PF Account Transfer: There is great news for crores of employed people. The government has made a big announcement.
Actually, the retirement fund body EPFO has simplified the process of transferring PF account when changing jobs. Now in most cases there will be no need to take approval from the employer. This information was given in an official statement on Friday.
Ministry of Labor and Employment gave information
The Ministry of Labor and Employment said that till now, two Employees Provident Fund (EPF) offices were involved in the transfer of Provident Fund (PF) deposits. One of these was the source office, from where the PF amount was transferred and the other was the destination office, where the amount was finally deposited. However, now with the aim of making this process more simple, EPFO has eliminated the need for approval of all transfer claims at the destination office by introducing a revised Form-13 software system.
What is the detail
Now, once the transfer claim is approved at the source office, the previous account will be automatically transferred to the member’s current account at the next office, thereby serving the purpose of facilitating EPFO members. This revised system also provides for bifurcation of taxable and non-taxable components of PF accumulations, thereby facilitating accurate calculation of TDS (tax deduction at source) on taxable PF interest.
The ministry said this is expected to benefit over 1.25 crore members, enabling transfer of about Rs 90,000 crore every year, as the entire transfer process will be expedited. In addition, a facility has been introduced to create multiple UANs simultaneously based on member ID and other available member information for instant credit of funds to members’ accounts.
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