EPF recommended 8.8% rate of interest for the year 2015-16

Insurance Benefits for Dependants of EPF Members Raised from Rs 3,60,000 to Rs 6,00,000

Press Information Bureau
Government of India
Ministry of Labour & Employment
16-September-2015 18:24 IST

208th Meeting of the Central Board (EPF) held in Hyderabad Insurance Benefits for Dependants of EPF Members Raised from Rs 3,60,000 to Rs 6,00,000

The 208th meeting of the Central Board of Trustees (EPF) was held in Hyderabad today under the chairmanship of Shri Bandaru Dattatreya, Union Minister for Labour & Employment & Chairman, CBT, EPF.

Government plans radical changes in EPF law

Sidhartha, TNN | Mar 13, 2015

The Centre is now trying to reintroduce the proposal, which will result in higher transfer to the provident fund but will reduce the take home salary.

NEW DELHI: 

The government is looking at sweeping changes to the law governing Employees Provident Fund (EPF) and has suggested doing away with the mandatory 12% contribution by employees in certain cases, while retaining the outgo for employers.

TDS on Pre-mature EPF withdrawals Proposed @10% wef 01.06.2015

Under the Employees Provident Fund and Miscellaneous Provisions Act, 1952 (EPF & MP Act, 1952), certain specified employers are required to comply with the Employees Provident Fund Scheme, 1952 (EPFS). However, these employers are also permitted to establish and manage their own private provident fund (PF) scheme subject to fulfillment of certain conditions.

The provident funds established under a scheme framed under EPF & MP Act, 1952 or Provident Fund exempted under section 17 of the said Act and recognised under the Income-tax Act are termed as Recognised Provident fund (RPF) under the Act. The provisions relating to RPF are contained in Part A of the Fourth Schedule (Schedule IV-A) of the Act. Under the existing provisions of rule 8 of Schedule IV-A of the Act, the withdrawal of accumulated balance by an employee from the RPF is exempt from taxation.

However, in order to discourage pre-mature withdrawal and to promote long term savings, it has been provided that such withdrawal shall be taxable if the employee makes withdrawal before continuous service of five years (other than the cases of termination due to ill health, closure of business, etc.) and does not opt for transfer of accumulated balance to new employer.