We’re all conscious that Finances 2021 (The Finance Invoice 2021) has launched one of many key amendments to the EPF Act. As per this modification, from 1st April 2021 onwards, the curiosity on any contribution above Rs. 2.5 lakh by an worker to a acknowledged provident fund is taxable.
Till FY 2020-21, the curiosity earnings earned on contributions to EPF made by the worker was utterly TAX-FREE.
Associated Article : For extra particulars, you might kindly undergo this text @ Curiosity on EPF Contributions above Rs 2.5 lakh is Taxable | Finances 2021
Along with the above modification, the central govt has determined to implement the beneath necessary modifications to the EPF act.
New EPF Guidelines 2021 | Newest Amendments
Beneath are the brand new EPF guidelines that EPF members want to pay attention to;
- EPFO Aadhar Verification obligatory w.e.f. 1st June, 2021. (The final date to seed the Aadhaar quantity with UAN is prolonged from June 1, 2021, to September 1, 2021, for all EPFO beneficiaries.)
- EPFO hikes loss of life insurance coverage underneath EDLI scheme to Rs 7 lakh.
- EPFO permits its subscribers to avail the second COVID-19 advance (partial EPF withdrawal)
Let’s now undergo these new EPF guidelines 2021 intimately….
EPFO Aadhar Verification obligatory w.e.f. 1st June, 2021
- The EPFO has instructed all of the Employers (Firm) that from June 1, if PF account shouldn’t be linked to Aadhaar or UAN shouldn’t be Aadhaar verified, then their ECRs (Digital Challan cum Return) is not going to be filed. The final date to seed the Aadhaar quantity with UAN is prolonged from June 1, 2021, to September 1, 2021, for all EPFO beneficiaries
- This implies, although workers can see their very own PF account contribution, they will be unable to get the employer’s share.
- Additionally, if the accounts of PF account holders usually are not linked with Aadhaar, then they will be unable to make use of the providers of EPFO.
So, hurry up, hyperlink your UAN to Aadhaar and get it verified.
EPFO hikes loss of life insurance coverage underneath EDLI scheme to Rs 7 lakh
In an one other main modification to the EPF act, the central govt has hiked the insurance coverage declare quantity underneath the EDLI scheme to Rs 7 lakh.
In a gazette notification, the Workers’ Provident Fund Organisation (EPFO) mentioned the minimal loss of life insurance coverage has been elevated to Rs 2.5 lakh and the utmost to Rs 7 lakh, from the sooner limits of Rs 2 lakh and Rs 6 lakh, respectively.
Whereas the decrease restrict of Rs 2.5 lakh is coming with retrospective impact (w.e.f. fifteenth Feb, 2020), the higher restrict has a potential impact.
The Workers’ Deposit Linked Insurance coverage Scheme (EDLI) is an insurance coverage cowl supplied by the Workers’ Provident Fund Group (EPFO). A nominee or authorized inheritor of an lively member of EPFO will get a lump sum cost of as much as Rs 6 Lakhs (now Rs 7 lakh) in case of loss of life of the member through the service interval (lively EPF member).
EPF advance (partial withdrawal declare) to fight Covid-19
EPFO permits all its members to avail second covid-19 advance (partial withdrawal).
Earlier final yr (2020), the EPFO had allowed its members to withdraw COVID-19 advance to fulfill exigencies because of the pandemic. To help its subscribers through the second wave of COVID-19 pandemic, the EPFO has now allowed its members to avail second non-refundable COVID-19 advance.
The members are allowed to withdraw three months fundamental wages (fundamental pay + dearness allowance) or as much as 75% of quantity standing to their credit score of their provident fund account, whichever is much less.
The EPFO has settled greater than 76.31 lakh COVID-19 advance claims thereby disbursing a complete of Rs 18,698.15 crore as on date. You probably have already availed the primary COVID-19 advance, now you can go for a second advance additionally.
Proceed studying :
- Vital & Complete listing of Finances 2021-22 Amendments associated to Private Finance | W.e.f AY 2022-23
- Provident Funds – Sorts & Tax Implications
- EPF Partial Withdrawals / Advances : Particulars, Guidelines & Tips
- Why do you have to Withdraw Outdated EPF Account Stability? | In-operative EPF A/c Timeline
- The right way to test if my Employer is depositing EPF quantity with EPFO / Belief?
(Put up first revealed on : 31-Might-2021)