EPFO Subscribers Latest Update: After the presentation of Budget 2023-24, new decisions have also been taken regarding EPF withdrawal, which is going to directly benefit the people keeping money in Employees Provident Fund and withdrawing money from it. This fixed deposit, which gives money at an interest rate of 8.10 percent, will now be able to give better returns to the people.
Less TDS will be deducted on withdrawing money from PF
A major decision has also been taken in the budget regarding the Employees’ Provident Fund (EPF). Finance Minister Nirmala Sitharaman has changed the tax rules regarding withdrawal from PF. Now 20 percent TDS will be charged instead of 30 for withdrawing money from PF account in less than five years. This will also benefit those account holders whose PAN has not been updated yet.
What is the new rule?
As per the rules, if an account holder withdraws money within five years, he has to pay TDS. At the same time, no TDS is levied after five years. If PAN card is not linked, 30% TDS is deducted. This rate has also been reduced to 10 percent. The new rule will be applicable from 1 April 2023.
PF interest rate may increase
In the upcoming meeting of EPFO, decisions can be taken to further increase the currently available interest rates and attract investors for a long time. The increase in the new interest rates will be done keeping in mind that people invest in this fund for a long period and many other options available in the market for similar long periods are giving higher returns. According to estimates, soon up to 9 percent return can be received on investment in EPFO. In 2016 this return was 8.5% and now it is 8.1%.
Deadline to apply for higher pension extended
The Labor Ministry said in a statement on Monday, “Now on the demand of the union of workers / employers, the Central Board of Trustees has decided to extend the last date for receiving applications from such workers to May 3, 2023.”
