What is Employee Provident Fund scheme?
Employee Provident Fund or EPF is a savings cum retirement benefit scheme for the salaried employees. This scheme has been enacted under Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 and the regulatory body is Employees’ Provident Fund Organisation (EPFO).
Who can obtain EPF Registration?
The EPF Registration can be obtained by establishments who employs 20 or more persons. However, this registration can be obtained voluntarily by establishments having less than 20 employees.
Know how to get your EPF Registration through TaxHelpdesk
Once your EPF registration online order is placed, TaxHelpdesk’s dedicated team for reviewing of documents will check the documents uploaded by you within 24 working hours. After reviewing documents, a Tax Expert will be assigned and your order will be processed. Apart from this, you also will be able to check the status of the order in your assigned account.
Step wise procedure to obtain EPF Registration
An EPF registration can be obtained by following simple steps:
UAN (Universal Account Number)
On approval of registration of the establishment in EPFO Portal, it updates the KYC documentation of its employees by generating an Universal Account Number (UAN). UAN is a 12 digits unique number allotted to each EPF member. This number can be used by to claim PF fund, transfer of PF fund online to the bank account, etc. This UAN is to be activated by the employee himself.
Amount of contribution to EPF
The employer has to contribute 12% of the (Basic Salary + Dearness Allowance + Retaining Allowance). An equal amount of contribution is to be made by the employee. However, if the establishment has engaged less than 20 employees, then as per EPFO rules, the contribution rate for both the employees and the employer is limited to 10%.
Format of EPF Number
Documents required for EPF Registration
– Details of the name of the establishment
– Address of the establishment
– NOC from the landlord, where the establishment is situated
– Date of incorporation of establishment
– If establishment is a factory, then details such as License Number, Date of License and Place of issue of license to be provided
– If the establishment in MSME, then details of MSME registration to be provided.
– List of directors, in case of company
– List of partners, in case of partnership firm
– PAN Card copy of Owners/Partners/Directors/Proprietor, as the case may be
– Aadhaar Card copy of Owners/Partners/Directors/Proprietor, as the case may be
– DSC of Owners/Partners/Directors/Proprietor, as the case may be
– List of employees with their details
– Details of Contact Person (eg., manager)
Benefits of EPF Registration
– Tax benefit can be claimed under Section 80C of the Income Tax Act
– Secures the retirement of the salaried individual
– UAN makes it easy to manage PF fund even if employee changes his job
– Upto 90% of the PF amount can be withdrawn at the time of emergency
– Helps in preparing for future
The employee can voluntarily pay above 12% of basic pay and this is called Voluntary Provident Fund. However, if the amount of contribution is above Rs. 2.5 lacs in a year, then it shall be subjected to tax.
EPF return filing can be withdrawn in either of the below cases:
– At the time of retirement (On or after 58 years of age)
– If unemployed for two months of time
– Death before the specified retirement age
Tax is imposed when the PF balance is withdrawn without having been completed 5 years of continuous service. If the employee switches his job to another organisation without completing 5 years in the former organisation and he transfers his EPF returns balance on the new employer, then no tax shall be deducted.