EPF simplified

Employees’ provident fund, a government scheme introduced exclusively for building a retirement fund for the salaried class.

While few of us get irked by this mandatory deduction, most of us wish to withdraw it when we fall short of money… But, all of us have queries about it.

So, here we are with answers to some of the most frequently asked questions about EPF:

1. Can I withdraw my EPF?

• Yes, EPF balance can be withdrawn, however it is restrictive. Partial withdrawal is allowed for specified purposes like purchase of residence, medical treatment etc and full withdrawal is permitted only on leaving a company or migrating from India.

2. If I withdraw EPF, is it taxable?

• Yes, if the entire balance in an EPF account is withdrawn at any time before rendering 5 years of continuous service (i.e worked for one employer without break), then the amount received will be taxable.

3. I am changing employment. Should I transfer my PF account?

• No, on change in employment, the EPF account would get automatically transferred by submitting required information to the new employer.

4. How much interest will I get on PF?

• Current interest rate on EPF balance is 8.65% and is calculated on the monthly running balance. (However, the interest rate changes every year with a government notification).

5. How to find my PF number?

• EPF number, also called Universal Account Number (UAN), can be inquired from the HR or payroll department. Alternatively, it can be obtained from EPF website by filling in a few personal details.

6. Where can I check my PF balance?

• EPF balance can be checked online on https://epfindia.gov.in by using the Universal Account Number (UAN).

Got more queries on EPF or want to know future balance of your fund, just ping Friday.