If interest is credited in the EPF account after the end of the financial year, then there is no problem with it. However, this can lead to a mistake in filing ITR, which can end up causing a tax notice. Here we are going to tell you the right plan, which can help you avoid tax difficulties related to EPF interest.

Delay in EPF interest is not a problem. Although the EPF account is calculated every month, it is deposited at the end of the financial year. Apart from this, there is a delay due to some work in EPFO.

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Do not show interest in the wrong year.

Now the interest is of the financial year 2024-25, but if it has been credited in July, then it should be shown in the ITR of the financial year 2025-26. If you show this interest in the wrong financial year, then there may be a match in AIS and Form 26A, S, and you may be sent a notice. Not only this, your return can be sent for scrutiny.

Give feedback in case of error in AI.S.

If ITR has already been filed, and later it is known that TDS has been deducted on EPF interest, then immediately go to the AIS portal. After this, select ‘Submit Feedback’ regarding that transaction. After this, choose the option of ‘Information is correct, but it relates to a different financial year’. By doing this, the Income Tax Department gets the correct information, and you can avoid investigation or penalty.

Keep an eye on the EPF passbook.k

Always check your EPF account passbook regularly. Get updates from EPFO’s official website, UMANG app, or SMS service. If the interest is not credited after 2 months, then complain on the EPFiGMS portal. Apart from this, contact the EPFO helpline. By the way, by filing a complaint, the problem is solved within a few days.

Do not withdraw before the interest is credited

If EPF money is withdrawn before interest is credited, then interest will not be paid for the whole year. Pay special attention in case of resignation or account closure. Make a partial or full withdrawal only when the interest amount is visible in the passbook.

Follow tax rules and avoid problems.

Delay in getting interest money in EPF is a process. But if you show interest in ITR in the correct financial year, give correct feedback in AIS, and keep an eye on the passbook, then any tax notice or penalty can be avoided.