If you are a salaried employee, then you must be familiar with the Employee Provident Fund, popular called EPF. Out of your basic salary, 12% is compulsorily deducted and added to your EPF account. Your employer makes an equal contribution towards your EPF. The money in the EPF is managed by the EPFO.
Any Company with more than 20 employees has to register with the EPFO as per laws. EPFO has more than 6 Crore subscribers. Currently, EPF interest rates are at a 5 year low of 8.55%. You will soon see ETF (Exchange Traded Fund) units in your PF account. EPFO had started investing money in ETFs way back in August 2015. EPFO will raise the equity investment limit to 25%, especially for subscribers who earn a high salary.
Your money invested in the stock markets via ETF is managed by SBI Mutual Fund, UTI Mutual Fund and CPSE (Central Public Sector Enterprise).
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For EPF withdrawals above Rs 10 Lakhs, online filing of claims is compulsory. EPFO has also made it mandatory to file online claims for withdrawals of above Rs 5 lakh under the Employees Pension Scheme 1995. Let's understand the EPF Online withdrawal Process in a simple manner.
Before you move to the EPF Online withdrawal Process, make sure that:
SEE ALSO: EPF Interest Rates Slashed?
STEP 1 : You must first log on to the UAN Portal.
STEP 2: You go to the "Manage Tab" and verify if KYC details like Aadhaar, PAN and bank details are correct.
STEP 3: After you verify KYC, you select the claim option from the Online Services Tab. On the screen you will see, Member, KYC and other Service details.
STEP 4: You hit the Proceed For Online Claim tab and submit your claim form.
STEP 5: You select the appropriate criteria under, "I Want To Apply For" field. Only eligible options will be shown in the drop-down box.
STEP 6: After you select the relevant claim, a detailed form will be shown to you. You must fill the form online, and authenticate using the Aadhaar OTP to submit your claim.
STEP 7: EPFO will obtain KYC (Aadhaar) details from UIDAI, and process your online PF claim. Your bank account gets credited with the claim amount.
STEP 8: You can track the claim status through, "Track Claim Status", under the 'Online Services' menu.
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EPF is an excellent investment which enjoys the EEE benefit. Your contribution to the EPF is tax deductible up to Rs 1.5 Lakhs a year, under Section 80C. The interest you earn and the amount at withdrawal are tax-free. Be Wise, Get Rich.
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