The Ministry of Finance has notified the Interest rate on Special Deposit Scheme for Non-Government Provident, Superannuation and Gratuity Funds till September 30, 2023 through vide notification no. F. No. 5(3)-B(PD)/2023 published on 4th July 2023.
The deposits made under the Special Deposit Scheme for Non-Government Provident, Superannuation, and Gratuity Funds, as announced in the Ministry of Finance (Department of Economic Affairs) Notification No.F.16(l)-PD/75 dated June, 1975, will now accrue interest at a rate of 7.1% (seven point one percent) starting from July, 2023 until 30th September, 2023.
The notification stated that “lt is hereby notified that the deposits made under the Special Deposit Scheme for Non-Government Provident, Superannuation and Gratuity Funds, announced in the Ministry of Finance (Department of Economic Affairs) Notification No.F.16(l)-PD/75 dated June, 1975, shall with effect from July, 2023 to 30th September, 2023 bear interest at 7.1% (seven point one percent). This rate will be in force w.e.f. 1st July, 2023.”
Non-government provident funds refer to retirement savings schemes that are established and managed by organizations other than the government. These funds are typically created by private companies, institutions, or other entities to provide retirement benefits to their employees or members.
Superannuation is a pension scheme or retirement savings plan that is typically provided by employers to their employees. It is a way to accumulate funds over the course of a person’s working life, which are then accessed upon retirement.
Gratuity funds are established with the aim of creating a reserve of funds specifically allocated to provide gratuity benefits to employees, which are determined based on their years of service. The calculation of the gratuity amount usually takes into account the employee’s salary and the duration of their employment with the organization.
Subscribe Taxscan Premium to view the JudgmentSupport our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
