EPF interest delays: How does it impact compounding, tax filing?
Mint Mumbai|November 11, 2024
Subscribers urge EPFO to credit interests on time amid rising concerns over fund transparency, tax implications
Shipra Singh
EPF interest delays: How does it impact compounding, tax filing?

Chennai-based Sudarshan Jain was in for a shock when he checked his Employee Provident Fund (EPF) passbook in August this year. Interest on his EPF for the financial year 2023 and 2024 had not been credited. The timeline coincided with his job change, so he was convinced that his account never got transferred from his previous to current employer.

"I enquired with my company and they informed me that the account was transferred successfully. I ran helter skelter for one month trying to figure out whether my job change had impacted interest credit or if there was another reason. On not getting a response from EPFO support, I went to their X (erstwhile Twitter) account to lodge a complaint, only to find out there were several others like me," he said.

Jain is right. Delay in EPF interest payment is a common concern for several subscribers. This issue is not specific to any one financial year and, in fact, recurs year after year. Moreover, changing companies does not impact the interest payment since EPFO systems calculate the interest till date of claim settlement, said Vishwanath B G, associate director, Mercer Wealth India.

A quick glance at EPFO's X account shows the scale of the problem of delays in interest credit. Most complaints are with respect to the credit of interest for the financial year 2023-24 as the EPFO had revised the rate to 8.25%.

In a response to a customer's grievance raised on X, EPFO replied that 93% cases have been already processed since August 2024 for the interest payment for FY 2023-24. A few customers have also complained about not getting interest for FY 22-23, as is the case with Jain.

The concern for most subscribers is that they might be losing the benefit of compounding due to the delays in interest payment.

Bu hikaye Mint Mumbai dergisinin November 11, 2024 sayısından alınmıştır.

Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.

Bu hikaye Mint Mumbai dergisinin November 11, 2024 sayısından alınmıştır.

Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.

MINT MUMBAI DERGISINDEN DAHA FAZLA HIKAYETümünü görüntüle
World Bank calls for reforming skills training in India
Mint Mumbai

World Bank calls for reforming skills training in India

India must make a coordinated effort to reform and rebrand vocational skill training, besides aligning education with the job market, to leverage its demographic advantage to meet the $5-trillion target for its economy, the World Bank said.

time-read
2 dak  |
November 23, 2024
Mint Mumbai

FCPA cases take long to conclude after indictment

For investors keen to know the fate of billionaire Gautam Adani's indictment by US authorities, the watchword is patience.

time-read
2 dak  |
November 23, 2024
Short-covering, relief rally add ₹7.27 trillion wealth
Mint Mumbai

Short-covering, relief rally add ₹7.27 trillion wealth

Markets up 2.39% to hit the highest in six months, a day after Adani's indictment

time-read
2 dak  |
November 23, 2024
Wetter monsoon slows pace of adding new transmission lines
Mint Mumbai

Wetter monsoon slows pace of adding new transmission lines

India's addition of new power transmission lines fell by half over a year earlier in the April-October period as a wetter-than-usual monsoon slowed work.

time-read
2 dak  |
November 23, 2024
COP29's $1.3 tn fund plan disappoints Global South
Mint Mumbai

COP29's $1.3 tn fund plan disappoints Global South

The 29th edition of the UN climate change conference in Azerbaijan emerged from a deadlock with an annual climate finance goal of $1.3 trillion for developing countries, much to the disappointment of the Global South.

time-read
3 dak  |
November 23, 2024
Jaguar rebrand is pink, diverse and doesn't feature any cars
Mint Mumbai

Jaguar rebrand is pink, diverse and doesn't feature any cars

Luxury automaker Jaguar is betting that a colorful and youthful rebrand will help it successfully launch fully into the electric-cars market.

time-read
3 dak  |
November 23, 2024
Mint Mumbai

Services up as manufacturing slows in Nov

The HSBC Flash India Services PMI was at 59.2 in Nov from 58.5 in Oct; manufacturing PMI fell slightly from 60.4 to 60.2

time-read
1 min  |
November 23, 2024
MSMED may protect medium firms too
Mint Mumbai

MSMED may protect medium firms too

The Centre may consider including medium enterprises for the protection granted under MSME Development (MSMED) Act, 2006, to resolve payment disputes.

time-read
1 min  |
November 23, 2024
Europe boosts Indian textile exports in FY25
Mint Mumbai

Europe boosts Indian textile exports in FY25

Demand for Indian handloom, apparel partly fuelled by Bangladesh crisis

time-read
2 dak  |
November 23, 2024
Mint Mumbai

RBI nudges banks to cut speculative bet in rupee

The Indian central bank, in a rare move, instructed some banks to cut their long positions on the dollar-rupee pair on Friday, seeking to curb speculative positions with the currency at a record low, four bankers familiar with the development told Reuters.

time-read
1 min  |
November 23, 2024