This is just an update on PF Office Interest Credit for the FY 2020-21
PF office is transferring at 8.5% interest to all the employed PF subscriber accounts for the financial year 2020-21
As PF has been considered as one of the best retiral benefits for salaried people, contract staff, etc., and also, it gives much more benefit under income-tax.
Most preferred retiral benefit
Provident Fund or PF, is one of the products, comes under the category of Exempt, Exempt, Exempt (EEE), that means, under tax-planning, it gives maximum tax exemption on the PF contribution, the interest earned on PF amount also tax-free, and the money you withdraw at the end of exit from service is also tax-free.
Take an example:
Your PF deduction under salary income is Rs. 1.5Lac/ per year.
Entire deduction of Rs. 1.5 Lac is tax-free and you can claim the tax deduction under section 80C of the Income-tax, and net tax reduction is Rs. 46350
Apart from the above; there is no tax on the interest earned on the PF account.
When you withdraw the PF fund, it’s also tax-free.
As we have noticed, before Diwali, the Employees’ Provident Fund Organization (PF Office )is transferring the interest of Provident Fund to the employees’ PF accounts of the subscribers. If you or your employees want to withdraw PF money before the festival, then this information is for you. Notably, now at the time of a Covid-19 medical emergency, PF money comes into your bank account within an hour.
Steps to withdraw the PF money in advance
Click the PF website Link: www.epfindia.gov.in, and click on Online Advance Claim
Or you click by logging in to https://unifiedportal-mem.epfindia.gov.in/memberinterface/
Use your UAN number and Password to log in to the PF portal.
Go to Online Service and click on Claim (Form-31,19,10C & 10D).
Enter and verify the last 4 digits of your bank account
Click on Proceed for Online Claim
Select PF Advance from the drop-down (Form 31)
Choose your reason. Enter the amount to be transferred and upload the scanned copy of the cheque.
Click on Get Aadhaar OTP and type OTP received on Aadhaar linked mobile.
In this way, your claim will be filed. PF claim money will come into your account in one hour.
PF office has started depositing the interest for the financial year 2020-21 in the account of PF account holders. Money has started arriving in about 6.5 Crore PF accounts of the country. In such a situation, all the account holders are checking their PF account to see how much money came into their account. It is worth noting that the PF council and ministry of finance had already given a green signal to the proposal to transfer 8.5 percent interest on PF for the financial year 2020-21. The Labor Ministry had also given its consent to this decision. Now EPFO is depositing 8.5 percent interest in the accounts of the subscribers.
How to check the PF balance and Interest?
3 ways to check whether the interest amount has been credited to your account.
Login into PF website https://passbook.epfindia.gov.in/MemberPassBook/Login.jsp
By sending SMS type ‘EPFOHO UAN ENG’ on your mobile phone and send it to 7738299899
By giving a missed call on 011-22901406
Please note the below points befor apply of PF advance
PF subscribers have to be sent the message from the registered mobile number only.
PF subscribers KYC has been updated with their Bank account, Pan number, Aadhar
Employees PF UAN number shall be activated
Employer shall have KYC approved in PF system.
PF Registration and contribution:
Getting the PF registration and extending the PF scheme to all your employees, directors of the company, is always a good social cause, and it largely benefits all the stakeholders like employees, as it helps to retain the talent, provides tax benefits, good retiral savings, and also pension and insurance benefits.
For more about how to register PF, please click here.
Team-IN PF and Payroll
Team IN Filings, Bangalore provides PF, ESI registration as per complied, we have a proper setup to process the Payroll system and other statutory compliance.
While PF is a statutory obligation from the employer, to contribute 12% along with employees’ amount of 12%, Team in equipped with a proper system to follow PF process and its management.
For further clarifications, feel free to reach [email protected] 8792858436