EPF Interest Credited After March 31? Keep These Things in Mind While Filing Your ITR

If the interest on your Employees’ Provident Fund (EPF) account has been credited after the financial year ended, you're not alone. This is a common occurrence due to administrative delays. However, it can create confusion when filing your Income Tax Return (ITR) and may even result in tax notices if not handled correctly. Here’s a simple and clear guide to help you avoid tax complications related to EPF interest.

🔍 Why is EPF Interest Credited Late?

Though interest is calculated monthly on your EPF account, it is usually credited at the end of the financial year—often even later, around July or August. This delay happens because:

• The EPF interest rate is declared late by the government.

• EPFO takes time to complete internal formalities.

So, even if your passbook shows interest for FY 2024-25, the actual credit may reflect in FY 2025-26.

🚫 Don’t Report Interest in the Wrong Financial Year

Even if the interest pertains to FY 2024–25, if it is credited in July 2025, you must report it in your ITR for FY 2025–26 (AY 2026–27). Reporting it under the wrong year may cause mismatches with your AIS (Annual Information Statement) and Form 26AS, leading to:

• Tax notices

• Return going under scrutiny

📝 What If You Filed ITR Before Realizing This?

If you’ve already filed your ITR and later find that TDS has been deducted on the credited EPF interest:

Visit the AIS portal

Select the relevant transaction

Click on “Submit Feedback”

Choose the option:
"The information is correct but pertains to a different financial year"

This ensures the IT department is informed, reducing the chance of penalties or future scrutiny.

📘 Keep an Eye on Your EPF Passbook

Regularly check your EPF passbook via:

• EPFO website

• UMANG App

• EPFO SMS service

If the interest is not credited within two months of the financial year-end, raise a grievance on the EPFiGMS portal or contact the EPFO helpline.

⚠️ Avoid Withdrawing Funds Before Interest is Credited

If you withdraw your EPF amount before interest is credited, you may lose the interest for that year. So, if you're resigning or closing your account, wait for the interest to reflect in your passbook before withdrawing funds.

✅ Comply with Tax Rules and Avoid Trouble

EPF interest credit delays are normal. But to stay clear of issues:

• Declare interest in the correct financial year

• Use AIS feedback feature if needed

• Monitor your EPF account status regularly

This way, you can file your ITR confidently and avoid any unnecessary tax notices or penalties.

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