New Delhi: The finance ministry has clarified there is no loss of interest rate for Employees' Provident Fund Organisation (EPFO) subscribers and the delay in crediting interest for the last fiscal is due to software upgrade being conducted. It has further said that for all outgoing subscribers seeking settlement and also those withdrawing their deposits, the payments are being done inclusive of the interest.
"There is no loss of interest for any subscriber. The interest is being credited in the accounts of all EPF subscribers. However, that is not visible in the statements in view of a software upgrade being implemented by EPFO to account for change in the tax incidence," the ministry said in a tweet on Wednesday night.
The finance ministry's reaction comes after IT veteran T.V. Mohandas Pai raised queries on interest in the EPF deposits in a tweet. "For all outgoing subscribers seeking settlement and for subscribers seeking withdrawal, the payments are being done inclusive of the interest," the ministry said.
As per experts' views, the rules for the employer's delayed EPF contribution and non-deposit of contribution are two different things. "Even if an employer makes a delayed deposit of EPF contribution for April 2020, the employee will still receive interest from June 1, 2020," they said.
