In a step towards improving data accuracy and tax compliance, the Employees’ Provident Fund Organisation (EPFO) has announced a revamped Appendix-E functionality, scheduled for deployment on May 1, 2025.
The initiative addresses issues observed in cases where PF trusts surrendered or lost their exemption status. In some instances, Tax Deducted at Source (TDS) on annual interest was wrongly calculated on the entire past accumulations, rather than on the actual interest earned on taxable contributions, due to incorrect data submission by employers.
To resolve this, the revamped Appendix-E will:
- Enable bifurcation of taxable and non-taxable member balances.
- Allow adjustment of Taxable Opening Balance, Non-Taxable Opening Balance, and the Total Opening Balance.
- Maintain all features from the existing Appendix-E interface.
Important Advisory:
- All pending or in-progress tasks in the current Appendix-E system will be rejected upon the deployment of the new version.
- Field Offices must ensure that all such pending tasks are completed by April 30, 2025.
This upgrade is expected to significantly reduce errors and facilitate smoother processing of member balances during exemption transitions.
