PR Rules: The central government has slammed the account holders of the Employees Provident Fund Organization (EPFO). Now, employees will have to pay tax on the interest received on contribution of more than 2.5 lakh rupees. This new rule will apply to contributions made on or after 1 April 2021. Earlier, the interest on EPF is tax free. This is an important information for millions of EPFO account holders.
Now the government is going to tax the interest on PF deposits. However this will not apply to all employees. The category has been fixed for this. You should also check whether you fall into this category. If yes, then you have to be ready to loose your pocket now. Currently the rate of interest on EPF is 8.5 percent. The central government has decided to pay 8.50 percent interest on the EPF for 2019-2020. 8 in 2018-19 65 percent. 12 percent of the basic salary will be deposited in the EPF account of the employee and 12 percent of the company. There is also a rule to contribute up to 100 percent of basic salary. The additional contribution is called Provident Fund. It is also exempt from tax under Section 80C. Under Section 11 and 12 of Section 10 of the Act, there is no tax on the interest received on the amount deposited in the Employees Provident Fund Organization. In such a situation, employees deposit large amounts of money in EPF account.
Supreme court decides to reconsider 2019 order on employee pension
The Supreme Court now allowed review petitions filed by the Employees Provident Fund Organization (EPFO) and decided to reconsider the previous order, which allowed pay in proportion to the Provident Fund pension. The Supreme Court has withdrawn its 2019 order which paved the way for higher pension for employees by removing the current wage ceiling of ceiling 15,000. An SC bench headed by Justice Udaya U. Lalit allowed review petitions filed by the Employees Provident Fund Organization (EPFO) and decided to reconsider the previous order, Which allowed salary in proportion to the provident fund pension. The bench jointly heard the review petition of EPFO and the appeal filed by the central government on Friday last week. The court order was issued a day earlier. Starting on February 25, the bench will now re-examine the 2018 High Court judgment which asked the organization to pay full pension to retired employees on the basis of their total salary instead of paying the amount, But a pensioner’s contribution is calculated, with the maximum being 15,000 per month.
This is the current rule
At present, an organized sector employee pays 12 per cent of his basic salary as compulsory Employees Provident Fund (EPF) every month and a matching amount is contributed by the employer. Out of the employer’s contribution, 8.33 percent goes towards pension contribution, but this amount is ₹ 1,250 per month. The remaining 3.67 percent goes to provident fund. While EPFO receives an EPS contribution of around ₹ 36,000 crore per year from over 60 million subscribers, it has more than 2.3 million pensioners, who receive a pension of ₹ 1,000 every month. However, his contribution to PF is less than a quarter of it.
Supreme Court rejected EPFO’s appeal
By a brief order on April 1, 2019, the Supreme Court dismissed EPFO’s appeal against the Kerala HC decision, forcing the retirement fund body to file a review petition. At the same time, the Union Labor Ministry also decided to file a separate appeal against the HC decision to highlight that such an order would make the organization financially inseparable as there would be a shortfall of several thousand crores every year. The Kerala HC verdict was not implemented, citing the pendency of the case in the Supreme Court while the Labor Ministry appealed to stay the HC verdict.
Also Read: LIC’s Jeevan Arogya Plan: Now no worries about illness, you will get 4000 rupees benefits every day
This is the rule of EPF deduction
The organized sector companies which come under the purview of EPFO Employees Provident Fund Organization, give full benefits of EPF (Employee Provident Fund) to their employees. Its rule is fixed. Under this, a contribution from both employer and employee in EPF is fixed which is made by adding dearness allowance to the basic salary of the employee. It is 12-12 percent of the basic salary + DA. Of the company’s 12 percent contribution money, 8.33 percent goes to the Employees Pension Scheme i.e. EPS.
Limit of withdrawal of so many rupees from EPS account
There are also rules to withdraw money from EPS EPS Account. Actually, there is 10 years of criteria for this. The more years of service before the 10-year period, the less money you will be able to withdraw together. Experts say that permission to withdraw lumpsum in EPS scheme can be obtained only if you have a job less than 10 years. The amount that will be returned to you will be decided according to Table D given in the EPS scheme 1995.
Withdraw or not when you leave your job
If you lose your job, you can withdraw money from EPF account or not, also know the answer. In fact, under the EPF scheme, the member has an option to withdraw the entire amount after the job is closed and to close the account. If the person is unemployed for more than two months, he can close the account. In such a situation, the lump sum can be withdrawn in full from the EPS and EPF account if the service is reduced by ten years.
ESIC facilitates, no affidavit is needed for unemployment benefits
People receiving unemployment benefits through Employees’ State Insurance Corporation (ESIC) will no longer have to give any kind of affidavit. Instead, only the information and scan papers sent online by the insured person will be valid. The Union Labor Ministry has taken this decision in view of the difficulties faced by the people in making the affidavit. In the situation arising out of Corona, many workers had to lose their jobs. As a result of this, from March 24, 2020 to December 31, 2020, the Center decided to give unemployment benefits under the Atal Insured Persons Welfare Scheme.
Complaint here if interest is not received in Employees Provident Fund (EPF) account
The government has started depositing interest in the Employees Provident Fund (EPF) account and the Provident Fund (PF) account. The Ministry of Finance is depositing 8.50 percent provident fund interest rate in the PF and EPF account of the members of the Employees Provident Fund Organization (EPFO). However, if an EPFO subscriber has yet to deposit PF interest in someone’s EPF or PF account, then he / she should get the EPFO official website – epfindia.gov.inBut a complaint has to be filed. But, before filing any PF interest credit complaint, an EPF passbook of EPF balance has to be checked. One can view the PF balance of any person through the Umang app or by logging on to the EPFO website mentioned above. To view EPF balance one has to download the Umang app on their mobile phone. Once the EPF Umang app is installed in one’s mobile phone, one has to enter the registered mobile number and click on the ‘Service Directory’ option. Then the EPFO member has to go to the EPFO option and click on ‘View Passbook’ and check the EPF balance using UAN and OTP. Therefore, after checking someone’s EPF passbook balance, if the EPFO member finds that PF interest has not been credited to someone’s EPF account, he / she can get the EPFO website – epfindia.gov.inOne can lodge a complaint by logging on.
When checking EPF Balance EPF Balance try these methods for complaint
1] Log on to the official EPFO website epfindia.gov.in
2] Click on the register complaint on the home page
3] Status like PF member, EPF member, employer, etc. will be displayed on your computer monitor
4] Select PF Member for PF Interest Credit Complaint
5] Enter your security code and UAN
6] Click on ‘Get Details’
EPFO gives 56.79 lakh claim settlement in corona crisis, Rs 1,4310 crore as advance PF withdrawal
The government implemented a nationwide lockdown in March last year. More than six crore EPFO shareholders were then allowed to withdraw from their accounts an amount equal to three months basic salary and dearness allowance. A source said that as of 31 December 2020, EPFO has rejected 56.79 lakh withdrawal claims and disbursed Rs 14,310 crore for the same. The organization settled 197.91 lakh claims for final settlement, death, insurance and advances up to that period. Under this, EPFO has disbursed a total of Rs 73,288 crore. Of this, about 20 percent is related to Kovid-19 advance. A large number of people lost their jobs during the Corona crisis. The central government launched the Pradhan Mantri Garib Kalyan Yojana (PMGKY) on 26 March for the economically weaker sections due to the epidemic. as well as the, The government also facilitated withdrawal from EPFO. The organization has said that till December 31, it has paid Rs 14,310 crore to shareholders under the corona relief head. During this period, the organization has settled claims for 56.79 lakh advances. There will be no need to return this advance to the shareholders. How deeply the Corona crisis has affected the country’s employees, data from the Employees Provident Fund Organization (EPFO) shows.
EPFO launches electronic facility for PRINCIPAL EMPLOYERS to view EPF compliances of their contractors.#EPFO #SocialSecurity #HumHainNa #Pension pic.twitter.com/p2FJgXAoWI
— EPFO (@socialepfo) January 30, 2021
How to activate UAN?
युएएन कैसे एक्टिवेट करें?#EPFO #SocialSecurity #HumHainNa pic.twitter.com/QZiLOmf1Ot
— EPFO (@socialepfo) January 28, 2021
Know how to transfer EPF online
जानिए कैसे करें ई पी एफ ऑनलाइन ट्रांसफर#EPFO #SocialSecurity #HumHainNa pic.twitter.com/lvqCybMEiu
— EPFO (@socialepfo) January 27, 2021
Know how to transfer EPF online
जानिए कैसे करें ई पी एफ ऑनलाइन ट्रांसफर#EPFO #SocialSecurity #HumHainNa pic.twitter.com/ZQIHHKizYf
— EPFO (@socialepfo) January 25, 2021
Registered Mobile Number से 011-22901406 पर मिस्ड कॉल देकर सेकंड्स में जानें अपना पी एफ बैलेंस।#EPFO #SocialSecurity #HumHainNa #Pensioners pic.twitter.com/27EKKOvf6E
— EPFO (@socialepfo) January 24, 2021
