Highlights:

1. For EPF subscribers whose Universal Account Number (UAN) is linked to their Aadhaar and bank account number, they can approach the EPFO directly for claims, bypassing the employers

2. In case of full withdrawal from EPF accounts, subscribers are required to mention only their names, registered mobile number, UAN, Aadhaar number, date of joining and leaving the company

3. For partial withdrawals from EPF accounts, subscribers are not required to submit extra documents

With an aim to provide withdrawal ease to its EPF subscribers, retirement fund body Employees’ Provident Fund Organisation(EPFO) has started a simplified one page claim withdrawal form, The Hindustan Times reported.

Employees’ Provident Fund (EPF) allows withdrawal if subscriber is unemployed for at least two months or partial withdrawals for events such as medical emergencies, children’s education or buying a house, cited report on Monday.

For EPF subscribers whose Universal Account Number (UAN) is linked to their Aadhaar and bank account number, they can approach the EPFO directly for claims, bypassing the employers, it said.

Earlier, EPF subscribers had to fill up form 19 for complete withdrawal, form 10C for pension fund scheme certificate to retain membership of Employees’ Pension Scheme or to claim withdrawals, and form 31 for partial withdrawals.

Now, with the EPFO’s introduction of the new form called the composite claim form all forms have been merged into one. It has launched two types of EPF withdrawal forms- Aadhaar and non-Aadhaar forms.

The Aadhaar-based composite form is meant for individuals who have activated their UAN and linked it with their Aadhaar and bank account number, and whose details are embedded in the UAN portal, the news report said.

According to the report, in case of full withdrawal from EPF accounts, subscribers are need to mention only their names, registered mobile number, UAN, Aadhaar number, date of joining and leaving the company.

Moreover, for partial withdrawals, there is no longer need of extra documents. Subscribers have to mark the purpose for which they need the money and how much. Sign the form, attach a cancelled cheque and then the subscribers can go ahead.

The non-Aadhaar form needs details of EPF subscribers such as date of birth, father’s name and bank account details. It has to be signed by subscribers and their employers.

The report citing the new form further stated that for partial withdrawals subscribers do not have to submit proof.

For instance, if partial withdrawal was for a wedding (of self or children), EPF subscriber had to give supporting documents such as the wedding invitation card. In the new form, subscriber’s signature is enough. But there is a disclaimer at the bottom which states that if the funds are used for any other purpose, the subscriber is liable to return the money with penal interest.

But if partial withdrawal is for a medical emergency, subscriber still need to submit proof like medical certificate and certificate by the employer that employees’ state insurance (ESIC) facility is not available to the member, it added.

EPFO plans to launch an online facility from May this year for withdrawals, but this can only be used by individuals with Aadhaar and bank account-linked UAN, cited the report.

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New Delhi: Retirement fund body EPFO will deduct tax at source from next month on PF withdrawals where accumulations are over Rs 30,000 and the employee has worked less than five years.

“The Finance Act, 2015 (20 of 2015) has inserted a new section 192A regarding the payment of accumulated provident fund balance due to an employee. The provision shall take effect from June 1, 2015,” an EPFO circular said today.

“Income Tax shall be deducted at source (TDS)… If at the time of payment of the accumulated PF balance is more than or equal to Rs 30,000 with service less than 5 years,” it added.

According to the circular, TDS will be deducted at the rate of 10 percent provided PAN is submitted.

However, in case Form 15G or 15H is submitted by the member, then no TDS shall be deducted. These forms are to declare that their income would not be taxable after receiving payment of their PF accumulations from EPFO.
While Form 15H is submitted by senior citizens (above 60 years of age), Form 15G is submitted by claimants below the age of 60 years.

As per the circular, TDS will be deducted at the maximum marginal rate of 34.608 percent if a member fails to submit PAN or Form 15G or 15H.

However, there are certain exceptions to deduction of TDS by EPFO. TDS shall not be deducted in case of transfer of PF from one account to another PF account.

Besides, it will not attract TDS if the employee is terminated from service due to ill health of member and discontinuation or contraction of business by employer.

EPFO will also not deduct TDS if the employee withdraws PF after a period of five years of continuous service, including service with former employer.

The body will also not deduct TDS where payment is less than Rs 30,000 but the member has rendered service of less than 5 years.

It would also not deduct TDS if the employee withdraws an amount more than or equal to Rs 30,000 with service of less than 5 years but submits Form 15G/15H along with his/her PAN.

The proposal to deduct TDS on PF withdrawals was part of the Finance Bill, 2015.
PTI

Read on : Zee News

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NEW DELHI: Retirement fund body EPFO is likely to provide nine per cent rate of interest on PF deposits for the current fiscal to its over five crore subscribers, slightly higher than 8.75 per cent paid in 2013-14.

“The initial estimates indicate that the Employees’ Provident Fund Organisation (EPFO) can easily provide nine per cent rate of interest on PF deposits for 2014-15,” a source said.

According to him, the improved market conditions, especially after the formation of a new government at Centre last month, have raised expectations of higher yields on various investments by the body.

EPFO manages a corpus of over Rs 5 lakh crore. It has received Rs 71,195 crore as incremental deposits from its subscribers under social security schemes run by it during 2013-14, which is 16 per cent higher than Rs 61,143 crore collected by it in 2012-13.

The source said EPFO also plans to unlock its investment of around Rs 55,000 crore in Special Deposit Scheme (SDS). The government pays a fixed rate of eight per cent on SDS to EPFO which is lower than other investment options available in the present legal frame work.

EPFO is also expected to improve yields or returns on its investment under the new norms prescribed under an investment pattern notified by the Labour Ministry last year.

According to the new pattern, EPFO can invest up to 55 per cent of its funds in debt securities issued by banks and financial institution and other body corporates.

The new investment pattern also allows EPFO to invest up to five per cent of its corpus into money market instruments, including units of mutual funds, equity linked schemes regulated by Securities and Exchange Board of India.

The new investment norms also provide for parking up to 55 per cent of the EPFO funds in a new category comprising government and state bonds.

Source: http://economictimes.indiatimes.com/

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