The move taken by the EPFO comes in the wake of changes in the wage structure in accordance with the proposal of the 7th Pay Commission.
EPF Form 11 – New Declaration Form replaces existing Form No: 11 and also replace Form No.13 in all such cases where existing member to the Provident Fund makes a request for transfer of his fund availing the facility of UAN
According to the official, the impending strike on September 2 was stopping the government from making any announcement over Increasing Proportion of the EPF to be Invested in the Stock Market, hence it wants to consult the trade unions unions before taking the decision.
Central trade union leaders on Tuesday walked out from the Employees’ Provident Fund Organisation (EPF) central board of trustees meeting protesting a Finance Ministry notification allowing unclaimed PF money to be diverted towards a Senior Citizens’ Welfare Fund.
Finance minister Arun Jaitley in his Budget speech last year had proposed the creation of Senior Citizens Welfare Fund saying, “there are unclaimed deposits of about Rs 3,000 crore in the PPF, and approximately Rs 6,000 crore in the EPF corpus
Conceding that there was an “understanding gap” on the EPF rate within the government, Union Labour and Employment Minister Bandaru Dattatreya said that there were two reasons behind the Finance Ministry’s push for lowering the EPF rate.
CITU press release on the recent amendments in EPFO and postponement of implementation
The move to cut interest rates on EPF deposits evoked strong reactions from central trade unions. While the BMS held demonstrations at 46 EPF offices across the country on Wednesday, other trade unions will hold similar protests on Friday.
80% of the claims settled by EPFO belonged to pre-mature withdrawal of funds, treating the EPF accounts as savings accounts, and not a Social Security instrument
On Feb 10, 2016, the ministry of labour and employment made sweeping changes in the EPF rules restricting the withdrawal of EPF corpus. EPFO rules restricting withdrawal of employees’ provident fund will come into force after April 30.
Those who raised their pitch against the EPF tax proposal are claiming victory. But the withdrawal should not bury a more fundamental and longterm concern: Do we Indians plan well for life after superannuation?
EPF interest rate for previous year was fixed at 8.75%. For the year 2015-16, interest for contribution made by employer and as well as Employee will 8.8%.
Secretary, National Council (Staff Side) has made a request to defer Income Tax on withdrawal of PF 60%
National Pension System is presently subjected to income tax on EET (Exempt Exempt Tax) Basis. Whereas Provident Funds such as PPF, EPF etc and Superannuation Funds are fully exempted from Income Tax on EEE basis (Exempt, Exempt, Exempt). Changes made in Income Tax Provisions in the Budget 2016 has sought to rationalize all these Provident Funds and Pension Funds as far as treatment of income tax in respect of these schemes are concerned
Based on Budget Speech in parliament the change in taxation with regard to EPF was interpreted to the effect that 60% of Employee subscription in EPF and PPF would be subjected to income tax