JOIN USEmployees’ Provident Fund Organization (EPFO) has sent a proposal to the government for making Universal Account Number (UAN) compulsory for EPF transactions.
The organisation has said this is essential to fully realize the potential of UAN in offering various services to EPF members.
Meanwhile, the EPFO has said on Friday that TDS will be deducted on PF payments from June 1, if the accumulated amount is more than Rs 30,000 with less than five years of service.
Provided to EPF subscribers for identity purposes, UAN remains constant despite change of jobs.
To increase wider use and applicability of UAN, EPFO has launched the facility to generate UAN for members who have joined PF exempted organisations after September 1, 2014 with the wage bracket of Rs 15,000 while joining.
“With effect from 1st June 2015, Income Tax shall be deducted at source (TDS) if at the time of payment, the accumulated PF balance is more than or equal to Rs 30,000 with service less than 5 years. TDS will be deducted at the rate of 10 percent provided that PAN is submitted,” the EPFO said.
However, TDS shall not be deducted in case of transfer of PF to a different PF account, termination of service due to member’s ill health, discontinuation or contraction of business by employer or other cause beyond the member’s control.
Also, no TDS shall be applied if withdrawal is made after five years of continuous service.
The organisation signed agreements for new portfolio managers for EPF corpus management with SBI, HSBC Asset Management (India) Pvt Ltd, Reliance Capital Asset Management Ltd, ICICI Securities Primary Dealership Ltd and UTI Asset Management Company Ltd.
Also, discussions were held with Life Insurance Corporation of India (LIC) and Securities Exchange Board of India (SEBI) to implement the decision to invest in equity.