Best printers for Home

Best Mixer Grinder

Best wired Earphones

Best 43 Inch TV in India

Best Wi Fi Routers

Best Home Theatre in India

Smart Watch under 5000

Best Laptops for Education

Best Laptop for Students

New <keyword id="3324314" type="UNKNOWN" weightage="100" keywordseo="EPFO-rules">EPFO rules</keyword> restricting employees from withdrawing their full provident fund amount will be effective from May 1st, which means that if you are unemployed for 2 months or more and want to withdraw your full EPF, you only have 15 days left. If the deadline is missed, the withdrawal amount will be restricted and the full amount would only be accessible to you on turning 58. 
 
It was on Feb 10, 2016 that the ministry of labour and employment had made huge changes in the EPF rules, which would now restrict the withdrawal of EPF corpus. 
 
Earlier, a member of EPFO could withdraw 100% of the accumulated corpus, the sum total of employer's contribution, employee's contribution and their interest, if (s)he had been unemployed for a period of 2 months or more. However, the new EPF rules put a restriction on the amount that can be withdrawn. The new rule says that a member, after being unemployed for 2 months or more, will only be able to withdraw his own contribution and the interest earned on it. This means that the sum of employer's contribution and its interest will be able to be withdrawn only after the age of 58 years. 
 
However, as a lollipop for the customers, the rule says that 90% of the employer's contribution plus interest can be withdrawn at the age of 57 years. 
 
<a href="http://myfertilitychoices.com/wp-content/uploads/2013/06/Time-to-Decide-.jpg">Image source</a>

Hurry up! 15 more days and you won't be able to withdraw your full EPF until you turn 58

<ul><li>Employees can now withdraw 75% of the <keyword id="114854" type="ORGANIZATION" weightage="20" keywordseo="Employee-Provident-Fund">Employee Provident Fund</keyword> (<keyword id="45027" type="ORGANIZATION" weightage="20" keywordseo="EPF">EPF</keyword>) if they’ve been unemployed for a month. </li><li>This also means that the EPF account won’t be shut. </li><li>The continuity of the EPF account is crucial for pension and taxation on withdrawals.</li></ul>There have been a number of changes made to the Employee Provident Fund (EPF) over the past couple of years, so many that it is sometimes hard to keep track of. Most recently, however, the big change has been that subscribers can <a href="https://www.newsx.com/business/epfo-allows-members-to-withdraw-funds-for-marriage-house-purchase">withdraw 75% of their EPF balance</a> provided that they’ve been unemployed for at least a month. And, you won’t have to close your account. This is important because according to earlier rules if someone’s been unemployed for more than two months, they could withdraw their entire balance. But, that also meant that they would have to discontinue their account. The account lives on The EPF is the <a href="https://www.bankbazaar.com/tax/all-about-epf.html">culmination</a> of your contribution, your employer’s contribution and interest accrued on that principal amount. So, this measure lets you liquidate your investment like an advance against the principal. Liquidity may be the short-run gain, but in the long-run, the survival of the EPF account is much more significant. As per the rules of the Employee Provident Fund Organisation (EPFO), in order for a subscriber to be <a href="https://www.businesstoday.in/current/economy-politics/epfo-pf-withdrawal-procedure-employer-employee-salary/story/279312.html">eligible</a> for pension, they have to maintain their EPF account for at least 10 years. In case the account shuts down before the stated time period, the process will have to be started all over again with a new account. So since your account won’t be discontinued if you’re withdrawing 75% of your EPF, it will remain eligible for pension. That being said, the continuity of your account is also important for <a href="https://www.bankbazaar.com/saving-schemes/pf-withdrawal-rules.html?ck=Y%2BziX71XnZjIM9ZwEflsyDYlRL7gaN4W0xhuJSr9Iq7aMYwRm2IPACTQB2XBBtGG&amp;rc=1">taxation</a> purposes. Any withdrawals that are made from the EPF account before five years are taxable. But should your account stay intact, the withdrawals are completely <keyword id="880043" type="PERSON" weightage="20" keywordseo="Tax-free">tax-free</keyword> after the first five years. The withdrawal you make if you’ve been unemployed for a month is tax-free in either situation, but the interruption would affect withdrawals for marriage, education, home loans etc. And, it’s not just the interest that’s taxed. It’s the principal amount as well. Overall, the EPFO has taken progressive steps towards evolving the fund for today’s market even though the latest interest of 8.55% is the <a href="https://www.financialexpress.com/money/epfo-alert-modi-government-to-notify-8-55-interest-on-provident-fund-this-week-check-details-here/1157155/">lowest</a> it has witnessed in 5 years. They’ve introduced equity traded funds (ETFs) instead of being limited to fixed income instruments. Reports say that the EPFO may even have plans of letting subscribers <a href="https://economictimes.indiatimes.com/wealth/personal-finance-news/epfo-members-to-get-option-to-hike-investments-in-etfs-by-this-fiscal/articleshow/63815546.cms">choose</a> the amount of money they would want to be put into equity instead of the blanket 15% implemented right now.

Here's why the new EPF rules make good sense in the long-run

10 best tax-saving investments

Aimed at ensuring basic rights and better conditions for about 3 crore people in the <a href="http://www.businessinsider.in/searchresult.cms?query=unorganized+sector">unorganized sector</a>, the government might come up with a proposal to make it incumbent on households to hire domestic workers through a placement agency. 
 
The new rule might include paid leave and other benefits for those people. If new rules got implemented, the violators could find themselves in a lot of trouble, reported the Economic Times. 
 
Other key elements of the proposal include proper accommodation. 
 
Moreover, if anyone would be hired outside the placement system, he or she would be treated as bonded labour and employers would be penalised accordingly. 
 
The <a href="http://www.businessinsider.in/searchresult.cms?query=Ministry+of+Labour+">Ministry of Labour</a> would soon move a Cabinet note on a national policy for domestic workers. This idea was first mooted by the <keyword id="83449" type="ORGANIZATION" weightage="80" keywordseo="United-Progressive-Alliance">United Progressive Alliance</keyword> (<a href="http://www.businessinsider.in/searchresult.cms?query=UPA">UPA</a>) government in 2007. 
 
A senior official told the financial daily that the rules if implemented will make the employer liable to pay for the worker's social security apart from one month of paid annual leave, two months of paid <a href="http://www.businessinsider.in/searchresult.cms?query=maternity+leave+">maternity leave</a> and a weekly off. 
 
"For the first time, we would have a rights-based policy for <a href="http://www.businessinsider.in/searchresult.cms?query=domestic+workers+">domestic workers</a> in the country. It will be a game changer and would help in formalisation of the country's growing workforce," said the official. 
 
As per the proposal, employees and employers will have to sign a contract that lists standard practices which both sides will have to abide by. "The placement agencies involved will be the third party to the agreement besides two representatives from trade unions to ensure that the employee is not denied of his or her basic rights," he said. 
 The draft agreement, which is being finalised and could be taken up for stakeholder consultation in two weeks, has proposed that the employer will have to mandatorily contribute to the <keyword id="686752" type="ORGANIZATION" weightage="60" keywordseo="Employee-State-Insurance-Corporation">Employee State Insurance Corporation</keyword> and the <a href="http://www.businessinsider.in/searchresult.cms?query=Employee+Provident+Fund+Organisation+">Employee Provident Fund Organisation</a> (<keyword id="6372438" type="ORGANIZATION" weightage="100" keywordseo="EPFO">EPFO</keyword>) to ensure medical and life coverage to the employee. 
 
(Image: Indiatimes)

Placement agencies will help hire domestic help soon

<ul><li>The Union Cabinet had approved the <keyword id="10403683" type="UNKNOWN" weightage="20" keywordseo="atmanirbhar-bharat-rojgar-yojana">Atmanirbhar Bharat Rojgar Yojana</keyword> at an expenditure of ₹22,810 crore for two years. </li><li>Under this new employment scheme, the government will provide both employee and employer contributions to the retirement fund for new hires for two years.</li><li>This subsidy will be eligible for new employees engaged on or after October 1. </li><li><a href="https://www.businessinsider.in/">Check out the latest news and updates on Business Insider.</a></li></ul>The Union Minister Santosh Kumar Gangwar at cabinet briefing said the Union Cabinet had approved the Atmanirbhar Bharat <keyword id="638835" type="PERSON" weightage="20" keywordseo="Rojgar-Yojana">Rojgar Yojana</keyword> at an expenditure of ₹1,584 crore for the current financial year. The scheme will cost ₹22,810 crore to the government for the entire period of 2020-2023 and aims to benefit around 58.5 lakh employees in the country. <div type="twitter" handle="PIB_India" handlename="PIB India" image="http://pbs.twimg.com/profile_images/1313803439340548097/jcQYJdhp_normal.jpg" favoritecount="214" retweetcount="65" status="📡LIVE NOW📡#Cabinet briefing by Union Ministers @PrakashJavdekar, @rsprasad and @santoshgangwar… https://t.co/aic3trQbp0" createdat="1607506554000" id="1336605482685886464"></div> Under this new employment scheme, the government will provide both employee and employer contributions to the retirement fund for new hires for two years, Labour Minister Gangwar said. The ministry will notify rules for the scheme soon, which is applicable for enterprises having up to 1000 employees and are creating new jobs. For the enterprises having more than 1000 workers, the reimbursement will be restricted to 12% of the employees contribution only. Who benefits from this scheme? <ul><li>Any new employee joining employment in the EPFO registered establishments with monthly wages less than ₹15,000.</li><li>EPFO members drawing monthly wages of less than ₹15,000 who exited employment during COVID-19 pandemic from March 1 to September 30 and had been hired on or after October 1, 2020. </li></ul>Benefits for companies registered with EPFO The central government will give the subsidy for two years for new eligible employees engaged on or after October 1 at the following scale. <ul><li>Establishments employing up to 1,000 employees will get a contribution of 12% of employee wages and 12% as employers contributions, totalling up to 24% of wages. </li><li>For establishments employing over 1000 employees, only 12% of wages of the employees will be given. </li></ul>Here’s the eligibility criteria for companies to obtain benefits under this scheme To avail of benefits under this scheme, organisations with fewer than 50 employees will have to hire at least two employees. And those with more than 50 employees will have to hire five or more employees. SEE ALSO: <a href="https://www.businessinsider.in/india/news/farmers-protest-talks-between-amit-shah-and-farmer-leaders-fail-sixth-round-of-talks-uncertain/articleshow/79635770.cms" data-type="tilCustomLink">Farmers' protest: Talks between Amit Shah and farmer leaders fail — sixth round of talks uncertain</a> <a href="https://www.businessinsider.in/finance/banks/news/supreme-court-told-that-blanket-waiver-of-moratorium-loans-would-take-6-lakh-crore-and-wipe-out-the-net-worth-of-banks/articleshow/79636002.cms" data-type="tilCustomLink">Supreme Court told that blanket waiver of moratorium loans would take ₹6 lakh crore and wipe out the net worth of banks</a>

Atmanirbhar Bharat Rojgar Yojana — India's new employment scheme will cost the government ₹22,810 crore

Finance Minister <keyword id="19916618" type="General" weightage="20" keywordseo="Nirmala-Sitharaman" source="keywords">Nirmala Sitharaman</keyword> on Tuesday announced <keyword id="20404375" type="General" weightage="20" keywordseo="income-tax-relief" source="keywords">income tax relief</keyword> for the <keyword id="20071167" type="General" weightage="100" keywordseo="middle-class" source="keywords">middle class</keyword>, a Rs 2 lakh crore outlay for <keyword id="22517841" type="General" weightage="20" keywordseo="job-creation-schemes" source="keywords">job creation schemes</keyword> over the next five years and a spending splurge for states run by her party's new coalition partners as she unveiled <keyword id="20509939" type="General" weightage="20" keywordseo="Modi-3-0" source="keywords">Modi 3.0</keyword> government's first budget after the general elections. With rural distress and unemployment being blamed for BJP losing its majority, Sitharaman in her seventh straight budget provided Rs 2.66 lakh crore for <keyword id="20027688" type="General" weightage="20" keywordseo="rural-development" source="keywords">rural development</keyword> and maintained spending on long-term infrastructure projects at Rs 11.11 lakh crore to boost <keyword id="19900794" type="General" weightage="20" keywordseo="economic-growth" source="keywords">economic growth</keyword>. She abolished 'angel tax' for all classes of investors in startups, cut customs duty on mobile phones and gold and simplified capital gains tax. She, however, raised the securities transaction tax (STT) on futures and options of securities, which led to tanking of stock markets. "India's economic growth continues to be the shining exception (in a world that is gripped by policy uncertainties) and will remain so in the years ahead," she said. "In this budget, we particularly focus on <keyword id="19898684" type="General" weightage="20" keywordseo="employment" source="keywords">employment</keyword>, <keyword id="20374219" type="General" weightage="20" keywordseo="skilling" source="keywords">skilling</keyword>, MSMEs, and the middle class." Besides Rs 2 lakh crore provided over a five year period for schemes and initiatives to facilitate employment, skilling and other opportunities for 4.1 crore youth, "I have made a provision of Rs 1.48 lakh crore for education, employment and skilling," she said. For Bihar, where assembly elections are due next year, the finance minister announced spending of Rs 60,000 crore on infrastructure projects like expressways, power plant, heritage corridors and new airports. The support to Bihar, whose ruling party and BJP's partner JD-U has been demanding an economic package and special category status for the state, is in the form of capital projects but not subsidy or cash dole. Similarly, for Andhra Pradesh, whose ruling TDP recently joined BJP-led NDA, she allocated Rs 15,000 crore in financial aid through multilateral agencies. A similar request for support to Bihar will be expedited, she said. For the middle class, she raised standard deduction -- a flat deduction from total salary earned by an employee in a year before calculating applicable income tax rate -- by 50 per cent to Rs 75,000 and tweaked tax slabs for taxpayers opting for the new income tax regime. This will lead to taxpayers under the new tax regime -- which offers lower rates of taxes but permits limited deductions and exemptions -- saving up to Rs 17,500 in tax annually, she said. To spur employment, the Budget provided for incentives for companies, including paying for one-month salary for first-time employees, incentive at specified sale to both employee and empower with respect to their retirement fund contribution in the first four years of employment and reimbursing employers up to Rs 3,000 per month for 2 years towards EPFO contribution of each additional employee. Also, a programme to improve skills as well internship for students and subsidised loans for higher education will be provided, she said. India's official unemployment rate in urban areas is pegged at 6.7 per cent but private agencies put it at much higher levels. Buoyed by robust tax collections and a higher-than-expected dividend receipt from the Reserve Bank, Sitharaman said the government's fiscal deficit -- the difference between the total revenue earned and total expenditure -- will be trimmed to 4.9 per cent of the GDP in 2024-25, below the 5.1 per cent figure estimated in the interim budget she presented in February. She reduced gross market borrowing marginally to Rs 14.01 lakh crore. The Budget for 2024-25 fiscal (April 2024 to March 2025) allocated Rs 1.52 lakh crore for agriculture and allied sectors, aid for building 3 crore affordable housing units in urban and rural areas, provided credit support to small and medium businesses, raised small loans to Rs 20 lakh for small business, proposed setting up 12 industrial parks, and provided for setting up a Rs 1,000 crore venture capital fund for space sector.

Modi 3.0 1st Budget: Tax relief for middle class, Rs 2 lakh cr job scheme

<ul><li>The <keyword id="47209" type="General" weightage="20" keywordseo="finance-ministry" source="Orion">finance ministry</keyword> had proposed in its latest Budget Session that employee accounts with more than ₹2.5 lakh annual contribution will be taxable sooner.</li><li>Employees' Provident Fund Organisation (EPFO) has over six crore subscribers.</li><li>The move is aimed to tax HNIs who benefit from tax-free interest income on their large contributions to PF accounts.</li></ul>The government on August 31 announced that Employees Provident Fund (EPF) accounts with more than ₹2.5 lakh annual contribution will be taxed. It was proposed by the government in Budget 2021 that interest on Employees’ Provident Fund (EPF) and Voluntary Provident Fund (VPF) contributions above ₹2.5 lakh in a financial year will be taxable. <cmsannotation type="cmsannotation" annotationid="Why did the government decide to impose tax on excess EPF contributions?" comment="subhead" text="Why did the government decide to impose tax on excess EPF contributions?">Why did the government decide to impose tax on excess EPF contributions?</cmsannotation> The government found out that employees were contributing huge amounts to the PF funds as it ensured 8% returns and tax exemptions at all stages. EPF accounts are like a common man’s retirement fund as they earn average earnings. It is mandatory for employees earning up to ₹15,000 a month in firms with over 20 workers, with 12% of the basic pay and dearness allowance (DA) deducted as employees’ contribution and another 12% remitted by the employer. However, government as well as private sector employees are allowed to make voluntary contributions over and above the statutory deductions. So, to exclude high net worth individuals (HNIs) from the benefit of tax-free interest income on their large contributions, the government has set a threshold limit of ₹2.5 lakh for tax exemption. Those who have contributions below ₹2.5 lakh will not be charged. <cmsannotation type="cmsannotation" annotationid="How will the contribution be taxed?" comment="subhead" text="How will the contribution be taxed?">How will the contribution be taxed?</cmsannotation> The new rules say that for better calculation, two separate accounts shall be maintained from 2021-22 for taxable and non-taxable contributions made by a person. For individuals in the higher tax bracket of 30%, the interest income on contributions above ₹2.5 lakh would get taxed at the same marginal tax rate. For instance, if an individual contributes ₹3 lakh every year to the provident fund (including the voluntary PF contribution) then the interest on his contribution above ₹2.5 lakh, which is ₹ 50,000 will be taxed. This only applies to contributions made from 1 April 2021. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/vijaya-diagnostic-ipo-last-day-for-subscription-allotment-on-september-8/articleshow/85879245.cms">Vijaya Diagnostic IPO’s last day to subscribe, grey market indicates ₹15-₹20 premium</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/ami-organics-ipo-last-day-for-subscription-and-allotment-on-september-8/articleshow/85879032.cms">Last day to subscribe to Ami Organics IPO, issue oversubscribed by almost four times</a>

You Searched For "EPFO new rules" and got 7 results

Hurry up! 15 more days and you won't be able to withdraw your full EPF until you turn 58

BI India Bureau

Here's why the new EPF rules make good sense in the long-run

Prabhjote Gill

10 best tax-saving investments

Economic Times

Placement agencies will help hire domestic help soon

BI India Bureau

Atmanirbhar Bharat Rojgar Yojana — India's new employment scheme will cost the government ₹22,810 crore

BI India Bureau

Modi 3.0 1st Budget: Tax relief for middle class, Rs 2 lakh cr job scheme

PTI

If you contribute more than ₹2.5 lakh yearly to provident fund, it will now be taxed — All you need to know

Bhakti Makwana

Popular Keywords

Buying Guides