We’re all mindful that Price range 2021 (The Finance Invoice 2021) has offered some of the key amendments to the EPF Act. As in step with this modification, from 1st April 2021 onwards, the hobby on any contribution above Rs. 2.5 lakh by means of an worker to a known provident fund is taxable.
Till FY 2020-21, the hobby source of revenue earned on contributions to EPF made by means of the worker used to be totally TAX-FREE.
Comparable Article : For extra main points, you might kindly undergo this text @ Hobby on EPF Contributions above Rs 2.5 lakh is Taxable | Price range 2021
Along with the above modification, the central executive has made up our minds to put in force the under necessary adjustments to the EPF act.
New EPF Laws 2021 | Newest Amendments
Under are the brand new EPF regulations that EPF participants want to concentrate on;
- EPFO Aadhar Verification necessary w.e.f. 1st June, 2021. (The closing 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 beneath EDLI scheme to Rs 7 lakh.
- EPFO lets in its subscribers to avail the second one COVID-19 advance (partial EPF withdrawal)
Let’s now undergo those new EPF regulations 2021 intimately….
EPFO Aadhar Verification necessary w.e.f. 1st June, 2021
- The EPFO has prompt the entire Employers (Corporate) that from June 1, if PF account isn’t connected to Aadhaar or UAN isn’t Aadhaar verified, then their ECRs (Digital Challan cum Go back) is probably not filed. The closing 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 staff can see their very own PF account contribution, they won’t be able to get the employer’s percentage.
- Additionally, if the accounts of PF account holders aren’t connected with Aadhaar, then they won’t be able to make use of the services and products of EPFO.
So, hurry up, hyperlink your UAN to Aadhaar and get it verified.
EPFO hikes demise insurance coverage beneath EDLI scheme to Rs 7 lakh
In an every other primary modification to the EPF act, the central executive has hiked the insurance coverage declare quantity beneath the EDLI scheme to Rs 7 lakh.
In a gazette notification, the Staff’ Provident Fund Organisation (EPFO) stated the minimal demise insurance coverage has been higher 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.
Whilst 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 Staff’ Deposit Related Insurance coverage Scheme (EDLI) is an insurance coverage quilt supplied by means of the Staff’ Provident Fund Group (EPFO). A nominee or criminal inheritor of an lively member of EPFO will get a lump sum fee of as much as Rs 6 Lakhs (now Rs 7 lakh) in case of demise of the member all over the carrier duration (lively EPF member).
EPF advance (partial withdrawal declare) to fight Covid-19
EPFO lets in all its participants to avail 2nd covid-19 advance (partial withdrawal).
Previous closing 12 months (2020), the EPFO had allowed its participants to withdraw COVID-19 advance to fulfill exigencies because of the pandemic. To strengthen its subscribers all over the second one wave of COVID-19 pandemic, the EPFO has now allowed its participants to avail 2nd non-refundable COVID-19 advance.
The participants are allowed to withdraw 3 months elementary wages (elementary pay + dearness allowance) or as much as 75% of quantity status 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’ve got already availed the primary COVID-19 advance, you’ll now go for a 2nd advance additionally.
Proceed studying :
- Vital & Complete record of Price range 2021-22 Amendments associated with Non-public Finance | W.e.f AY 2022-23
- Provident Price range – Sorts & Tax Implications
- EPF Partial Withdrawals / Advances : Main points, Laws & Pointers
- Why will have to you Withdraw Outdated EPF Account Stability? | In-operative EPF A/c Timeline
- Find out how to take a look at if my Employer is depositing EPF quantity with EPFO / Agree with?
(Publish first printed on : 31-Might-2021)