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New EPF Guidelines 2021 | Newest Amendments to EPF Act

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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 revenue earned on contributions to EPF made by the worker was fully TAX-FREE.

EPF-Contributions-above-Rs-2.5-lakh-vpf-epf-interest-taxable-provident-fund-budget-2021-pic
EPF Contributions above Rs 2.5 lakh, Curiosity is taxable | Finances 2021

Associated Article : For extra particulars, chances are you’ll 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 vital modifications to the EPF act.

New EPF Guidelines 2021 | Newest Amendments

Under are the brand new EPF guidelines that EPF members want to concentrate on;

  • 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 demise insurance coverage below 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 just isn’t linked to Aadhaar or UAN just isn’t 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 demise insurance coverage below EDLI scheme to Rs 7 lakh

Components-of-your-EPF-Account-benefits-EPF-EPS-EDLI-Scheme
Parts of EPF account & Advantages – EPF, EPS & EDLI

In an one other main modification to the EPF act, the central govt has hiked the insurance coverage declare quantity below the EDLI scheme to Rs 7 lakh.

In a gazette notification, the Workers’ Provident Fund Organisation (EPFO) mentioned the minimal demise 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.

EPF account EDLI maximum insurance amount increased to Rs 7 lakh 2021
EPF account EDLI most insurance coverage quantity hiked | Newest Round | New EPF Guidelines 2021

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 offered 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 demise of the member in the course of the service interval (lively EPF member).

Associated Article : Find out how to make EPF Demise Declare by Nominee of a Subscriber? | EPF/EPS/EDLI Scheme Advantages

EPF advance (partial withdrawal declare) to fight Covid-19

New EPF Rules 2021 EPF advance EPF partial withdrawal claim for covid corona treatment emergency
EPF Partial withdrawal for Covid-19 remedy

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 satisfy exigencies because of the pandemic. To assist its subscribers in the course of 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 primary wages (primary 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. When you have already availed the primary COVID-19 advance, now you can go for a second advance additionally.

Proceed studying :

  1. Vital & Complete checklist of Finances 2021-22 Amendments associated to Private Finance | W.e.f AY 2022-23
  2. Provident Funds – Varieties & Tax Implications
  3. EPF Partial Withdrawals / Advances : Particulars, Guidelines & Tips
  4. Why must you Withdraw Outdated EPF Account Stability? | In-operative EPF A/c Timeline
  5. Find out how to test if my Employer is depositing EPF quantity with EPFO / Belief?

(Submit first revealed on : 31-Might-2021)



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