Administered by the Workers’ Provident Fund Organisation (EPFO) underneath the EPF Act of 1952, EPF is a retirement financial savings scheme obtainable to salaried residents.
You might have a number of EPF accounts when you’ve got modified employers and the brand new employer created a brand new one for you, or in the event you missed alerting your new employer for a switch of current account. Notably, the accounts don’t merge routinely, and you will want to request the EPFO for a web-based switch of stability to the energetic PF account.
There isn’t any penalty for a number of EPF accounts as it’s a frequent situation, and it isn’t obligatory to merge your accounts. Nevertheless, this must be finished at time of closure of account (once you retire and need to withdraw the funds or go for annuity) and it’s thus finest to finish it once you discover it.
- Make sure that your UAN is linked to your current EPF account. As soon as that is finished, you’ll have to wait three days earlier than subsequent steps could be taken.
Tips on how to merge PF accounts on-line?
You’ll be able to merge a number of EPF accounts on-line by way of the EPFO portal. This is a stepwise information how:
- You’ll obtain an OTP in your registered cell quantity which can be utilized for verification.
- One other window will open so that you can enter details about your earlier EPF accounts that you just need to merge.
- Double verify all data crammed in and choose the declaration field.
- Click on ‘Submit’.
What to do if I’ve two UANs?
You’ll be able to attain out to the EPFO through e mail uanepf@epfindia.gov.in and request for the earlier UAN to be deactivated. You’ll have to point out each outdated and present UAN within the e mail.
Additionally, you will must submit a declare with the retirement physique to retrieve funds or switch it to the present account from the earlier UAN.
- The present EPF and VPF rate of interest of 8.25% every year is larger than the general public provident fund (PPF).
- Notably, worker contributions as much as ₹1.5 lakh yearly are exempt underneath Part 80C of the outdated tax regime.
- Employers’ as much as 12% contribution (beneath ₹7.5 lakh) is exempt underneath the outdated and new tax regimes.
- There isn’t any comparable benefit at current underneath the brand new tax regime.
- Additional, for workers, curiosity on gathered contribution as much as ₹2.5 lakh is tax-free, whereas curiosity on the employer’s contribution is tax-free.
Disclaimer: This story is for instructional functions solely. The views and suggestions made above are these of particular person analysts or broking firms, and never of Mint. We advise traders to verify with licensed specialists earlier than making any funding selections.
