New Investment Pattern

New Investment Pattern For Exempted PF Trust

Retirement fund body EPFO has decided to impose a surcharge (penalty) on private PF trusts for any violation of investment rules and may withdraw exemptions in case of serious lapse.

The surcharge will be applicable at the rate of 0.0025% on the deviation in investment in government bonds from the mandated level till 2013-14. The penalty would be 0.0025% for PSU bonds and 0.005% in private sector bonds for any deviation from investment rules.

The surcharge will be higher for the prospective violators as it would be imposed at a steeper rate ranging between 0.25% to 1% for any future deviation from mandated investment in central and state government securities from 2014-15 onwards.

Similarly, the deviation in investment in bonds and securities of public financial institution would attract a surcharge from 0.25% to 1%.

The surcharge rate for investment rule violations will range between 0.5% to 2% in case of private sector bonds.