But increase in the statutory contribution will boost retirement corpus
The online application of such claims would enable EPFO to eventually settle those within three days.
The employers often split wages into different allowances to reduce their PF liability and also increase the take home pay of their workers.
Notices have been issued to the company for penal damages.
rediffGURU and financial planning expert Colonel Sanjeev Govila (retd) answers your personal finance-related questions.
The objective behind the move is to "retain the membership of PF subscribers and to address the social security needs at the time of unemployment."
At present, someone short of the retirement age can completely withdraw the PF money.
The government had introduced the proposal to deduct TDS on PF withdrawals in order to discourage pre-mature withdrawal and to promote long term savings.
The facility for viewing PF accounts online was launched here by Labour Minister Sis Ram Ola in the presence of Minister of State for Labour and Employment Kodikunnil Suresh and EPFO's Central Provident Fund Commissioner K K Jalan.
The party said it is "considering opposing" the proposal for taxing the PF corpus in Parliament.
Employees joining companies after August and availing of the government benefits under the Pradhan Mantri Rojgar Protsahan Yojana (PMRPY) will also have to link their PF accounts with Aadhaar numbers.
'The government should come back as a job creator as it did in the 1960s and the 1970s.'
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Retirement fund body EPFO is all set to start online transfer of provident fund accounts in the first fortnight of October, a move that will benefit over 13 lakh applicants every year.
A remarkable story which helped in transforming a bureaucratic organization, to a customer centric organization. This experience may inspire several government / private organizations to modify or adopt digitisation to transform their business, notes Professor N Ravichandran (retd).
At present, the EPF subscribers are exempted from paying income tax on deposits.
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Taking the first step towards launch of online PF transfer claim facilities, retirement fund body EPFO has unveiled the revised transfer claim form for the purpose.
In a placatory move, the labour ministry also said it was contemplating permitting withdrawal of all accumulations by Employees' Provident Fund Organisation's subscribers on grounds like purchase of house, serious illness, marriage and professional education of children.
The filing of online provident fund accounts transfer claims on changing jobs for subscribers of the retirement fund body EPFO has become a reality now.
The 8.1 per cent interest rate was recommended by the Central Board of Trustees after its meeting in Guwahati under the chairmanship of Union Labour and Employment Minister Bhupendra Yadav, a labour ministry press statement said.
Come March 2013, salaried employees will be able to switch jobs, without worrying about withdrawing or transferring their savings with the Employees Provident Fund Organisation (EPFO).
Keep transferring the account, as unclaimed amount will not earn interest after three years.
President Droupadi Murmu conferred 26 Shaurya Chakras (seven posthumous) to personnel of the armed forces, Central Armed Police Forces and state/Union Territory Police during a defence investiture ceremony.
The rest 25% would be paid to the subscriber at the age of 58.
The government has reduced the stipulated period for settlement of various claims like PF withdrawal, pension and insurance by the retirement fund body EPFO to 20 days from the existing 30 days.
It is not advisable to touch retirement corpus if property is being purchased for investment.
The members of these trusts enjoy tax and other benefits at par with EPFO subscribers.
The meeting has been called as the Finance Minister P Chidambaram did not extend a March 31 deadline for the trusts to get regular tax exemption through the Employees' Provident Fund Organisation.
Want to know how to claim tax deduction on property income you earn? Do you know how to withdraw unclaimed EPF money?
The CPI-backed AITUC has proposed to Prime Minister Manmohan Singh to utilise pension funds and employees provident fund for infrastructure development instead of investment in the speculative capital markets.
EPFO had approached the finance ministry for help, which advised it to go through the legal procedure.
At present, organised sector workers covered under social security schemes run by EPFO are exempted from contribution towards schemes.
The apex court gave the direction while hearing the petition filed by Nahar Singh Yadav, secretary of the Ghaziabad Bar Association, in this regard.
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