What is EPFO? Employee Provident Fund or EPF is a popular savings scheme introduced by EPFO under the supervision of the Government of India. The savings scheme is directed towards the salaried class to facilitate their habit of saving money to create an adequate retirement fund. The EPF scheme employs over 5 crore persons and is guided by three separate Acts, namely, the Employees Provident Fund Scheme Act, 1952, the Employees Deposit Scheme Insurance Act, 1976 and the Employees Pension Scheme Act, 1995. The fund is created with expanded monetary contributions by employees and their employers each month. Both parties contribute 12% of each employee's monthly salary as a contribution to the EPF. The fund thus created earns a pre-determined rate of interest as determined by the Employees Provident Fund Organization. The interest earned on EPF is tax-free and can be withdrawn without payment. Employees avail a lump sum upon their retirement, which is included in accrued interest. Individuals can apply to avail various online services of EPF India by accessing the official portal. The EPF online portal is a user-friendly platform that ensures the flow of services to be transparent, efficient and hassle free.
What are the benefits of EPF India scheme? The Employees Provident Fund Scheme provides an array of benefits for EPF staff members. This instills in them a sense of financial stability and security. Here is a list of benefits that an EPF staff member can avail through the said scheme - Capital appreciation - The PF online scheme offers pre-determined interest on the amount deposited with EPF India. Additionally, awards given at maturity ensure an increase in employees' funds and accelerate capital appreciation. Corpus for retirement - Approximately 8.33% of the employer's contribution is directed towards the Employee Pension Scheme. In the long run, the deposits towards the Employees Provident Fund helps in creating a healthy retirement fund. Such a fund would expand financial security and a sense of independence for them after retirement. Emergency Corpus - Uncertainties are a part of life. Therefore, it is best to be financially prepared to face such unwanted situations that a person can cope with the exhibition. The EPF Fund acts as an emergency fund when a person needs emergency funds. Tax Savings - Under Section 80C of the Indian Income Tax Act, an employee's contribution to his PF account is considered eligible for tax exemption. In addition, income generated through the EPF scheme is exempt from taxes. The benefit of such exemption is Rs. Can be taken to the extent of. 1.5 lakh. The tax benefits applied to the Employees Provident Fund Scheme ensure greater income to the members. This improves long-term savings and a person's purchasing power. Easy Premature Return - Members of EPF India are entitled to avail partial withdrawal. Individuals can withdraw funds from their PF account to meet their specific needs such as pursuing higher education, building a home, meeting wedding expenses or availing medical treatment. Under what circumstances can EPF be withdrawn? Individuals can opt for partial or full withdrawal of EPF. But such withdrawals can only be made under specific circumstances. Here is a list of some circumstances under which individuals can withdraw EPF completely - Upon retirement. If their unemployment period is more than two months. While switching from one profession to another or job. But the period without job should be more than two months. Here is a list of some circumstances under which individuals can partially withdraw EPF - For a wedding. For higher education. To buy land or build a house. Home loan repayment. Renovation of a housing estate.
What is the EPF withdrawal process? EPF India members can withdraw EPF by submitting a withdrawal application offline or through the EPF online portal. For offline submission - Individuals must fill out a composite new Complete Claim Form or Form Claim Form and submit it to the EPFO office under their jurisdiction. An overall claim form must be verified by their employer. For online submission - Individuals must have an active universal account number (UAN). The mobile number used to activate the UAN must be activated. The UAN must be combined with Aadhaar. They will also require PAN and related bank details along with their IFSC code. After ensuring that all the prerequisites are in place, they have to login to the UAN online portal. Individuals are required to verify their KYC details and then proceed as per the instructions. Being a retirement-oriented scheme, the primary objective of the Employees Provident Fund is to enable individuals to be financially prepared for their retired lives. This being said, individuals should try to avoid premature withdrawal if it is not necessary.