Monday, February 2, 2015

How to Activate and Access Your Dormant EPF Account

Nomination

Nomination : http://flame.org.in/KnowledgeCenter/NomineeanditsImportance.aspx
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Getting the Transfer/Withdrawal done

One of my friends had his transfer application (from mumbai to bangalore) stuck in the EPFO office for 1 year 6 months. 
He managed to resolve the situation by logging a compliant in  "Public Grievance Portal of Government of India". Apparently this helped to resolve the issue in 6 months time. 
EPFO HAD TO keep updating the status every day till they closed the complaint.
Additionally a complaint was registered with his company via this site for "No Transfer of PF account" : http://www.consumercomplaints.in
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To PF or not to PF

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EPS

Though amount in EPS is small, the accumulated amount earns no interest i.e. depreciates due to inflation!!! Better to withdraw before 10 years of service.

Abhishek Bade, Assistant Manager-HR, IIFL, explains, “To withdraw from EPS, an employee needs to contribute at least for six months.  He has to fill Form No. 10 C (E.P.S) to claim withdrawal benefit. However, if the employee completes 10 years of the service, the withdrawal option ends. Thus, after 10 years of completion of the service, the employee cannot withdraw from his EPS.”

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Tax on EPF

Need to CLAIM deduction while filing Tax Return :
The employer contribution is exempt from tax, while an employee’s contribution is taxable but eligible for deduction under Section 80C of Income tax Act. The money which you initially invest in EPF, the interest you earn and, finally the money you withdraw after a specified period (5 years), are all exempt from income tax.
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Get balance status of your new and old PF accounts via SMS on mobile

  • To register for status/balance of your PF via SMS : http://www.epfindia.com/MembBal.html
  • Search for exact RCPF Office related to your account : http://search.epfoservices.in/estt_search/est_search.php
  • Register for E-PassBook facility for your ACTIVE PF Account : http://members.epfoservices.in
  • Provident Fund FAQ (Frequently Asked Questions) : http://members.epfoservices.in/faq.php
1) Read the instructions on how to enter information
   a) Enter new PF number (see below on how to get your new PF number from old PF number)
   b) Name (as in PF account)
   c) Mobile Number (to send SMS of a/c balance)

2) For example: I entered in the following format: XY/ABC00XXXXX/000/<myPFnumber>
    Got following result screen for my PF number:
    "STATUS for Member ID: XY/ABC/00XXXXX/000/0000XXX
    Your EPF balance has been sent through SMS on your specified mobile number.
     You shall receive the SMS shortly.
      **Data updated till DD-MM-YYYY HH:MM:SS"

3) However I did not get any SMS from EPFO.
    So I had to figure out what the system was expecting by trial and error as below.
    If you don't get an SMS within 1 hour it means that
    a) You've entered something wrong in the new PF number (see below on how to get your new PF number from old PF number)
     (OR)
    b) Your old PF a/c is INOPERATIVE (no contributions for last NN months).
    You'll need to get it transferred through Form 13, Form 19

4) To get the new PF number from your old PF number
    Search for exact RCPF Office related to your account :  http://search.epfoservices.in/estt_search/est_search.php
    A) Give your old PF a/c number and search for new PF a/c number by searching for
         a) company name
         b) old establishment code.

    B)Result web page will give you the following information
        Shows how to convert the old PF number format to New PF number format:
         a) Old Region Code/ Establishment.Code/ Establishment.Extension
         b) Region Code/ Office Code/ Establishment Code/ Establishment.Extension
         NOTE:  To get New PF a/c Number append the last number at the end of old PF number to your new PF number
         AA/BBB/00XXXXX/XXX/000XXXX
         c) It'll also show the EPF office and address with which you have your account.

Note: I initially referred to below method but it did not get SMS though details were accepted.
Howto Check Balance : http://taxguru.in/finance/know-online-status-of-claim-under-epf.html
Example PF checking : http://www.consumercomplaints.in/complaints/accenture-services-private-ltd-c102249.html

Note:
A) Register for E-PassBook facility for your **ACTIVE** PF a/c: http://members.epfoservices.in
B) Read the FAQ (Frequently Asked Questions) : http://members.epfoservices.in/faq.php for
    a) facilities available with E-PassBook or common problems and their solutions.
    b) how to get old (but ACTIVE) and old(but INOPERATIVE) accounts from previous companies transferred to CURRENT PF a/c.
C) Apply with Transfer Form 13 and Withdrawal Form 19 for INOPERATIVE PF a/cs for respective purposes.

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What is difference between PF, EPF, GPF, PPF.

The difference is as follows
GPF - General Provident Fund which is for the Government Employees
PPF - Individuals can save to a maximum of Rs.60000/- in a year in the account. Account can be maintained in a Post Office.
EPF - Employees Provident Fund for Private sector where 12% of Employees share and 12 % of Employer's share of Basic Salary + DA is deducted and remitted to PF Authorities.
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EPF/PF: Employee Provident Fund( provident fund ) is a retirement benefit scheme that is available to salaried employees.Stipulated amount (currently 12%) is deducted from the employee's salary and contributed towards the fund.The employer also contributes an equal amount to the fund which is divided in 2 parts.
A. Pension Fund- Employers' share 8.33% of Basic Pay.
B. Provident Fund- Employers' share 3.67% of Basic Pay.
(Simple Interest of 8% per annum is appicable on Employees' contribution and Employers Contribution of 3.67%)
(If a employee holds a PF account for 10+ years under same company with same employee code then he/she can claim for pension there after or can withdrawl the amount of Pension fund before 10yrs but no intereset is applicable in the amount).
PPF: The Public Provident Fund has been established by the central government. You can voluntarily decide to open one.The minimum amount to be deposited in this account is Rs 500 per year. The maximum amount you can deposit every year is Rs 70,000.

Karnataka EPF office : http://epfindia.gov.in/epfo_directory_kngoa.html
Regional office site link to check your PF status/balance : http://www.epfindia.com/RegSites.html
Karnataka Regional Office : http://www.epfindia.com/MembBal.html

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Application to Withdraw or Transfer PF Account

Things to Remember when filling up the form:

1. Fill in all details like name, date of birth, address etc. legibly without any overwriting or errors
2. Sign the form in a consistent manner – if the signature does not match the original sign submitted at the time of account opening, our request could be rejected
3. If your PF Account number is incomplete or incorrect, the request will be rejected
4. If your Bank account details are incomplete or incorrect, the request will be rejected
5. Your date of joining/resignation must match the PF Office records (which will match the employer records). So, enter only the correct dates

6) Bank account is 12 digit number
7) Bank account should be held only in employee name
8) 1 rupee stamp on application (not required)
9) Employer has to update authorised signatory every 3 years with EPFO office.

Remember – We are dealing with a government department here. So, even fully filled and complete forms may get delayed for no apparent reason. If you submit an incomplete form, there will be all the more reason for delays for rejections.
Check EPF balance and Status online and Conditions for Withdrawing Balance : http://www.investmentyogi.com/planning/how-to-check-employee-provident-fund-epf-balance-and-status-online.aspx
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