EPFO Returns | EPF Low Interest Rate – EPFO may reduce the interest rate on Provident Fund (PF) deposits this financial year. The interest rate on PF was 8.65% for the previous financial year.
This information has been given by an official of the Labor Ministry. Let us know that EPFO currently has 4.5 crore members. In the EPFO PF Account, the Direct Credit of Exchange Trade Funds Units and other investments, especially the bonds, can reduce the interest due to low income.
EPFO Income Statement
In December 2016 the Trustees of EPFO had decided to reduce the interest rate on EPF from 8.8 percent in 2016-17 to 8.65 percent in 2016-17. The official said that the EPFO is yet to prepare income estimates for the current financial year. This estimate will be the basis of interest paid on this PF this financial year.
EPFO Accounting Policy
Earlier on Thursday, the EPFO had approved an accounting policy for valuation and accounting of equity investments. This policy was prepared in consultation with IIM Bangalore. This policy will enable the EPFO to credit ETF units at the end of the financial year in the PF account of Member Employees. In this way, every PF account holder will look at Provident Fund Balance Cash Balance and ETF Units.
EPFO Returns On PF Withdrawal
However, the dividend on the ETF will be credited to the subscriber’s account, but Member Employees will be able to get the full rate of returns on these equity-linked investments at the time of PF withdrawals. Subscribers will have the option of withdrawing PF from their PF account while taking Advance PF. They will be able to do this from the cash segment or by liquidating the ETF units.