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| EPF NEW RULE |
New Rule Of EPF (Employee Provident Fund) withdrawal 2020
According to the
government latest update on EPFO law and rule,in the period of LOCKDOWN EPF
employee withdraw the amount of 75% of the total EPF corpus can be withdrawn
after around a month of unemployment has passed. The Labour ministry have some
updates on EPFO rule 1952 on March 28th,2020.The employee take remaining
percentage of 25% is completely transferable and can be done so to a new account.
According to these law and rule there will be benefit to near about 6 Crore
members.
The Labour Ministry
has given permission for withdraw three months basic pay and DA as equal to PF deposit
money. This government have take decision against COVID 19 LOCKDOWN.
The EPF account
consists of contributions from the employer and employee. However, Now the
money withdraw in an EPF account will very easy.
There are 10 easy
steps for EPF withdrawal:
Step1: First of all
log on Unified Portal - EPFO
(https://unifiedportal-mem.epfindia.gov.in/memberinterface).
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| EPFO |
Step3: After login you have to check your KYC detail that your personal detail are verified or not in the manage tab.
Step4: After check
your KYC you go to Online service tab and opne dropdown menu and select your
claim form 31,19 and 10C.
Step5: In the claim
form you see all details the member with KYC than you fill your last four
digits of BANK account then verify then go to next process.
Step6: This step you
click on YES button then open next possess.
Step7: Click on Presided
to Online Claim.
Step8: Click on Reason
button in Claim form.
Step9: Now You can submit
application.
Step10: So, After
submitted your application send to the field office and then after processing
your required amount will credits in your BANK account.
EPF Interest rate 2019-2020
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| EPF INTEREST |
EPF money to fetch
lowest interest rate in over five years,EPFO employee will get the lowest
interest rate in over five years for the current financial year (2019-20).
EPFO had given 8.65%
interest rate on PF deposits for the previous financial year 2018-19.
The Employees
Provident Fund Organisation (EPFO) has recommended interest rate of 8.5% - the
lowest interest rate in over five years. This is lower than the 8.65% interest
rate given on employees' provident fund (EPF) deposits for the previous
financial year 2018-19.
The EPFO had provided
8.65% rate of interest to its employee for financial year 2016-17 and 8.55% in
year 2017-18. The rate of interest was slightly higher at 8.8% in financial year
2015-16.
The important Rules on EPF withdrawal:
Employee take money
from the EPF account cannot be withdrawn during employment, unlike a bank
account. This is a long-term retirement savings scheme. The money can be
withdrawn only after retirement of employee.
Partial withdrawal
from EPF accounts is permitted in the case of an emergency such as medical
emergency, house purchase or higher education and construction. Partial
withdrawal is subject to limits depending on the reason. The EPF employee
account holder can request online for partial withdrawal. Although the EPF
employee can be withdrawn only after retirement, early retirement is not
considered until the person reaches 55 years of age.
The EPFO allows
withdrawal of 90% of the EPF employee 1 year before retirement, provided the
person is not less than 54 years old. The EPF corpus can be withdrawn if a
person faces unemployment before retirement due to LOCKDOWN or retrenchment.
The EPF subscriber has to declare unemployment in order to withdraw the EPF
amount.
As per the old rule,
100% EPF withdrawal is allowed after 2 months of unemployment.
The EPF employee
withdrawal is exempted from tax but under conditions. Tax exemption on EPF
corpus is permitted only if an employee contributes to the EPF account for 5 continuous
years. The EPF amount is taxable if there is a break in the contribution to the
account for 5 continuous years. In that case, the entire EPF amount will be
considered as taxable income for that financial year.
Tax is deducted at
source on premature withdrawal of the EPF. However, if the entire amount is
less than Rs.50,000, then TDS is not applicable. Keep in mind, if an employee
provides PAN with the application, the applicable TDS rate is 10%. Otherwise,
it is 30% plus tax. Form 15H/15G is a declaration form, which states that a
person's total income is not taxable and thus, TDS is avoidable. An employee
does not have to await approval from the employer for EPF withdrawal anymore.
It can be done directly from the EPFO, provided the employee's UAN and Aadhaar
are linked, and the employer has approved it. EPF withdrawal status can be
checked online.