8/11/2019 Changes in Provident Fund Rules_ 7 Things to Know - Yahoo India Finance

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Changes in Provident Fund rules: 7 things to know

Planning for retirement is as important as planning for ones career and marriage. Everybody

wishes to have a secure, independent retirement life, where you would not depend on others for

your needs. Investments and allocations are accordingly channelized in this direction to achieve the

desired goals. The Employee Provident Fund (EPF), Employee Pension Scheme (EPS) and Public

Provident Fund (PPF) are some of the popular products to invest for the retirement years.

In the past few months, radical changes have been introduced in these schemes. Let us have a look

at them.

1) PF portability:Every time you join a new company, y ou were given a new PF number. T hen

you had the option of moving your funds to the new account. Whether y ou did this or not affected

the taxability of your PF deposits. Not any more. Y our PF accounts are now going to be portable.

The Prime Minister Narendra Modi is going to launch the much-awaited Universal PF Account

Number (UAN) website to enable PF portability on October 16. The UAN will be portable

throughout the working career of an employee. With the UAN in place, workers in the organized

sector need not apply for transfer of PF claim in case of job-change. This means, the PF subscriber

will not get a new number on joining a new firm. Instead the employee will get an ID linked to UAN.So, this mechanism will help in smoothening PF transfer claims. The new website is expected to

provide an individual personalized log-in mechanism to help in tasks like viewing updated PF

amount, transfer claims and updating KYC.

Currently, the EPFO is in the process of linking the UAN of its 40 million subscribers with their

bankaccounts, Permanent Account Number (PAN), Aadhar and other identification details.

2) Bank account and PF portability:The retirement fund body has asked companies to

provide bank account numbers of their employer members by October 1 5. It has also asked for the

IFSC or Indian Financial System Code number for easy transfer of PF payment. The IFSC helps

identify the branch where the account is based. This helps transfer money easily. The bank account

numbers with IFSC codes will be linked to the Universal PF Account Number (UAN). This will help

in portability of PF accounts.

3) Higher PF wage ceiling:The retirement fund body Employee Provident Fund Organization

(EPFO) has raised the salary limit for maintaining a PF account to Rs 15,000. Earlier, the limit was

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8/11/2019 Changes in Provident Fund Rules_ 7 Things to Know - Yahoo India Finance

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