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New Provident Fund (PF) Withdrawal Rules 2023

PF, or Provident Fund, is a contribution-based savings scheme where both the employee and the employer contribute to create a monetary fund to cater to post-retirement necessities. The corpus created can be accessed or withdrawn by the employee subject to certain Provident Fund withdrawal rules.

The Employee Provident Fund in India is administered by a statutory body, Employees’ Provident Fund Organisation, offering a financial backup for Indian residents employed in the organised sector.

Reasons	Eligibility	Withdrawal Limit
Housing Loan for construction or addition of house/purchase of site/flat	Minimum 60 months of service	Up to to 36 months of his/her basic along with DA/ the total of employee and employer shares with interest/ the total cost of the house
Marriage of self/son/daughter/brother/sister or for post matriculation education of children	Minimum 84 months of service	Up to 50% from the EPF account
One year before retirement	Should be above 54 years of age	Up to 90% of his/her EPF amount
Medical expenses/Natural Calamity/purchase of equipment by physically handicapped/closure of factory/cut in electricity in establishment	No minimum service tenure	Up to 6 months of his/her basic and DA/ the entire contribution

New EPF Withdrawal Rules 2023

The EPF account consists of contributions from the employer and employee. However, the money in an EPF account cannot be withdrawn on a whim.

Here are ten important rules about EPF withdrawal:

Money from the EPF account cannot be withdrawn during employment, unlike a bank account. EPF is a long-term retirement savings scheme. The money can be withdrawn only after retirement.
Partial withdrawal from EPF accounts is permitted in the case of an emergency such as medical emergency, house purchase or construction, and higher education. Partial withdrawal is subject to limits depending on the reason. The account holder can request online for partial withdrawal.
Although the EPF corpus can be withdrawn only after retirement, early retirement is not considered until the person reaches 55 years of age. EPFO allows withdrawal of 90% of the EPF corpus 1 year before retirement, provided the person is not less than 54 years old.
The EPF corpus can be withdrawn if a person faces unemployment before retirement due to lock-down or retrenchment.
The EPF subscriber has to declare unemployment in order to withdraw the EPF amount.
As per the new rule, EPFO allows withdrawal of 75% of the EPF corpus after 1 month of unemployment. The remaining 25% can be transferred to a new EPF account after gaining new employment.
As per the old rule, 100% EPF withdrawal is allowed after 2 months of unemployment.
EPF corpus withdrawal is exempted from tax but under certain conditions. Tax exemption on EPF corpus is permitted only if an employee contributes to the EPF account for 5 continuous years. The EPF amount is taxable if there is a break in the contribution to the account for 5 continuous years. In that case, the entire EPF amount will be considered as taxable income for that financial year.
Tax is deducted at source on premature withdrawal of the EPF corpus. However, if the entire amount is less than Rs.50,000, then TDS is not applicable. Keep in mind, if an employee provides PAN with the application, the applicable TDS rate is 10%. Otherwise, it is 30% plus tax. Form 15H/15G is a declaration form, which states that a person’s total income is not taxable and thus, TDS is avoidable.
An employee does not have to await approval from the employer for EPF withdrawal anymore. It can be done directly from the EPFO, provided the employee’s UAN and Aadhaar are linked, and the employer has approved it. EPF withdrawal status can be checked online.

Steps for EPF Withdrawal Online

Employees can make a PF withdrawal claim on the EPFO member portal by following the steps mentioned below. As already mentioned, if the employee has seeded his/her Aadhaar card details with one’s UAN account, they do not require the attestation of their employer to make a PF withdrawal.

Step 1: Visit the EPFO member portal.

Step 2: Choose the ‘For Employees’ option under the ‘Our Services’ tab.

Step 3: On the new webpage click on the ‘Member UAN/Online Service (OCS/OTCP)’ option under the ‘Services’ tab of the ‘For Employees’ page.

Step 4: This will redirect you to a new webpage. Log in to the portal using your UAN, password, and the Captcha code.

Step 5: Click on the ‘KYC’ option under the ‘Manage’ tab.

Step 6: You will be redirected to a new webpage. Scroll down to the bottom of the page to find the ‘Digitally Approved KYC’ section and check your KYC details. Ensure the details are correct.

Step 7: Click on the ‘Online Service’ tab from the top menu to proceed with the withdrawal if all the KYC details are correct.

Step 8: Click on the ‘CLAIM (FORM-31, 19 & 10C)’ option from the drop-down menu.

Step 9: You will be redirected to a new webpage with an automatically generated ‘ONLINE CLAIM (FORM 31, 19 & 10C)’ form.

Step 10: You will be required to enter the Last 4 digits of your registered bank account number and verify the same.

Step 11: After the verification of the bank account, a ‘Certificate of Undertaking’ will be generated. Click ‘Yes’ on the certificate pop-up to proceed.

Step 12: Click on the ‘Proceed for Online Claim’ option when prompted.

Step 13: For online fund withdrawal, select the ‘PF ADVANCE (FORM – 31)’ option from the drop-down menu provided next to the ‘I want to apply for’ option.

Step 14: A reason for a claim has to be selected from the drop-down options provided next to the ‘Purpose for which advance is required’ option. The fields provided for the address of the employee and the amount for an advance are also required to be filled in.

Step 15: Click on the checkbox at the end of the page and submit your withdrawal application.

Step 16: You might be required to upload certain scanned documents (depending on the nature of the withdrawal).

Step 17: Once the employer approves the withdrawal request, the withdrawal amount will be withdrawn from the EPF account and will be deposited to the respective bank account. Once the claim has been settled, you will receive an SMS notification on your registered mobile number.

Steps to Enter Exit Date and Withdraw Your PF Easily

If the withdrawal of your Provident Fund (PF) is delayed, then it may happen due to the exit date not being mentioned. Hence, in order to avoid this, The Employees’ Provident Fund Organisation (EPFO) has come up with a facility in the Unified Portal where the employee can enter the date of exit from the previous employer by himself. Previously, only the employer could enter the exit date, but now even employees can enter the date of exit.

You can change the exit date by logging in to the UAN portal using your Unified Account Number (UAN) and password. However, you must check whether the exit date is mentioned by clicking on ‘Service History‘ under ‘View‘ on the top panel.

Given below are the steps you will have to follow in order to enter the Exit Date:

Step 1: Log in to your UAN portal using your Unified Account Number and Password

Step 2: On the top panel, click on ‘Manage’ and click on ‘Mark Exit’ located under it

Step 3: From the drop-down option choose the employer

Step 4: You will be directed to a new page where you will have to enter your date of birth, date of joining, and date of exit. Mention the date of exit as the one mentioned in your resignation letter if your exit date is before the 15th day of the month

register a Grievance?

Step 1: You will have to go to the EPFO Grievance Management System and click on ‘Register Grievance‘.

Step 2: You will then see a grievance registration form. Here, you will have to fill all the required fields accurately.

Step 3: You will need to choose your status from the drop-down option.

Step 4: Next, you will have to key in your PF number, your establishment, the address of establishment, the name of the complainant, contact details, grievance details, etc. You can then enter the captcha code and click ‘Submit‘.

Types of EPFO Grievances

You can register a grievance when you face issues associated with:

Return of cheque or misplacement of cheque
Scheme certificate (10C)
Transfer of your PF accumulations (F-13)
Settlement of your pension (10-D)
Provision of PF balance or PF slip
Others

Criteria for PF Withdrawal

1. When an employee is still under service

If he/she wishes to take an advance from the PF account, the composite claim form (Aadhaar/Non-Aadhaar) has to be submitted.
If he/she wishes to finance his/her LIC policy through the PF account, Form 14 has to be submitted.
If he/she has crossed 58 years of age and wishes to claim the pension fund.
Form 10D should be applied for a monthly pension if 10 years of eligible service has been completed.
The composite claim form (Aadhaar/Non-Aadhaar) should be submitted if 10 years of eligible service has not been completed.

2. When an employee switches the job

And wishes to transfer EPF account, Form 13 should be applied
When an employee leaves an establishment and doesn’t join another
He/she can make a PF and pension fund claim using the composite claim form (Aadhar/Non-Aadhar)
Is above the age of 58 years, and has completed 10 years of eligible service, he/she can make a PF claim using the composite claim form (Aadhaar/Non-Aadhaar) and a pension claim using Form 10D

3. When an employee leaves an establishment due to a physical disability

He/she can make a PF claim using a composite claim form (Aadhaar/Non-Aadhaar).
He/she can make a pension claim using Form 10D.
Is above the age of 58 years and has not completed 10 years of eligible service, he/she can make the PF and pension claim using the composite claim form (Aadhaar/Non-Aadhaar).

4. When an employee is deceased while in service

Before the age of 58 years while still in service, the nominee/heir/beneficiary can apply for the PF settlement using Form 20, monthly pension using Form 10D, and EDLI (Employees’ Deposit Linked Insurance) amount using Form 5IF.
After the age of 58 years and having completed 10 years of eligible service, the nominee/heir/beneficiary can claim the PF using Form 20, the pension using Form 10D, and the EDLI amount using Form 5IF.
After the age of 58 years and had not completed 10 years of eligible service, the nominee/heir/beneficiary can make the PF settlement using Form 20, withdraw the pension using the composite claim form (Aadhaar/Non-Aadhaar), and claim the EDLI amount using Form 5IF.

5. When an employee is deceased

Before the age of 58 years, the nominee/heir/beneficiary may claim the PF amount through Form 20, and the pension amount through Form 10D.
After the age of 58 years and having completed 10 years of eligible service, the nominee/heir/beneficiary can claim the PF amount using Form 20, and the pension amount using Form 10D.
After the age of 58 years and had not completed 10 years of eligible service at the age of 58 years, the nominee, heir or beneficiary can apply for a final PF settlement using Form 20 and for the pension fund using the composite claim form (Aadhaar/Non-Aadhaar).

Reasons for PF Withdrawal

The situations under which you can go ahead and withdraw money from your EPF while you are still working

Medical Treatment
Marriage purposes
Construction of house or purchase of property
Repaying the existing home loan
Education purposes
Alterations or repairs for your house

1. Medical Treatment

IYou can withdraw money from your EPF account to meet the financial requirements of a medical treatment, provided it meets the following conditions:

Any major surgery in a particular hospital
The hospitalisation period is more than a month
The individual is suffering from Tuberculosis, Leprosy, Cancer, Mental Derangement, Paralysis, heart problems, etc. and is on leave that has been granted by the employer for the mentioned illness

You can actually withdraw the money in EPF at any given time during the period of your service. It is not needed that you to have completed a specific number of years in the organisation to claim that money. You can always draw the money for treatment purposes, even if you have completed one or two years in your present organisation.

You must also remember that the maximum amount that can be availed by you is your six months’ salary. This amount may not be very big, but it will offer you some help that you might need in a crisis situation. Not only can this advantage be taken anytime, but also, it can be enjoyed as many times as you want. Thus, your PF will save you for sure.

Certain documents must be provided by you along with Form 31

Your employer must give a certificate stating the insurance scheme offered by him and the benefits that are not available for the member. If not, then the member must provide a certificate issued by Employees’ State Insurance Corporation that would state that fact that the member can no longer avail the cash benefits provided by the Employees’ Insurance Scheme
The doctor must certify that hospitalisation for a period of one month is required in this case. Also, if there is a requirement for surgery, that must also be stated by the doctor in that certificate

2. Marriage Purposes

Money from your EPF can be withdrawn for an occasion like marriage in case you have already completed seven years of your service life. You can use up to 50 % of the amount that is there in your EPF account, and you can enjoy this advantage for a maximum of three times. So, let us consider that you have around INR 5 lacs in your EPF account. However, you must not calculate the entire amount when you wish to withdraw it for your marriage purposes. Just your own contribution towards EPF along with the interest accumulated on it is supposed to be calculated by you. Applicable cases are as follows.

Your own wedding
Wedding of your child
Wedding of your sibling

3. Construction of house or purchase of property

You can withdraw some money from the EPF when you are planning to purchase a house or construct a house. However, you must understand a few rules first.

The land or house that you wish to purchase must be on your name, your spouse’s name or jointly in both your names. Any other combination will not be allowed
You must have completed a period of 5 years in your service
The maximum amount that you can avail from your EPF account is 24 times your monthly salary

If the property that you intend to purchase is in question, then it should first become free from all related disputes. The property must be a registered one and proof of registration must also be provided.

4. Repaying the existing home loan

If you have taken a home loan and wish to prepay it, then you may withdraw some amount from your EPF. But to avail this benefit you must have completed ten years of your service. However, you can only avail this advantage once in your entire lifetime. Also, you can either use the EPF for purchasing a house or property or for repayment of your present home loan. You cannot avail money for both of them.

The property for which you are making the payment must be in your name, your spouse’s name or jointly held by both of you. Many people have joint home loans with their siblings or parents. In such cases, you will not be able to avail this particular benefit. An amount equivalent to 36 times your monthly salary can be availed from the EPF for the repayment of the existing home loan.

5. Education purposes

Some money from your EPF can be withdrawn for educational purposes. This advantage can be availed only for post matriculation educational expenditures. This means, if you admit your daughter or son to any university or college then you will be able to draw money from the EPF account. You must complete seven years of your service before you can avail this benefit.

6. Alteration or Repairs of your house

After several years of staying in a house, you might think that it needs some repairs. Some alterations can also be an option that will make things convenient for you. But this is a costly affair and could very well burn a hole in your pocket. You can avail some money from the EPF for this purpose. But first you need to know some rules.

You can withdraw and enjoy a maximum of 12 times your monthly salary
From the date of construction, the house that you wish to repair must be at least five years old
You must have completed a period of ten years in your service life
This particular facility can be availed only once in an entire lifetime
The house that you wish you repair must be under your name, your spouse’s name or jointly under both of your names

Other reasons for Withdrawing Money from EPF

If the member has reached the age of retirement.
If they have been unemployed for a duration of more than 60 days or two months.
If they wish to move permanently abroad.
If a female employee is resigning due to reasons such as pregnancy, childbirth, getting married, etc.

Limits of EPF Partial Withdrawal

Employees can make withdrawals based on the below-listed circumstances. Listed below are the withdrawal purpose, the minimum service requirement to be eligible to make the withdrawal, the PF withdrawal limit and the relations for whom the employee can make the withdrawal.

PF withdrawal reason	Minimum service	PF Withdrawal Limit	Relations
House Construction or purchase of plot	5 years	24 times the monthly salary for purchasing/36 times the monthly salary for purchase and construction, or the cost of the property or the total of employee and employer’s shares with the interest amount, whichever is less	The PF account holder and spouse or joint
Home Loan Repayment	3 years	90% of PF the balance	The PF account holder and spouse or joint
House renovation or alteration	5 years from the completion of the construction of a house	12 times the monthly salary	The PF account holder and spouse or joint
Marriage	7 years	50% of the employee’s contribution with interest	The PF account holder, siblings, and children
Medical treatment	Not required	Employee’s share with interest or 6 times the monthly salary, whichever is lower	The PF account holder, parents, spouse, or children

EPF Interest Rate 2023, Withdrawal, Login, Passbook

Current EPF Interest Rate 2022-23

The current EPF interest rate for FY 2022-23 is 8.15%. The following table will give you get an idea of the diversity or stability of EPF interest rates over the years:

Financial Year	Annual Interest Rate (%)
2022-23	8.15%
2021-22	8.10%
2020-21	8.50%
2019-20	8.50%
2018-19	8.65%
2017-18	8.55%
2016-17	8.65%
2015-16	8.80%
2014-15	8.75%
2013-14	8.75%
2012-13	8.50%
2011-12	8.25%
2010-11	9.50%
2005-10	8.50%
2004-05	9.50%
2001-04	9.50%
2000-01	12% (April-June), 11% from July 2001

The interest rate on EPF is reviewed annually. EPF interest rate for FY 2022-23 is 8.15%. Once EPFO notifies the interest rate for a financial year and the year ends, interest rate is calculated for the month-wise closing balance and then for the entire year.

The year in which the new interest rates are announced stays valid for the next financial year i.e. from the year starting on 1st April of one year to the year ending on 31st March of the next year. Here are a few important facts to know about EPF Interest Rate:

The rate of interest i.e. 8.15% is valid and will be applicable only on EPF deposits made between the months of April 2022 and March 2023.
The interest, even though calculated on a monthly basis, is transferred to the Employees’ Provident Fund account only on a yearly basis on 31st March of the applicable financial year.
The transferred interest is summed up with the next month i.e. April’s balance and is then again used for calculation of the interest.
If the contribution is not made into an EPF account for thirty-six months continuously, the account becomes dormant or inoperative.
Interest is offered on inoperative accounts of employees who have not attained the retirement age.
Interest is not provided on the amount deposited in inoperative accounts of retired employees.
The interest earned on inoperative accounts is taxable as per the member’s slab rate.
For contributions made towards the Employees’ Pension Scheme by the employer, the employee shall not receive any interest. However, a pension is paid out of this amount after the age of 58.

EPF Interest Rate Calculation

Contribution Start Month	April 2022
Interest Rate (p.a)	8.15%
Monthly Interest Rate	8.15/12 = 0.679%
Employee’s Contribution	12% of Rs. 15,000 = Rs. 1,800
Employer’s Contribution	Rs. 1,800 (8.33% in Pension, 3.67% in EPF)
Employer’s Actual Contribution to EPF account	3.67% of Rs. 15,000 = Rs. 550
Total Monthly Contribution in EPF account	Rs. 1800 + Rs. 550 = Rs. 2,350

The balance calculation for the next month (May) will be done in the given manner:

Balance carried forward from April 2022= Rs. 2,350
Interest earned for the month of April 2022 = Rs. 15.95
Balance at the end of May 2022 = Rs. 2,350 + Rs. 2,350 = Rs. 4,700

Note: Although interest has been earned in April 2022, it will be credited at the end of the financial year on 31st March 2023.

The employer and employee make equal contributions to the EPF account as shown below.

Contribution by	Monthly Percentage Contributed
Employer	12%
Employee	12% or 10%
Total	24%

Key Points about EPF Contribution:

12% Employer’s contribution includes 3.67% EPF and 8.33% EPS
10% EPF share is valid for the organizations where there are 20 or less than 20 employees /organizations with losses incurred more than or equal to the net worth (at the end of financial year) /organizations declared sick by the Board for Industrial and Financial Reconstruction
Total contribution made by the employer is distributed as 8.33% towards Employees’ Pension Scheme and 3.67% towards Employees’ Provident Fund.
All contributions are updated in the EPF member passbook
The contribution made by the employee goes totally towards the provident fund of the employee.
Apart from the above-made contributions, an additional 0.5% towards EDLI has to be paid by the employer.
Certain administration costs towards EDLI and EPF standing at the rate of 1.1% and 0.01% respectively also have to be incurred by the employer. This means that the employer has to contribute a total of 13.61% of the salary towards this scheme.

Employee’s Contribution towards EPF

In general, the contribution rate for the employee is fixed at 12%. However, the rate is fixed at 10% for the below-mentioned organizations:

Organizations or firms employing a maximum of 19 workers
Industries declared as sick industries by the BIFR
Organizations suffering an annual loss much more as compared to their net value
Coir, guar gum, beedi, brick and jute industries
Organizations operating under the wage limit of Rs. 6,500

The minimum amount of contribution to be made by the employer is set at a rate of 12% of Rs. 15,000 (although they can voluntarily contribute more). This amount equals Rs. 1,800 per month. It means that both the employer as well as the employee has to contribute Rs. 1,800 each per month towards this scheme. Initially, this amount was set at 12% of Rs. 6,500, which would equal Rs. 780 to be contributed by both the employer and the employee.

The contribution from both the parties is deposited into the EPFO (Employees’ Provident Fund Organisation)
This is a long-term investment fund for the contributors which helps them continue an independent life after retirement

Follow the process given below for EPF registration:

Visit the Employees’ Provident Fund Organisation (EPFO) website
Go to the section of ‘Establishment Registration’ that opens up a new page with ‘Instruction Manual’. It will explain the process of Employer Registration, followed by registration of DSC [Digital Signature Certificate] of the Employer which is a prerequisite for fresh application submission.
Accept ‘I have read the instruction manual’ tickbox to proceed and fill in the details to register.
An email e-link is sent which is to be activated and a mobile PIN is also sent. You need to upload certain documents to register.
Those who are already registered can log in using their Universal Account Number (UAN).

EPF UAN Activation Online

To avail facilities of EPF online, one has to activate UAN through the EPF member login portal. In order to activate your UAN, follow the steps given below:

Step 1: Visit the member website of EPF i.e. EPF e-SEWA/EPF Members Portal

Step 2: Click on the “Activate UAN” option present in the right corner of the page

Step 3: As the EPF member home dashboard opens up, enter your UAN/member ID along with your Aadhaar number, name, date of birth, and mobile number according to EPFO records

Step 4: Enter the captcha code and get an authorization PIN on your mobile number registered with EPFO

Step 5: Use the One Time Password (OTP) to validate and activate the UAN online

Step 6: Another message will be sent to confirm the activation of the UAN

Step 7: Once UAN is activated, you can log in using it to check the status of the Provident Fund

Steps to Update EPF KYC Online

Step 1: Visit EPF Members Portal and log in using UAN & Password

Step 2: As the new page opens up, under the section of ‘Manage’, click on KYC from the dropdown menu

Step 3: Update the details like name and number of PAN, Aadhar, Bank documents, etc.

Step 4: Save it and it will show as Pending KYC as long as it is verified from the other end

Employee Provident Fund (EPF): What are the new tax rules

“Employee Provident Fund (EPF) is India’s most popular retirement financial planning and investment choice for individual taxpayers. EPF was earlier under the Exempt taxation framework, i.e., EPF was tax-free at:

Investment stage: When a contribution was made, one could claim a deduction under section 80C against the employee’s contribution upto INR 1.5 lakhs and the entire employer’s contribution upto 12% of PF salary was exempt without any ceiling

Accrual stage: When interest is declared on the accumulated balance

Maturity stage: When the amount is withdrawn from the fund subject to meeting exemption criteria

The Indian Government in order to promote the National Pension Scheme and tax High Net-worth Individuals has done away with a few of the above tax benefits by making the following changes according to Preeti Sharma.

Tax rule on EPF contributions

Employee’s contribution to the EPF account is allowed as a deduction under Section 80C but within the overall limit of INR 1.5 lakhs. There is no change in this provision.

Employer’s contribution to the EPF account of an employee is exempt upto 12% of the PF Salary. Effective 1 April 2020, any employer’s contribution to Provident Fund (PF), NPS and superannuation exceeding INR 7.5 lakhs per year is taxable as perquisites in the hands of the employee under the head ‘Income from Salary’.

EPF tax rule on accrual of interest

Effective 1 April 2022, any interest on an employee’s contribution to EPF upto INR 2.5 lakhs per year is tax-free and any interest earned on a contribution over and above INR 2.5 lakhs is taxable in the hands of the employees. The threshold of INR 2.5 lakhs is increased to INR 5 lakhs in case the employer is not contributing towards EPF.

As per the notification issued by the Income Tax department dated 31 August 2021, the Regional Provident Fund Commissioner (RPFC) will maintain the EPF balance of individuals in two separate accounts for taxation purposes. The contribution within the limit of INR 2.5lakhs/5lakhs in one account and the excess contribution along with the interest accrued on it shall be maintained in a separate taxable account. The RPFC shall deduct TDS on such interest paid on the account maintaining taxable contribution.

Further, in addition to the contribution made by the employer in excess of INR 7.5lakhs per year that is taxable as perquisites in the hands of employees, any interest, dividends, etc. earned from such excess contribution will be taxed as well in the hands of the employee.

Rule 3B has been introduced by the Income Tax department to ascertain how interest, dividend, etc. will be calculated on the above contribution. Employers also need to withhold tax on such accruals.

Further, employers also need to provide the details of such accruals and taxes withheld in Form 16 and Form 12BA issued to employees.

Tax rule on withdrawals of EPF

No tax is required to be paid on the contribution amount and accumulated interest in case the accumulated balance in EPF is withdrawn after 5 years of continuous service.

However, in case the accumulated balance is withdrawn prior to the completion of 5 years of continuous service (allowed by the RPFC in case of prescribed circumstances), then the balance and interest won’t be fully exempted from tax. The tax on such withdrawal shall be calculated as follows:

a) Employer’s Contribution and Corresponding Interest

Employer’s contribution and interest on the same is fully taxable in the hands of the employee under the head ‘Income from salary’ in the individual’s Income Tax return.

b) Employee’s Contribution

In cases where deduction under Section 80C is claimed at the time of contributing, the amount of the employee’s contribution shall become taxable as ‘Income from Salary’. In other cases, the amount withdrawn from an employee’s contribution may not be taxable.

c) Interest on Employee’s Contribution

The amount of interest earned on the employee’s contribution to EPF shall be taxable in the hands of the employee as ‘Income from Other Sources’.

The RPFC shall deduct TDS at 10% on the total amount withdrawn (if more than INR 50,000) before the completion of 5 years of continuous service.

Impact and budget expectations

Despite the above changes, EPF still remains the most loved and sought-after retirement planning scheme for the majority of individual taxpayers. The above changes may not affect individuals who are earning a basic salary upto INR 20 lakhs and contributing 12% of their basic salary towards EPF. Most individuals in India fall under this category.

Information Booklet for the employers of the newly covered establishments, go to this link

Employer
_Information_BookletDownload

Know about rules, and claim forms for the final settlement of PF account after leaving job

Employees Provident Fund Organisation (EPFO) website suggests accountholders to wait for some time to get a new job and transfer their PF money to a new account with the new employer. In case you fail to get a new job, you should apply for withdrawal before the end of the 36-month period from leaving the last job as no interest will be paid after 36 months and the account will become inoperative.

“You can also wait for some time to get a new job and then you can get your PF Account transferred to the new Account. However, in case of not getting the job, apply for the settlement before 36 months from leaving the last job as no interest will be paid after 36 months and the account will become inoperative,” the EPFO says on its website.

Claim forms for final settlement of PF account

Age below 50 years

In case 10 years of eligible service is completed then you can apply (in certain cases after a waiting period of 2 months) for final settlement of PF and Scheme Certificate from Pension Fund through Composite Claim For (Aadhar) and Composite Claim Form (Non-Aadhar). The EPFO says that withdrawal benefit, in this case, is not permitted since you have more than 10 years of eligible service. Only the scheme certificate will be issued.

In case you have not completed 10 years of eligible service as on the date of leaving: You can apply (in certain cases after a waiting period of 2 months) for final settlement of PF and Withdrawal Benefit/ Scheme Certificate from Pension Fund through Composite Claim For (Aadhar) and Composite Claim Form (Non-Aadhar).

The EPFO says, “You can apply for Withdrawal Benefit or Scheme Certificate through Form 10C for retaining the Pension Fund Membership. Retention of the membership will give advantage of adding any future period of membership under the Fund and attain eligible service of 10 years to get pension. The Family Pension Benefits will also be admissible in case of death of member if before 58 years of age even with less than 10 years of eligible service.”

Age above 50 years but below 58 years

If 10 years of eligible service is completed then you can apply for final settlement and scheme certificate from pension Fund through Composite Claim For (Aadhar) and Composite Claim Form (Non-Aadhar) or Reduced Pension through Form 10D.

EPFO also says that withdrawal benefit, in this case, will not be permitted as you have more than 10 Years of eligible service. Only Scheme Certificate will be issued. Also, if you opt for pension, then the same will be paid at a reduced rate from the date of leaving service or opted date or 50 years age, whichever is later.

“The pension will be calculated as admissible on completion of 58 years and will be reduced by 4% for each year backward,” it says.

If 10 years of eligible service is not completed then you can apply for final settlement and withdrawal benefit/scheme certificate from Pension Fund through Composite Claim For (Aadhar) and Composite Claim Form (Non-Aadhar).

“You can apply for Withdrawal Benefit or Scheme Certificate through Form 10C for retaining the Pension Fund Membership. Retention of the membership will give advantage of adding any future period of membership under the Fund and attain eligible service of 10 years to get pension. The Family Pension Benefits will also be admissible in case of death of member if before 58 years of age even with less than 10 years of eligible service,” EPFO says.

Age above 58 years

If 10 years of eligible service is completed then you can apply for final settlement of PF through Composite Claim For (Aadhar) and Composite Claim Form (Non-Aadhar); and for Pension through Form 10D.

If 10 years of eligible service is not completed that you can apply for final settlement and withdrawal benefit from the pension fund through Composite Claim For (Aadhar) and Composite Claim Form (Non-Aadhar).

When Can You Withdraw EPF?

One may choose to withdraw EPF entirely or partially.

Complete Withdrawal

EPF can be withdrawn entirely only under the following two circumstances:

When an individual retires
When an individual is unemployed for more than one month, he/she can withdraw 75% of the total accumulated amount and can withdraw the rest 25% if the unemployment period stretches beyond two months.

Individuals cannot make a complete withdrawal of EPF balance while switching employers if they don’t remain unemployed for two months or more (i.e. the interim period between changing jobs).

Partial Withdrawal

Partial withdrawal of EPF balance can be made only under certain circumstances. They are explained in the table below.

Sl. No.	Particulars of reasons for withdrawal	Limit for withdrawal	No. of years of service required	Other conditions
1	Medical purposes	Lower of below: i. Six times the monthly basic salary, or ii. The total employee’s share plus interest,	No criteria	Medical treatment of self, spouse, children, or parents
2	Marriage	Up to 50% of employee’s share of contribution to EPF	7 years	For the marriage of self, son/daughter, and brother/sister
3	Education	Up to 50% of employee’s share of contribution to EPF	7 years	Either for account holder’s education or child’s education (post matriculation)
4	Purchase of land or purchase/construction of a house	For land – Up to 24 times of monthly basic salary plus dearness allowance. For house – Up to 36 times of monthly basic salary plus dearness allowance, The above limits are restricted to the total cost.	5 years	i. The asset, i.e. land or the house, should be in the employee’s name or jointly with the spouse. ii. It can be withdrawn just once for this purpose during the entire service. iii. The construction should begin within 6 months and must be completed within 12 months from the last withdrawn instalment.
5	Home loan repayment	Least of below: i. Up to 36 times of monthly basic salary plus dearness allowance, or ii. Total corpus consisting of employer and employee’s contribution with interest, or iii. Total outstanding principal and interest on housing loan	10 years	i. The property should be registered in the name of the employee or spouse or jointly with the spouse. ii. Withdrawal permitted subject to furnishing of requisite documents as stated by the EPFO relating to the housing loan availed. iii. The accumulation in the member’s PF account (or together with the spouse), including the interest, has to be more than Rs 20,000.
6	House renovation	Least of the below: i. Up to 12 times the monthly wages and dearness allowance, or ii. Employees contribution with interest, or Total cost.	5 years	i. The property should be registered in the name of the employee or spouse or jointly held with the spouse ii. The facility can be availed twice: a. After 5 years of the completion of the house, b. After the 10 years of the completion of the house
7	Partial withdrawal before retirement	Up to 90% of accumulated balance with interest	Once the employee reaches 58 years and withdrawal should be before one year of retirement/superannuation (retirement fund for employees by the company)

Here, it would be relevant to mention that the Employees’ Provident Fund Organisation has allocated UAN, i.e. the Universal Account Number compulsory for all the employees covered under the PF Act. The UAN would be linked to the employee’s EPF account. The UAN remains portable throughout an employee’s lifetime, and there is no need to apply for EPF transfer at the time of changing jobs.

Steps to Apply For EPF Withdrawal Online on UAN Portal

Step 1: Visit the UAN portal.

Step 2: Log in with your UAN and password. Enter the captcha and click on the ‘Sign In’ button.

Step 3: Click on the ‘Manage’ tab and select ‘KYC’ to check whether your KYC details such as Aadhaar, PAN and bank details are verified or not.

Step 4: Once the KYC details are verified, go to the ‘Online Services’ tab and select the option ‘Claim (Form-31, 19 10C & 10D)’ from the drop-down menu.

Step 5: The following screen will display the member details, KYC details and other service details. Enter your bank account number and click on ‘Verify’.

Step 6: Click on ‘Yes’ to sign the certificate of the undertaking and then proceed.

Step 7: Now, click on ‘Proceed for Online Claim’.

Step 8: In the claim form, select the claim you require, i.e. full EPF settlement, EPF part withdrawal (loan/advance) or pension withdrawal, under the tab ‘I Want To Apply For’. If the member is not eligible for any of the services like PF withdrawal or pension withdrawal due to the service criteria, that option will not be shown in the drop-down menu.

Step 9: Then, select ‘PF Advance (Form 31)’ to withdraw your fund. Further, provide the purpose of such advance, the amount required and the employee’s address.

Step 10: Click on the certificate and submit your application. You may be asked to submit scanned documents for the purpose you have filled the form. The employer will have to approve the withdrawal request, and then only you will receive money in your bank account. It usually takes 15-20 days to get the money credited to the bank account.

PF Customer Care Numbers

PF customer care/helpline number – 1800118005

PF missed call number for getting to know EPF details – 9966044425

PF toll-free number – 1800118005

PF balance enquiry number – SMS “EPFOHO UAN” to 7738299899

PF email – employeefeedback@epfindia.gov.in

PF Updates
The EPFO gives an interest rate of 8.1% to subscribers of the Employee Provident Fund (EPF) for 2022-23. It was the lowest interest rate since 1977-78, when the EPF interest rate was 8%.

Starting FY 21-22, interest on employee’s contribution to an EPF account above Rs 2.5 lakh during the financial year is taxable in the hands of the employee. This interest is also subject to TDS under section 194A.

Compliance Calendar for the month of March, 2022

Compliance Calendar for March 2022

Being the last month for the financial year, March is a significant month from the point of view of the tax compliance and other statutory due dates for ROC Reporting, GST Return Filings, and Income Tax Filing as it is the last month of the fiscal year. Every registered business and professional can benefit from a tax compliance and statutory compliance calendar to ensure that they are prepared for compliance well in advance.

We’ve put together a Compliance Calendar in three parts: a Compliance Calendar for March 2022 GST Due Dates, a Compliance Calendar for March 2022 Income Tax Return due dates, and a ROC Compliance Calendar for the Month of March 2022.

Due Dates are critical for all taxpayers, including businesses in India, to file GST Returns, IT Returns, and mandatory ROC documents by the regulations to avoid paying any interest or late fees.

Compliance Calendar for the Month of March 2022

Important due dates for the GST Returns in the Month of March 2022
Due date	Form to be filed	Period	Who should file?
10.03.2022	GSTR 7	February 2022	GSTR 7 is a return to be filed by the persons who are required to deduct TDS (Tax deducted at source) under GST
10.03.2022	GSTR 8	February 2022	GSTR-8 is a return to be filed by the e-commerce operators who are required to deduct TCS (Tax collected at source) under GST
11.03.2022	GSTR 1	February 2022	Taxpayers have an aggregate turnover of more than Rs. 5 Crores or opted to file Monthly Return
13.03.2022	GSTR 1 IFF	February 2022	Opted for quarterly filing as per QRMP Scheme
13.03.2022	GSTR 6	February 2022	Input Service Distributors
20.03.2022	GSTR 5 & 5A	February 2022	Non-Resident Taxpayers and ODIAR services provider
20.03.2022	GSTR 3B	February 2022	The due date for GSTR-3B having an Annual Turnover of more than 5 Crores
20.03.2022	GST Challan Payment	February 2022	If you don’t have enough ITC for February, you’ll have to pay a GST challan (for all Quarterly Filers).
Important due dates for the Income Tax Compliance / PF / ESI in the Month of March 2022
02.03.2022	TDS Certificate	January 2022	The deadline for submitting a challan-cum-statement for tax deducted under section 194-IA is in January 2022.
02.03.2022	TDS Certificate	January 2022	The deadline for submitting a challan-cum-statement for tax deducted under section 194-IB is in January 2022.
02.03.2022	TDS Certificate	January 2022	The deadline for submitting a challan-cum-statement for tax deducted under section 194M is in January 2022.
07.03.2022	TDS/TCS	February 2022	Deposit of tax deducted/collected for February 2022 is due on this day. All sums deducted/collected by a government office, however, must be paid to the Central Government’s credit on the same day that tax is paid without the provision of an Income-tax Challan.
15.03.2022	Advance Tax	AY 2022-23	Fourth Instalment of advance tax for the Assessment Year 2022-23.
15.03.2022	Section 44AD/44ADA	AY 2022-23	The due date for assesses is covered by the presumed scheme of section 44AD / 44ADA to pay the entire amount of advance tax for the assessment year 2022-23.
15.03.2022	Return of Income	AY 2021-22	If the assessee is (a) a corporate assessee or (b) a non-corporate assessee (whose books of account are required to be audited) or (c) a partner of a firm whose accounts are required to be audited or the spouse of such a partner if the provisions of section 5A apply, the due date for filing a return of income for the assessment year 2021-22 is.
15.03.2022	Report under section 92E	Ay 2021-22	Return of income for the assessment year 2021-22, if an assessee is required to file a report under section 92E relating to an overseas or defined domestic transaction.
15.03.2022	PF	February 2022	Due Date for the payment of PF contribution
15.03.2022	ESI	February 2022	Due Date for the payment of Employee State Insurance Contributions
17.03.2022	Section 194-IA	January 2022	In January 2022, the TDS Certificate for tax deducted under section 194-IA is due.
17.03.2022	Section 194-IB	January 2022	In January 2022, the TDS Certificate for tax deducted under section 194-IB is due.
17.03.2022	Section 194M	January 2022	In January 2022, the TDS Certificate for tax deducted under section 194M is due.
25.03.2022	PF Return	February 2022	Every month, all entities with PF registration must file a provident fund return. Each month’s PF return is due on the 25th.
30.03.2022	TDS under Section 194-IA	February 2022	The deadline for submitting a challan-cum-statement for tax deducted under section 194-IA is in February 2022.
30.03.2022	TDS under Section 194-IB	February 2022	The deadline for submitting a challan-cum-statement for tax deducted under section 194-IB is in February 2022.
30.03.2022	TDS under Section 194M	February 2022	The deadline for submitting a challan-cum-statement for tax deducted under section 194M is in February 2022.
31.03.2022	Aadhar number and PAN		The due date for linking PAN and Aadhar number information.
31.03.2022	Form no. 3CEAD	FY 2020-21	A parent entity or alternate reporting entity, resident in India, must submit a Country by Country report in Form 3CEAD for the prior year 2020-21 in respect of the multinational group of which it is a constituent.
31.03.2022	Form no. 3CEAD	The accounting Year 2020-21	A constituent entity, resident in India, must file a Country-By-Country Report in Form Number 3CEAD for a reporting accounting year (assuming the reporting accounting year is April 1, 2020, to March 31, 2021) in respect of the international group of which it is a constituent if the parent entity is not required to file a report under section 286(2) or the parent entity is a resident of a country with which India does not have an agreement for the exchange of reports, etc.
31.03.2022	Revised/Belated return	AY 2021-22	All assesses must file a belated/revised return of income for the assessment year 2021-22. (provided assessment has not been completed before March 31, 2021)
31.03.2022	Form 10A		Application for registration/provisional registration/intimation/approval/provisional approval of Trusts, institutions, or Research Associations, etc., in Form 10A. (which was required to be filed on or before 30-06-2021)
31.03.2022	Form 10AB		Application in Form 10AB for conversion of provisional registration to regular registration or renewal of registration/approval after five years of registration/approval of Trust, institution, etc. (which was due on or before February 28,2022).
Important due dates for Company Annual Filing in the Month of March 2022
15.03.2022	Form AOC 4 (CFS, XBRL, Non-XBRL)	FY 2020-21	Form AOC 4 filing by Companies (The deadline for submitting the Form was previously set for February 15, 2022, but it has been extended to March 15, 2022.)
31.03.2022	Form MGT 7/ 7A	FY 2020-21	Form MGT 7A filing by Companies and One Person Company (The deadline for submitting the Form was previously set for February 28, 2022, but it has been extended to March 31, 2022.)

The month of March 2022, is significant for the due dates for various compliances under the Goods and Service Act, Income Tax Act, Companies Act, and LLP Act. Filing the above-mentioned forms on or before the due dates will save the taxpayers from hefty penalties.

EPFO || STEP BY STEP PROCESS TO FILE ECR

Point 1: Login to EPFO portal using your ECR portal credentials:

Once logged in, you can check the details of Establishment Name,Establishment ID, Exemption Status (PF, Pension, EDLI), Establishment Address and PF office.

Point 2: To upload ECR, go to Payments tab >> ECR [UPLOAD]

Point 3: On next screen, i.e. ECR File Upload, click on ‘ECR Help File’ to view the ECR file format

It will appear as shown below:

To upload the ECR, select the Wage Month and Salary Disbursal Date.

Point 4: Select your ECR text file to be uploaded.

An ECR text file appears like the one below:

Select the remaining fields like File Type (Select ECR), Contribution Rate % (Default value is 12%), add comment, and click on Upload Button:

Point 5: Once uploaded, the file will be validated by the portal against the pre-defined conditions. Once validation is successful, you can see the following screen with ‘Validation Successful’ message:

Click on Verify button to generate TRRN (Temporary Return Reference Number).

noted :-uploaded ECR file fails, you will get an error message.

Point 6: Generate ECR summary sheet by clicking on ‘Prepare Challan’ button.

Point 7: On the next screen, you can adjust “Total EDLI Contributions (ER Share A/C 21)” (if required), enter Administration & Inspection Charges for “Total EPF Charges (A/C 2)” & “Total EDLI Charges (A/C 22).”

Once done, click on ‘Generate Challan’ Button.

point 8: From the challan list page that follows, click on “Finalize” icon after reviewing the Total Amount, under Draft Challan List. You can also download Acknowledgment File and Receipt File under “In-Process Challan List”.

Point 9: The finalized ECR (Electronic Challan-cum-Receipt) will look similar to this:

Point 10 Once finalized, you can go ahead and make the payment. Click on “Pay” button to make the payment:

Point 11: Please select Payment Mode as “Online”, and select the bank from the list from which you wish to make the payment. Once selected, click on “Continue” and this will navigate you to payment gateway for completing the payment.

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STEP BY STEP PROCESS TO FILE ECR

Point 1: Login to EPFO portal using your ECR portal credentials:

Once logged in, you can check the details of Establishment Name,Establishment ID, Exemption Status (PF, Pension, EDLI), Establishment Address and PF office.