Latest news with #EmployeesProvidentFundOrganisation
Hans India
15-06-2025
- Business
- Hans India
EPFO official arrested by CBI for taking Rs 10K bribe
Bhubaneswar: An official of the Employees Provident Fund Organisation (EPFO) was arrested by the CBI for taking a bribe of Rs 10,000 from a chartered accountant for approving applications about two companies, an official said on Saturday. Anil Rath, Senior Social Security Assistant (SSSA), EPFO Regional Office, Berhampur, was allegedly harassing the complainant by delaying the approval, the official said. A case was registered by the CBI on June 12 against Rath on the basis of a complaint filed by Suraj Kumar Dash. He was booked for the offence of demanding undue advantage/bribe by a public servant under the Prevention of Corruption Act and criminal conspiracy under the Bharatiya Nyaya Sanhita (BNS). Rath allegedly demanded a bribe of Rs 10,000 from the complainant to approve the Authorised Signatory Application of two employers -- Jai Jagannath Infratech and Uttam Padhi, on the EPFO Portal. Dash said the application was repeatedly rejected by Rath between March and May on the grounds of incomplete documentation. 'I visited the EPFO (Regional Office, Berhampur) again on June 11 to find out the reason why the application is under process where PRO Anil Rath demanded Rs 10,000 (for two employers at the rate of Rs 5,000 per company) to approve the Authorised Signatory Application,' said Dash in his complaint. After negotiation, the accused agreed to accept a bribe of Rs 10,000 from the complainant, the CBI said. On receiving a complaint from Dash, CBI, ACB, Bhubaneswar verified it on June 12.
Time of India
09-06-2025
- Business
- Time of India
EPF 3.0: Withdraw PF by swiping from ATMs
Theoretically, the money lying in our provident fund, or PF, account, is touted as our safest asset class, not subject to any attachment or lien or any market volatility. Practically, though, the very idea of taking out this money makes us fret, courtesy the cumbersome process of making claims for PF withdrawal and the associated long waiting periods for requisite approvals from the Employees Provident Fund Organisation (EPFO). However, the situation is going to change as the EPFO is rolling out its upgraded platform EPFO 3.0, most likely in June, for its 9 crore members. EPF members will be able to take out their PF money instantaneously via ATMs, just like from bank accounts, simply by swiping their PF withdrawal (ATM) cards. For such withdrawals, the members will need to keep their Universal Account Number (UAN) activated and seed their Aadhaar in their bank accounts. The EPFO has extended the last date for activating UAN and Aadhaar seeding in bank accounts to June 30. Currently, for PF withdrawals, EPF members are required to fill their online composite forms on the EPFO website. Though the specified period for settling such composite claim forms by the EPFO is 20 days, in reality, it takes much longer to get one's PF money. With the upcoming UPI integration and withdrawal facility via ATMs, PF withdrawal settlement is set to become swift and hassle-free. The withdrawal limit is expected to be kept at Rs.1 lakh or 50% of the accumulated balance. However, an official notification from the EPFO in this regard is still awaited. Pull-out provisions Live Events Withdrawal from EFP account is permitted for multiple purposes, albeit under certain conditions and till a specified limit. Here are some common instances of taking out PF money. This well-intended reform of enabling PF withdrawals via ATMs is revolutionary indeed. However, the practical implementation of this enabling functionality will be subject to the fulfilment of existing prescribed conditions for partial and full withdrawal of PF money by members. According to the scheme of the Employees Provident Fund & Miscellaneous Provisions (EPFO) Act, 1952, EPF members can withdraw their entire balance of fund contributions at the time of retirement from service. The rules also permit partial withdrawals by EPF members during the continuity of their service, for certain specified purposes and subject to the fulfilment of prescribed conditions. For a bird's eye view of the same, refer to the graphic. Tax implications This watershed moment in PF reforms may have its fair share of tax implications too, with which everyone must be acquainted. Unlike bank balance withdrawals, not all EPF withdrawals via ATMs will be tax free. According to Rules 8 and 9 of Part A of the Fourth Schedule to the Income Tax Act, withdrawals are tax-free only if they are made out of recognised EPF accounts and after rendering continuous service of five or more years with one or more employers. Paradoxically, the current time-consuming and tedious process of submitting claims to take out money, and getting approvals, inherently acts as a disincentive or a deterrent for EPF members from making frequent and early withdrawals. Given the practical difficulties, EPF members usually prefer to wait till retirement to withdraw their funds. However, the upcoming EPFO 3.0 facility for withdrawals via ATMs is naturally going to tempt EPF members to take money out of their PF account, more frequently and much before the completion of five years of continuous service. This, in turn, will make such withdrawals taxable at the applicable slab rates of the concerned EPF members, as per the provisions of the Income Tax Act. TDS on early withdrawals Another practical consideration to be mindful of while taking out PF money from ATMs will be the applicability of tax deducted at source (TDS) provisions. Any PF withdrawal via ATMs in excess of Rs.50,000 before completion of five years of service will require TDS at 10%, as per Section 192A of the Income Tax Act on premature withdrawals. Thus, the tempting urge of withdrawing one's PF money by just a swipe of the card needs a cautious and well-informed restraint. Provident fund money is our retirement corpus, so we should swipe it carefully. The author is founder, Taxaaram India and Partner, S M Mohanka & Associates
Time of India
08-06-2025
- Time of India
EPFO promise turns into nightmare: Retired Mumbai man duped of Rs 1.4 crore over 1.5 years by fake CBI and PF officials; probe on
Representative image MUMBAI: A former state govt employee was cheated of Rs 1.4 crore by cyber scammers who first led him to believe that he was interacting with a provident fund (PF) official and then scared him into thinking the official was arrested by the CBI. The 73-year-old complainant made payments for 1.5 years before realising that he had been taken for a ride and the documents sent to him were bogus. The west cyber police have registered an FIR and are investigating further. The complainant lives in Andheri with his family. In May 2023, he got a phone call purportedly from the Employees Provident Fund Organisation (EPFO), New Delhi. The caller introduced himself as Alok Mehta. He told the complainant his PF dues were pending with the organisation and he could claim them once he paid Rs 7,230 as security charges. After the complainant paid the money, Mehta sent him a letter purportedly from the ministry of finance over WhatsApp. The letter had a govt of India seal on it and the complainant was convinced of its authenticity. The document said he would receive Rs 63.08 lakh if he made a payment of Rs 3.8 lakh. Over the next 10 months, Mehta and two other "EPFO representatives" Sunita Tiwari and one Chakraborty stayed in touch with the complainant and got him to pay Rs 60 lakh under various pretexts. In March 2024, the complainant got a phone call from one Mahi Sharma who claimed to be an officer with the CBI's Mumbai office. She said Mehta had been arrested by the CBI for misappropriation of funds and the complainant's PF file had now come to the CBI for scrutiny. The complainant was left shaken. Sharma assured him his PF dues would be paid to him once she completed a thorough probe into his case. Subsequently, she sent him a cheque of his PF dues, but warned him to pay 30% as taxes. She also asked for charges towards issuing him a no-objection certificate as his PF dues were exceeding a crore. The complainant kept making payments as instructed by Sharma till Nov 2024. When he presented the cheque for encashing, he was told it was counterfeit. He approached cops. Police filed an FIR on May 28 and will probe who operated the bank accounts into which the funds were transferred.
Mint
06-06-2025
- Business
- Mint
Deadline alert! Link aadhaar to bank account before June 30: EPFO to beneficiaries of ELI scheme
The Employees Provident Fund Organisation (EPFO) has once again extended the deadline for UAN (Universal Account Number) activation and seeding of bank accounts with aadhaar for those subscribers who want to avail the benefits under ELI scheme. 'The competent authority has granted an extension of timeline for UAN activation and aadhaar seeding in bank Account till June 30, 2025,' reads the circular. It is noteworthy to mention that these deadlines have been extended several times in the past. The first circular was issued on November 22, 2024 and the deadline was November 30, 2024. 'Since, the benefits under ELI Scheme, will be disbursed through DBT to eligible employees, Employers are urged to ensure UAN activation and AADHAAR seeding in Bank Account in respect of all their employees who have joined in the current financial year, starting with the latest joinees. The concerned EPFO offices may kindly be contacted for necessary guidance in this matter, if required,' the circular dated Nov 22, 2024 had stated. Later, the deadline of November 30 witnessed several extensions through follow up circulars which were issued on Dec 4, Dec 12, Feb 6, Feb 21 and March 3. Finally the latest circular was issued on May 30, 2025 which extended the deadline to June 30. This is Employment Linked Incentive scheme which was announced in Budget 2024-25 – and to make sure that all eligible employees can avail it, it was made mandatory to activate UAN and seed aadhaar in the bank account of each employee. The ELI scheme was launched for two sets of employees: Scheme A (first timers) and Scheme B (job creation in manufacturing). The subsidy is meant to assist employees and employers in hiring first timers. It (scheme A) is applicable to all persons newly entering the workforce (EPFO) who have less than ₹ 1 lakh per month salary. The subsidy is paid to the employees in three instalments. The directions of seeding aadhaar in bank accounts were issued in the light of directions given by the Ministry of Labour & Employment to ensure that all eligible employees can avail the Employment Linked Incentive (ELI) Scheme announced in Union Budget 2024-25. For all personal finance updates, visit here.
Mint
26-05-2025
- Business
- Mint
EPFO alert! Can transfer claims be rejected for overlapping service period? Check official clarification here
Employees Provident Fund Organisation (EPFO), the government's social security schemes manager, has clarified that an overlap in service periods cannot be a ground to reject the transfer claims of employees. The body highlighted that overlapping service periods may occur due to genuine reasons, and hence, the transfer claims, which allow members to move their provident fund balances from one employer to another when switching jobs, cannot be denied solely for this reason. In a circular dated May 20, 2025, EPFO stated, 'It has been observed that Transfer Claim requests are being rejected due to the issue of Overlap in Service Periods by the Regional Offices. However, overlapping in services can occur due to genuine reasons and therefore the same should not be considered to be a disqualification per-se in effecting transfers.' When an employee is shown to be working in two different organisations, it is termed as an overlap service period. This may occur when the last working date from one company and the joining date in another company overlap for several reasons or certain errors. Due to the latest clarification, the EPFO has provided the modalities of the Employee Pension Scheme (EPS), a monthly pension to employees for members having multiple account numbers. Consequently, the transfer claim requests will now be processed, even if there are overlapping services, without the need to return or reject them. Claims will only be processed after obtaining the necessary clarification, and solely in instances where there is a genuine need to clarify the overlap of services. 'Only in cases where a genuine need is felt to clarify the overlapping of service, would the claims be processed after obtaining the requisite clarification,' the circular stated. The recent directive is one of the key measures introduced by the EPFO with the aim to simply the transfer process. Some of the other initiatives undertaken are the digitisation of withdrawal and settlement of claims. While filing claims, employees will not be required to submit cheque leaves and bank-attested updated passbooks.
