Latest news with #UAN
Economic Times
2 days ago
- Business
- Economic Times
EPF 3.0: Withdraw PF by swiping from ATMs
Getty Images Currently, for PF withdrawals, EPF members are required to fill their online composite forms on the EPFO website. Theoretically, the money lying in our provident fund, or PF, account, is touted as our safest asset class, not subject to any attachment or lien or any market volatility. Practically, though, the very idea of taking out this money makes us fret, courtesy the cumbersome process of making claims for PF withdrawal and the associated long waiting periods for requisite approvals from the Employees Provident Fund Organisation (EPFO). However, the situation is going to change as the EPFO is rolling out its upgraded platform EPFO 3.0, most likely in June, for its 9 crore members. EPF members will be able to take out their PF money instantaneously via ATMs, just like from bank accounts, simply by swiping their PF withdrawal (ATM) cards. For such withdrawals, the members will need to keep their Universal Account Number (UAN) activated and seed their Aadhaar in their bank accounts. The EPFO has extended the last date for activating UAN and Aadhaar seeding in bank accounts to June 30. Currently, for PF withdrawals, EPF members are required to fill their online composite forms on the EPFO website. Though the specified period for settling such composite claim forms by the EPFO is 20 days, in reality, it takes much longer to get one's PF the upcoming UPI integration and withdrawal facility via ATMs, PF withdrawal settlement is set to become swift and hassle-free. The withdrawal limit is expected to be kept at Rs.1 lakh or 50% of the accumulated balance. However, an official notification from the EPFO in this regard is still awaited. Pull-out provisions Withdrawal from EFP account is permitted for multiple purposes, albeit under certain conditions and till a specified limit. Here are some common instances of taking out PF money. This well-intended reform of enabling PF withdrawals via ATMs is revolutionary indeed. However, the practical implementation of this enabling functionality will be subject to the fulfilment of existing prescribed conditions for partial and full withdrawal of PF money by members. According to the scheme of the Employees Provident Fund & Miscellaneous Provisions (EPFO) Act, 1952, EPF members can withdraw their entire balance of fund contributions at the time of retirement from service. The rules also permit partial withdrawals by EPF members during the continuity of their service, for certain specified purposes and subject to the fulfilment of prescribed conditions. For a bird's eye view of the same, refer to the watershed moment in PF reforms may have its fair share of tax implications too, with which everyone must be acquainted. Unlike bank balance withdrawals, not all EPF withdrawals via ATMs will be tax free. According to Rules 8 and 9 of Part A of the Fourth Schedule to the Income Tax Act, withdrawals are tax-free only if they are made out of recognised EPF accounts and after rendering continuous service of five or more years with one or more the current time-consuming and tedious process of submitting claims to take out money, and getting approvals, inherently acts as a disincentive or a deterrent for EPF members from making frequent and early withdrawals. Given the practical difficulties, EPF members usually prefer to wait till retirement to withdraw their the upcoming EPFO 3.0 facility for withdrawals via ATMs is naturally going to tempt EPF members to take money out of their PF account, more frequently and much before the completion of five years of continuous service. This, in turn, will make such withdrawals taxable at the applicable slab rates of the concerned EPF members, as per the provisions of the Income Tax practical consideration to be mindful of while taking out PF money from ATMs will be the applicability of tax deducted at source (TDS) provisions. Any PF withdrawal via ATMs in excess of Rs.50,000 before completion of five years of service will require TDS at 10%, as per Section 192A of the Income Tax Act on premature withdrawals. Thus, the tempting urge of withdrawing one's PF money by just a swipe of the card needs a cautious and well-informed restraint. Provident fund money is our retirement corpus, so we should swipe it carefully. The author is founder, Taxaaram India and Partner, S M Mohanka & Associates
Time of India
2 days ago
- Business
- Time of India
EPF 3.0: Withdraw PF by swiping from ATMs
Theoretically, the money lying in our provident fund, or PF, account, is touted as our safest asset class, not subject to any attachment or lien or any market volatility. Practically, though, the very idea of taking out this money makes us fret, courtesy the cumbersome process of making claims for PF withdrawal and the associated long waiting periods for requisite approvals from the Employees Provident Fund Organisation (EPFO). However, the situation is going to change as the EPFO is rolling out its upgraded platform EPFO 3.0, most likely in June, for its 9 crore members. EPF members will be able to take out their PF money instantaneously via ATMs, just like from bank accounts, simply by swiping their PF withdrawal (ATM) cards. For such withdrawals, the members will need to keep their Universal Account Number (UAN) activated and seed their Aadhaar in their bank accounts. The EPFO has extended the last date for activating UAN and Aadhaar seeding in bank accounts to June 30. Currently, for PF withdrawals, EPF members are required to fill their online composite forms on the EPFO website. Though the specified period for settling such composite claim forms by the EPFO is 20 days, in reality, it takes much longer to get one's PF money. With the upcoming UPI integration and withdrawal facility via ATMs, PF withdrawal settlement is set to become swift and hassle-free. The withdrawal limit is expected to be kept at Rs.1 lakh or 50% of the accumulated balance. However, an official notification from the EPFO in this regard is still awaited. Pull-out provisions Live Events Withdrawal from EFP account is permitted for multiple purposes, albeit under certain conditions and till a specified limit. Here are some common instances of taking out PF money. This well-intended reform of enabling PF withdrawals via ATMs is revolutionary indeed. However, the practical implementation of this enabling functionality will be subject to the fulfilment of existing prescribed conditions for partial and full withdrawal of PF money by members. According to the scheme of the Employees Provident Fund & Miscellaneous Provisions (EPFO) Act, 1952, EPF members can withdraw their entire balance of fund contributions at the time of retirement from service. The rules also permit partial withdrawals by EPF members during the continuity of their service, for certain specified purposes and subject to the fulfilment of prescribed conditions. For a bird's eye view of the same, refer to the graphic. Tax implications This watershed moment in PF reforms may have its fair share of tax implications too, with which everyone must be acquainted. Unlike bank balance withdrawals, not all EPF withdrawals via ATMs will be tax free. According to Rules 8 and 9 of Part A of the Fourth Schedule to the Income Tax Act, withdrawals are tax-free only if they are made out of recognised EPF accounts and after rendering continuous service of five or more years with one or more employers. Paradoxically, the current time-consuming and tedious process of submitting claims to take out money, and getting approvals, inherently acts as a disincentive or a deterrent for EPF members from making frequent and early withdrawals. Given the practical difficulties, EPF members usually prefer to wait till retirement to withdraw their funds. However, the upcoming EPFO 3.0 facility for withdrawals via ATMs is naturally going to tempt EPF members to take money out of their PF account, more frequently and much before the completion of five years of continuous service. This, in turn, will make such withdrawals taxable at the applicable slab rates of the concerned EPF members, as per the provisions of the Income Tax Act. TDS on early withdrawals Another practical consideration to be mindful of while taking out PF money from ATMs will be the applicability of tax deducted at source (TDS) provisions. Any PF withdrawal via ATMs in excess of Rs.50,000 before completion of five years of service will require TDS at 10%, as per Section 192A of the Income Tax Act on premature withdrawals. Thus, the tempting urge of withdrawing one's PF money by just a swipe of the card needs a cautious and well-informed restraint. Provident fund money is our retirement corpus, so we should swipe it carefully. The author is founder, Taxaaram India and Partner, S M Mohanka & Associates
Mint
4 days ago
- Business
- Mint
Deadline alert! Link aadhaar to bank account before June 30: EPFO to beneficiaries of ELI scheme
The Employees Provident Fund Organisation (EPFO) has once again extended the deadline for UAN (Universal Account Number) activation and seeding of bank accounts with aadhaar for those subscribers who want to avail the benefits under ELI scheme. 'The competent authority has granted an extension of timeline for UAN activation and aadhaar seeding in bank Account till June 30, 2025,' reads the circular. It is noteworthy to mention that these deadlines have been extended several times in the past. The first circular was issued on November 22, 2024 and the deadline was November 30, 2024. 'Since, the benefits under ELI Scheme, will be disbursed through DBT to eligible employees, Employers are urged to ensure UAN activation and AADHAAR seeding in Bank Account in respect of all their employees who have joined in the current financial year, starting with the latest joinees. The concerned EPFO offices may kindly be contacted for necessary guidance in this matter, if required,' the circular dated Nov 22, 2024 had stated. Later, the deadline of November 30 witnessed several extensions through follow up circulars which were issued on Dec 4, Dec 12, Feb 6, Feb 21 and March 3. Finally the latest circular was issued on May 30, 2025 which extended the deadline to June 30. This is Employment Linked Incentive scheme which was announced in Budget 2024-25 – and to make sure that all eligible employees can avail it, it was made mandatory to activate UAN and seed aadhaar in the bank account of each employee. The ELI scheme was launched for two sets of employees: Scheme A (first timers) and Scheme B (job creation in manufacturing). The subsidy is meant to assist employees and employers in hiring first timers. It (scheme A) is applicable to all persons newly entering the workforce (EPFO) who have less than ₹ 1 lakh per month salary. The subsidy is paid to the employees in three instalments. The directions of seeding aadhaar in bank accounts were issued in the light of directions given by the Ministry of Labour & Employment to ensure that all eligible employees can avail the Employment Linked Incentive (ELI) Scheme announced in Union Budget 2024-25. For all personal finance updates, visit here.
India Today
5 days ago
- Business
- India Today
Want ELI scheme benefits? Make sure your UAN and Aadhaar are linked by this date
The Employees' Provident Fund Organisation (EPFO) has announced an extension of the deadline for Universal Account Number (UAN) activation and Aadhaar linking with bank accounts until June 30, 2025. This extension is crucial for employees aiming to benefit from the Employment Linked Incentive (ELI) THE ELI SCHEME ALL ABOUT?The ELI scheme was announced during the Union Budget 2024–25. It's an ambitious government initiative designed to generate over two crore jobs in the country within two scheme aims to provide financial incentives to both companies and employees, encouraging businesses to hire new staff and integrate them into a formal work environment. Furthermore, it seeks to enhance the skill set of the workforce, thereby increasing the employability of the scheme includes three major programmes aimed at helping both employers and employees. It's also part of a larger package meant to provide jobs, training, and support to around 4.1 crore young people in India over the next five years. The government has set aside Rs 2 lakh crore for OF UAN ACTIVATION AND AADHAAR LINKINGActivating the UAN is essential for utilising the EPFO's online facilities, which include checking the provident fund balance, transferring funds, and downloading Aadhaar linking is required to ensure that the provident fund amount is credited directly to the employee's bank DEADLINE AND MULTIPLE EXTENSIONSadvertisementInitially, the deadline for UAN activation and Aadhaar linking was set for November 30, 2024. However, this date has been extended multiple times to accommodate employees and ensure maximum participation in the ELI decision to extend the timeline reflects the government's commitment to increasing employment opportunities and enhancing livelihoods across the nation. This extension also allows more time for employees to comply with the requirements, ensuring that no one is left EPFO 3.0 PLATFORMThe EPFO is on the verge of launching EPFO 3.0, a new platform aimed at enhancing the user experience with improved accessibility and new platform promises features akin to banking services, such as ATM PF withdrawals and faster claim processing. Additionally, the EPFO is working on upgrading its grievance mechanism, introducing a more efficient grievance portal to address member concerns swiftly. This initiative is expected to streamline operations and make the EPFO's services more user-friendly, thus facilitating better service Watch
India Today
02-06-2025
- Business
- India Today
EPFO extends UAN-Aadhaar linking deadline for ELI scheme to June 30. Check steps
If you haven't activated your UAN yet, here's some relief. The Employee Provident Fund Organisation (EPFO) has extended the last date once again for UAN activation and Aadhaar seeding with your bank account. This is important if you want to claim the benefits of the ELI THE NEW DEADLINE?As per a recent circular issued by the EPFO, the new last date to activate your UAN and link your Aadhaar-linked bank account is June 30, 2025. This deadline has already been pushed back several times, giving employees extra time to complete the extension applies to employees wishing to benefit from the Employment Linked Incentive (ELI) IS UAN, AND WHY IS IT IMPORTANT? The Universal Account Number is a 12-digit number assigned by the EPFO to each salaried employee, enabling them to manage their provident fund accounts across different employers. With your UAN, you can manage your PF money easily, no matter how many times you change activated, your UAN allows you to check your PF balance, download your passbook, file claims for withdrawal or transfer, and update personal details – all activation is crucial as it allows employees to access various online EPFO services, including managing PF accounts, submitting claims, and real-time TO ACTIVATE UANTo activate UAN, employees must use an Aadhaar-based One-Time Password (OTP). The process is simple: visit the EPFO Member Portal, click on "Activate UAN" under "Important Links," input the necessary details, and verify via Aadhaar successful activation, a password is sent to the registered mobile SCHEME BENEFITSThe Employment Linked Incentive (ELI) scheme was introduced in the Union Budget 2024 by Finance Minister Nirmala Sitharaman. Under this scheme, eligible employees can receive monetary benefits, but only if they have an active UAN and a bank account linked to are three types of ELI schemes – A, B, and C – and all of them require UAN activation and Aadhaar seeding for employees to get money. Without this, you could miss out on the financial must be pointed out that this initiative is part of the government's broader strategy to enhance transparency and efficiency in managing employee benefits through Watch
