Understanding EPFO Penalties: Do We Pay Full Amount or Is There a Cap on Interest and Penalties?

Hello Experts,

For example, if our PF payable is ₹10,000, and after calculating Section 14B (penalty) and Section 7Q (interest), the total amount exceeds the actual PF payable (e.g., ₹12,500 in penalties and interest), we need clarification on the final payable amount.

Should we pay the full ₹22,500 (₹10,000 PF + ₹12,500 interest & penalty), or is the total capped at ₹20,000 (₹10,000 PF + ₹10,000 as a maximum penalty/interest)?

Can someone confirm the exact calculation method or any maximum limit applicable under EPFO rules?

Regards,
Intuitive

Interest and Damages Calculation as per Sections 7Q and 14B

Interest as per Section 7Q is payable at 12% per annum and may exceed the principal amount depending on the days delayed. However, the damages as per Section 14B cannot exceed the principal amount. The damages have a slab structure: up to 2 months of delay at 5% per annum, 2 to 4 months at 10% per annum, 4 to 6 months at 15% per annum, and beyond 6 months of delay at 25% per annum, subject to a maximum of 100 percent.