DELHI: The Employees Provident Fund
Organisation’s (EPFO) finance panel has recommended raising the interest
rate on statutory savings of over 5 crore subscribers from 8.75% to
8.95% during the current fiscal.
The proposal has to be endorsed by the
central board of trustees before the finance ministry notifies it. If it
goes through, it will be the highest return since the 9.5% paid in
2010-11 and the highest ever real interest rate (after netting out
inflation) in recent years. An 8.95% rate will translate into returns of
nearly 12% for those in the highest slab as the withdrawals and
interest earnings do not attract tax at the time of withdrawal.
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