PF account new rules 2021: Employees Provident Fund Organization (EPFO) has made a new rules for pf account holders, It’s applicable from June 1. This rule will affect the high-income earners and High Net-worth Individuals (HNI). link EPF with Aadhaar.
Huge news for Provident Fund (PF) account holders. Workers’ Provident Fund Organization (EPFO) has rolled out certain improvements in the standards for its PF account holders, which will be appropriate from June 1, 2021. Neglecting to stick to the new principles will significantly influence your EPF commitment.
EPFO has given bosses the obligation to make workers’ records Aadhaar checked. In the event that if the worker’s EPF account isn’t Aadhaar checked, it might imply that business’ commitment will not be credited into your record.
Along these lines, do guarantee to connect your PF account with Aadhaar and furthermore your Universal Account Number (UAN) should be Aadhaar checked. A notice in such manner has likewise been delivered by EPFO.
What is the PF account new rule?
EPFO has taken another choice under Section 142 of the Social Security Code 2020. The EPFO has educated the Employer (Company) that from June 1, if PF account isn’t connected to Aadhaar or UAN isn’t Aadhaar confirmed, at that point its ECR (Electronic Challan cum Return) won’t be documented.
This implies, however representatives can see their own PF account commitment, they won’t get the business’ offer.
EPFO has given a warning for every one of the Employers where it has been referenced that from June 1, 2021, assuming a part’s PF account isn’t connected with Aadhaar, ECR won’t be permitted to be recorded.
Likewise, on the off chance that the records of PF account holders are not connected with Aadhaar, they won’t utilize the administrations of EPFO.
How to link EPF with Aadhaar
Know this 5 steps for link EPF with Aadhaar,
- Step 1: Visit the official EPFO website – www.epfindia.gov.in and log in.
- Step 2: Click on Online Services – e-KYC Portal – link UAN Aadhar.
- Step 3: Upload your UAN number and mobile number registered with UAN account.
- Step 4: You will get an OTP number on your mobile number. Enter the OTP number in the OTP box, enter your 12 digit Aadhaar number and submit the form. Then click on the Proposed to OTP verification option.
- Step 5: Generate OTP on the mobile number or mail linked with your Aadhaar to verify your Aadhaar details. After verification, your Aadhaar will be linked to your PF account.
New PF Account rules from April Statements
Account serve Nirmala Sitharaman declared in Budget 2021 that interest on worker commitments to fortunate asset of over 2.5 lakh per annul would be burdened, beginning from 1 April.
Up to 2.5 lakh has been kept as far as possible for which interest is charge excluded, account serve said. In any event 12% of a representative’s essential compensation and execution compensation is mandatory deducted as opportune asset, while the business offers another 12%.
Finance Minister Statement about PF new rule
“The first-class cash which comes into the asset and gets tax break just as guaranteed about 8% returns that would go under the expense ambit,” money serve said.
“It may be noted that the new provision only takes into account employees’ contribution and not the total contribution to the fund during any year,” said Gaurav Saraf, partner, VPTP & Co.
“As paying tax exempt revenue on fortunate asset turns out to be increasingly impractical, the public authority needs to control big league salary workers from self offering more to their PF accounts,” said ‘Archit Gupta’, originator and CEO, Clear Tax.
The salaried workers who utilize Voluntary Provident Fund to contribute more than compulsory 12% of essential compensation, will likewise be affected. “A huge tax exempt revenue accumulation which isn’t burdened on withdrawal either, is presently being legitimized and will generally affect the big time salary section.