EPFO Introduces Revamped Appendix-E Functionality for Smoother Taxation Process to Correct TDS Deduction Errors

The Employees’ Provident Fund Organisation (EPFO) has recently launched revamped Appendix-E functionality to correct wrongly deducted Tax Deducted at Source (TDS).

This action follows after EPFO noted that in certain surrender or cancellation of exemption cases, the TDS on interest annually was being incorrectly deducted from the total Past Accumulations rather than solely on the taxable interest earned. This was due to the incorrect data given by certain employers.

On April 25, 2025, the Ministry of Labour & Employment issued a notification announcing the deployment of a revamped Appendix-E functionality to correct errors in TDS deductions and streamline processes across field offices. It will be launched on May 1, 2025.

This will correct the bifurcation of taxable and non-taxable member balances. Additionally, it will also help adjust the Taxable Opening Balance, Non-Taxable Opening Balance, and Total Opening Balance.

The notice further states that once the new system is deployed, old pending tasks will be rejected. Therefore, the field officers are advised to complete any pending tasks in the old Appendix-E system by 30/04/2025.