Have you also noticed that the amount of interest in your Employees Provident Fund (EPF) account was deposited much after the end of the financial year? If yes, you are not alone. This is a general administrative delay, but this increases the possibility of confusion and mistake while filling the income tax return (ITR). Sometimes these mistakes can also cause tax notice. Here we are telling you a clean and simple plan so that you can avoid tax complications related to EPF interest, without any worry, without any trouble.
Why does EPF interest come late?
Interest in your EPF account is made every month, but it is usually deposited at the end of the financial year. Sometimes in July or August. This is because the government declares the interest rate late. EPFO also takes time in internal formalities. So even though interest is written in your passbook for the financial year 2024-25, it can only be seen in the credit financial year 2025-26.
Even though the interest is of the financial year 2024-25, if it is credited in July 2025, it should be shown only in the ITR of FY 2025-26. If you show it in the wrong financial year, it can be a missamach in AIS (Annual Information statement) and Form 26AS, you may get a tax notice or your return may go to scrutiny.
Give feedback if you make a mistake in AIS
If you have already filed ITR and later discovers that TDS is cut on EPF interest, first go to the AIS portal, choose “submit feedback” on related transactions, then choose “information correct but it is related to a separate financial year”. With this, the Income Tax Department also gets the correct information and further investigation or penalty can be avoided.
Keep an eye on EPF passbook
Check your EPF account passbook regularly. Keep updating from EPFO’s website, UMANG app, or SMS service. If the interest is not credited even after 2 months, then file a complaint on the EPFIGMS portal. Or contact the EPFO helpline. Usually resolves in a few days of complaining.
Do not withdraw interest before interest credit
If you withdraw money from EPF before the credit credit, then you will not get interest for the whole year. In case of closing the resignation or account, take especially in mind. Do partial or complete withdrawal only after interest appears in the passbook.
Follow tax rules, avoid troubles
Late of interest in EPF is a common process. But if you show interest in ITR in the correct financial year, give the right feedback in AIS and keep an eye on the passbook, then you can easily avoid any tax notice or penalty.
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