Private provident fund trusts have enough surplus to be able to pay over 9.5 per cent interest on PF deposits, says an analysis by the Employees’ Provident Fund Organisation’s (EPFO). Some of the private PF trusts have sufficient funds to pay interest of up to 11.5 per cent on the retirement funds of their employees, the analysis said.
The EPFO sought details of the private funds after they expressed difficulty in paying the higher interest of 9.5 per cent on PF deposits for 2010-11.
The private funds have argued that EPFO could pay 9.5 per cent interest because it had a surplus of Rs 1,731 crore in its interest suspense account, but they could not do so in absence of any such surplus.
The PF trusts are required to mandatorily match the interest rate on provident fund provided by EPFO.
On excess payment of interest above exemption limit who will be liable for TDS on that excess payment a)Employer or b) PF Trust ?
Please reply me on email: dkmokani@gmail.com
i need a bit of clarifiction from an expert in provident fund. govt has allowed interst on epf to be raised to 9.5%, while they are silent on ppf. Before reducing the interest(thanks to dear chidambaram),interest on both epf and ppf were same. but now a disparity has been created. epf gets 9.5% while ppf continues with the reduced interst of 8%.were not epf and ppf governed by the (same or similar)act and rules to start with,except of course with the generosity of employers’ equal contribution for the mandatory part of individual contribution to epf–both earning same interest to the benefit of employee ? Then why this disparity now? look at it from a sense of justice, and common sense also. epf accumulation(employers and employees total contribution) earned interest even after employees ceased to be employees if they wished not to withdraw the same. ppf is generally used by self employed/ retired people/senior citizens/widows/dependents as a saving for their rainy days(who do not normally have an income from employers,let alone employers mandatory contribution).in view of this, is it not discriminatory to give lower interest to ppf and highr interest to epf? is it an over-sight on the part of rule makers,or is it a deliberate action to deny a benefit to ppf deposit holders? OR,is it that the epf lobby is more powerful as it has the blessings of trade unions and a labour minister while ppf depositors ara unorganised and, may be, are not even aware of this discrimination? dattatreyahg