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EPFO Members yet to get clarity on Interest Component Taxation:- The stakeholders of EPFO including the subscribers and the employees are left puzzled about the interest on the employees' provident fund contributions over Rs 2.5 lakhs. A clarity is expected from the Finance Ministry or CBDT about the interest earned for Rs 2.5 lakh crores will be taxed for the current year for all the years. The financial year ends on March 31st and there is just less than 15 days left for the splitting of the PF accounts to implement the announced budget that was announced last year. The Employees’ Provident Fund Organisation (EPFO) and organizations or trusts managing staff PF contributions are waiting for a clarity.

The Union Budget last year announced that the interest earned on the EPFO in excess of Rs 2.5 lakhs per year would be taxable. Later, the CBDT announced that the EPF account will have two parts or accounts. One can take the non-taxable portion and the other can take the cover taxable portion. If unaddressed, there would be lot of confusion across the nation. The Central Board of Direct Taxes (CBDT) issued a circular on September 1st but the experts are waiting for more clarity on the subject.