The central government is preparing for a big change in the Employees’ Provident Fund Organization (EPFO). According to sources, as per the draft of EPFO 3.0, there is a consideration on giving employees the facility to withdraw PF funds directly from the ATM. It is believed that this facility can start from June next year, but only a fixed amount can be withdrawn through this. This will ensure that the employee will be able to withdraw money for emergency, but even after retirement, sufficient amount will be ensured in the account. At the same time, there is also a consideration to increase the current 12% contribution by the employee in EPF. Currently, the employee contributes 12% of his basic salary, dearness allowance and retaining allowance, in which 8.33% salary goes to the pension fund and 3.67% to EPF. Employees can also increase their contribution in the pension scheme. 75% of their PF can be withdrawn after one month of job loss. As per the PF withdrawal rules, if a member loses his job, he can withdraw 75% of his PF account after one month. This will help him fulfil his needs during unemployment. The remaining 25% of the PF deposited in the PF can be withdrawn after two months of job loss. PF withdrawal income tax rules. If an employee completes 5 years of service in a company and withdraws his PF, he does not have any income tax liability. The 5-year period can be combined with one or more companies. It is not necessary to complete 5 years in a single company. The total period must be at least 5 years. If an employee withdraws more than Rs 50,000 from his PF account before completing 5 years in service, he will have to pay 10% TDS. On the other hand, if you do not have a PAN card, then you will have to pay 30% TDS. However, if the employee submits Form 15G/15H, then no TDS is deducted. ——————————————————- Also read this news related to utility One company will be able to provide all insurance covers, unified license may get approval in the current session of Parliament The government is planning to amend the insurance laws in the current session of Parliament. According to officials, mainly two changes are proposed. Unified license for insurance companies and increasing the limit of foreign direct investment (FDI) in this sector from the current 74% to 100%. If these changes are made, the reach of insurance in the country will increase. According to research firm Swiss Re Institute, the reach of insurance in India is just 3.8% right now. Unified license is a composite license. This will allow a single company to offer life, general and health insurance products. Read full news
