Benefits of paper-less EPFO
Posted on: 20/Oct/2017 4:03:00 PM
In line with the Digital India initiative by Prime Minister Narendra Modi, it is likely that the retirement body Employee Provident Fund Organization will go paperless by August next year.
With this, all the hassles of paper works at the time of job change, checking PF balance, redemption of PF, etc. will come to an end. The chances of corruption and public harassment shall also arrive to their end points.
To note, a range of online services like EPF withdrawals by EPFO are already launched.
By the next Independence Day, EPFO has targeted to make all its processes paper-free. Thus, all of its services shall be available online and on mobile handsets, said V P Joy, the Central Provident Fund Commissioner.
What are the benefits of making EPFO paper-free?
EPF involves 12 percent of the basic salary contributed by the employer as well as the employee. Of this, 12 percent of the employee’s basic pay is added to EPF kitty. Out of the 12 percent contribution by the employer, 8.33 percent goes to EPS or pension scheme and the remaining 3.67 percent goes to EPF kitty.
The interest earned out of PF accumulation does not attract any tax. Even if the EPF account is inoperative, it will continue to gain interest for more than 3 years.
With the Employees’ Deposit Linked Insurance Scheme, it is possible to obtain up to Rs 6 lakh by the survivor of deceased member.
On Diwali, EPFO had launched linking Aadhar with UAN so as to provide better and speedy EPFO services. With this, transferring PF at the time of job change gets way too easier.
Instead of Form 13, henceforth, Form 11 has to be utilized for auto transfer. December 31, 2017 is the deadline for linking Aadhar card with EPFO accounts, as per government mandate.
One can also check their PF balance by checking online on EPFO app or website. PF can also be withdrawn for needs such as house construction, house loan repayment, illness, higher studies, education, wedding, and so on.
