Right from making investments in ETFs to introducing a single page and composite PF claim form for pensioners and helping people to buy their dream homes, retirement fund body EPFO has taken many steps recently.
Right from making investments in ETFs to introducing a single page and composite PF claim form for pensioners and helping people to buy their dream homes, retirement fund body EPFO has taken many steps recently. In fact, EPFO does not only want to increase its funds/wealth under management by increasing investments in the equity market, but it is also trying to encourage the use Aadhaar and PAN card among the citizens.
Here are the 7 recent changes and proposals made by EPFO:
EPFO plans to invest in equity market
The Employees Provident Fund Organisation plans to invest up to 15 percent of their investable amount in the equity markets during the next fiscal. EPFO also wants to increase its investment from 5 per cent to 15 per cent of the investable income of the organization every year.
EPF investment in ETFs
Till the last month, that is February 2017, EPFO has invested in ETFs in the following categories:
(i) The total amount of Rs 17105 crore in Nifty and Sensex Index based ETF’s.
(ii) The total amount of Rs 1504 crore in CPSE Index based ETF.
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EPFO introduces home loan repayment
The government has recently announced that they are going to amend the EPF scheme for around 4 crore members of retirement fund body EPFO to withdraw their fund up to 90 percent for making down payments while purchasing home for themselves. The amendment in the scheme will also allow the Employees’ Provident Fund Organisation subscribers to use their own EPF accounts for paying monthly installments that are EMIs of the home loans.
Revenue stamps not required on EPF claim
Retirement fund body EPFO has directed that no revenue stamp need to be affixed on EPF claim forms in case the payments are made through the digital process via National Electronic Fund Transfer (NEFT) e-transfer. The Employees Provident Fund Organisation (EPFO) has issued this directive after noting that some PF-exempted establishments are still demanding to affix a rupee one revenue stamp on their claim forms.
EPFO extends the last date of Digital Life Certificate
Members and all pensioners of the Employees’ Pension Scheme 1995 are required to submit their Aadhaar number by 31st March 2017 for updating the Digital Life Certificate through Jeevan Pramaan Patra. Earlier the last date was 28th February 2017. Still, a week’s time is left for those who have not submitted the certificate as yet. Moreover, in case a member has not been allotted an Aadhaar number, then he/she can attach a copy of the Aadhaar Enrolment ID slip for settlement of claims under EPS 1995, especially for pension processing and monthly pension payments.
EPFO introduces Single Page Composite Claim Form
Citizens or individuals who are the subscribers of EPFO can now easily withdraw their money from the PF account without disclosing much information. The benefit of this new initiative can be taken by filing only one Aadhaar-based common composite form. However, the non-Aadhaar user needs to mention a few more details while filling up the form.
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Non- PAN user to pay extra TDS while claiming
It is a must to have a PAN card while making a claim through the new form. Otherwise, you will have to pay a heavy penalty. Firstly, it is to be noted, TDS will be deducted by EPFO if your services are less than 60 months. If you have a PAN card, then in such a case the TDS will get deducted at 10 per cent. In case you have not submitted the PAN card, then TDS at 34.608 percent will get deducted. However, no TDS will get deducted in the case the total balance in your PF account is less than Rs 50000.