The Employees’ Provident Fund Organisation (EPFO) has come with major changes, which simplifies the transfer process of PF accounts. The transfer of PF accounts is generally needed when an employee changes his/her job. The EPFO, in recent time, is trying to enhance the ease of living for its members.
This time, the EPFO has brought changes in Form 13, eliminating the need to involve two EPF Offices, when transferring PF accumulations.
Prior to this, PF accumulations’ transfer needed approval from two EPF Offices, the Source Office (where the PF is transferred from) and the Destination Office (where the PF is transferred to). However, with the new rules in play, now the approval requirement from the Destination Office is removed, in most cases.
As the Form 13 software functionality has been revamped, members only have to get approved their transfer claim at the source office, following which their existing account will automatically be transferred to the current account at the new office.
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What Else Changes?
The new rules also provide a clear bifurcation of taxable and non-taxable components of PF accumulations. This will ensure accurate calculation of TDS on taxable PF interest, which will benefit over 1.25 crore members. The move will also facilitate the transfer of approximately Rs 90,000 crores every year.
The EPFO has also relaxed Aadhaar requirements for generating UANs and crediting past accumulations for certain members. This includes those with exempted PF trusts and ongoing legal proceedings. Furthemore, the EPFO has introduced a new software, which has the feature that allows bulk UAN generation using Member ID and other details. However, these UANs will remain frozen until Aadhaar verification is completed.
