225704" type="COMPANY" weightage="20" keywordseo="Central-Board-of-Trustees">Central Board of Trustees</keyword> headed by Gangwar had approved 8.5% interest rate on EPF for 2019-20. Earlier in September this year, the EPFO had decided to split 8.5% interest into two installments of 8.15% and 0.35% in its trustees meet headed by Gangwar. But later, the ministry decided to credit the entire 8.5% into subscribers' accounts in one go. SEE ALSO: <a href="https://www.businessinsider.in/stock-market/news/top-stocks-to-watch-tata-steel-vedanta-adani-green-tata-motors-maruti-mm-dhfl-v-mart-indian-bank-and-others/articleshow/80038635.cms">Top stocks to watch — Tata Steel, Vedanta, Adani Green, Tata Motors, Maruti, M&amp;M, DHFL, V-Mart, Indian Bank, and others</a> <a href="https://www.businessinsider.in/tech/mobile/news/checkout-the-list-of-upcoming-new-mobiles-in-january-2021-with-expected-price/articleshow/80039794.cms">Upcoming smartphones in India in January 2021</a> <a href="https://www.businessinsider.in/international/news/ten-of-the-most-outrageous-predictions-for-2021-according-to-saxo-bank/slidelist/80040045.cms">From Amazon buying Cyprus to Germany bailing out France — here are ten of the most ‘outrageous’ predictions for 2021</a>

EPFO begins crediting 8.5% interest for six crore people — to reflect in EPF accounts from new year

New Delhi, Mar 5 () Retirement fund body EPFO on Thursday lowered interest rate on provident fund deposits to 8.5 per cent for the current financial year, said Labour Minister Santosh Gangwar on Thursday. The EPFO had provided 8.65 per cent rate of interest on EPF for 2018-19 to its around six crore subscribers. The decision was taken at a meeting of the the Employees' Provident Fund Organisation's (EPFO) apex decision making body -- the Central Board of Trustee. "The EPFO has decided to provide 8.5 per cent interest rate on EPF deposits for 2019-20 in the Central Board of Trustees (CBT) meeting today," Gangwar told reporters after the meeting here. Now, the labour ministry requires the finance ministry's concurrence on the matter. Since the Government of India is the guarantor, the finance ministry has to vet the proposal for EPF interest rate to avoid any liability on account of shortfall in the EPFO income for a fiscal. The finance ministry has been nudging the labour ministry for aligning the EPF interest rate with other small saving schemes run by the government like the public provident fund and post office saving schemes. The EPFO had provided 8.65 per cent rate of interest to its subscribers for 2016-17 and 8.55 per cent in 2017-18. The rate of interest was slightly higher at 8.8 per cent in 2015-16. It had given 8.75 per cent rate of interest in 2013-14 as well as 2014-15, higher than 8.5 per cent for 2012-13. KKS MKJ

EPFO cuts interest rate on deposits to 8.5 pc for 2019-20

Finance Minister <keyword id="42575" type="PERSON" weightage="20" keywordseo="Arun-Jaitley">Arun Jaitley</keyword>’s decision to tax the interest earned on 60% of your Employee Provident Fund (<keyword id="45027" type="ORGANIZATION" weightage="20" keywordseo="EPF">EPF</keyword>), when withdrawing before maturity, will burn a hole in both your heart and pocket. While his intention was to earn more revenues for the government’s big ticket social schemes, it hasn’t really gone down well with the salaried class, who have traditionally seen the EPF as a safe source of investing their hard earned money, for a very stable interest-earned regime. 
	 
	Currently, a company can contribute up to 12% of the basic component of someone’s salary as EPF. 
	 
	Still scratching your heads to figure how this new announcement will hit your safe savings? Allow us to explain! 
	 
	Let’s say you earn Rs 2.5 lakh as salary annually, it would mean your in-hand-monthly income would be roughly around Rs 20,000, which would include components such as Basic, HRA, Transport and Special Allowance. Assuming that your basic salary is Rs 11,000, basis how you’ve negotiated your salary structure with your employee, the EPF contribution then would amount to Rs 1,320. As per the new policy, interest earned on 60% of this amount, which is roughly around 8.8% interest on their EPF contribution. It means that the the government will levy tax on the interest levied on Rs792 . So, in the case you have quit the company and want to withdraw your EPF, the government will now tax the interest received on the contribution, 
	 
	Similarly, for an employee with an annual package Rs 5 lakh, the monthly salary is a little over Rs 41,000. If we assume that the basic salary is Rs 15,000, the monthly EPF contribution would be Rs 1800. The monthly interest received on 60% of the Rs1,080 amounts to Rs 95 at 8.8% rate of interest. 
	 
	For an individual earning Rs 10 lakh, the monthly salary is Rs 83,000. The basic component is assumed to be Rs 30,000 and the EPF contribution amounts to Rs3,600. The interest received on 60% of this saving i.e. Rs 2,160, is taxable. 
	 
	Well, it seems the government will be able to churn out huge revenues in FY17 by taxing the EPF. Won’t be surprised if the NaMo government once again meets its revenue target in 2016 as well. But we feel your pain!

Withdrawing your EPF? We tell
you how your savings will take a hit

No one can hope for a steady income throughout life. The earning potential significantly comes down during old age and hence you can never overlook the importance of saving money for retirement. With proper planning, this is never a difficulty. What you must know on saving for retirement <ul><li>To <keyword id="7839787" type="UNKNOWN" weightage="20" keywordseo="save-for-retirement">save for retirement</keyword>, it is never too early or too late. </li><li>When you are starting to save money for the future, try to save as much as you can.</li><li>If you are already nearing the retirement age, you must increase the percentage of your saving. </li><li>Nevertheless, the earlier you start saving for retirement, the better for you.</li><li>Even if you have started late there are ways to increase your retirement savings. </li></ul>Tips on saving for retirement Never wait for it. Start saving for retirement today. Saving, investing, and reinvesting can move you forward successfully. If you can invest a good amount of money when you are young, it is going to benefit you immensely during your old age. Contribute to EPF If you are a salaried employee and if your employer contributes to EPF, nothing like that. You are already travelling safely. However, ensure that you do not withdraw or take loans from the EPF accumulations. If you take loans from EPF or close it down before you retire, the whole purpose of EPF is falsified. Also, contribute to EPF as much as you can. Senior Citizens' Saving Scheme (SCSS) This scheme is the most popular choice for retirees. Available only to senior citizens or those that retire early, you can avail of the SCSS from a bank or post office. Those retiring early avail of this scheme within a month of receiving their funds on retirement. Post Office Monthly Income Scheme POMIS is a five-year investment. The maximum cap of this investment is Rs 9 lakhs in case of joint ownership and Rs 4.5 lakhs in case of single ownership. For every quarter, the interest rate is set. It is roughly about 7.8% at present. The interest is payable monthly. The interest amount can also be credited to the same account. Fixed deposits FD or bank fixed deposits are yet another popular choice among retirees for saving money. FDs are easy to operate. They are safe and provide fixed returns in a risk-free way. Though the interest rates are falling with the years passing by, senior citizens get to earn an extra percentage of interest. In terms of tenure, fixed deposits also offer flexibility. Mutual funds Following retirement, the non-earning period might extend to two decades or more. Hence a portion of the investment needs to be backed by equity. Retirement income will be subject to inflation. Equities assure returns that are inflation-adjusted and are a better choice in several regards. Tax-free bonds Tax-free bonds are issued to government-backed institutions. These are listed securities and hence can be sold on stock exchanges. Since tax-free bonds mature only after 10, 15 or 20 years, you must make sure you will not need the invested funds in between.

You Searched For "EPF rate" and got 8 results

EPFO retains 8.5% interest rate for 2020-21

PTI

What is the difference between PPF and EPF

BI India Bureau

EPFO cuts interest rate on deposits to 7-year low of 8.5 pc for 2019-20

PTI

Labour ministry keen to retain 8.65 pc interest rate on EPF deposits for 2019-20

PTI

EPFO begins crediting 8.5% interest for six crore people — to reflect in EPF accounts from new year

PTI

EPFO cuts interest rate on deposits to 8.5 pc for 2019-20

PTI

Withdrawing your EPF? We tell you how your savings will take a hit

Purba Das

How to save Money for Retirement

BI India Bureau

Popular Keywords

Buying Guides