Employee Provident Fund
EPF is a scheme for the Indian Employees that is managed by the Provident Funds and Miscellaneous Provisions Act, 1952. The Employee Provident Fund is initiated under the umbrella of Employees Provident Fund Organization popularly called as EPFO.
About EPF
All establishments that have employed 20 or more than 20 employees can apply for PF registration in India. In some cases subject to the circumstances and the exemption establishments employing less than 20 are still eligible for PF registration. The Employee gets an amount that includes the self and employer’s contribution with interest on retirement or resignation. The EPF stands tall in terms of returns from a debt instrument. The money is sovereign backed and the interest earned is tax-free. The PF enjoys EEE (exempt, exempt, exempt) status as contributions are deductible from the income. Hardly any debt instruments provide such high returns with safety and assurance. Hence, it is better to transfer the PF account at the time of switching jobs and also avoid the temptation to withdraw the money.
Benefits Of EPF Registration
Tax saving scheme
The interest income and the investment amount are exempt from tax. The amount expanded, also remains tax-free if withdrawn after accomplishment of 5 years.
Capital appreciation
The Government of India affixes the interest rate of this scheme. The contribution to this fund happens monthly. Thus, it is not overload to the employee to make a lump sum investment at once.
Retirement corpus
In the long run, this scheme helps to construct a sufficient retirement corpus. This corpus helps the reclusive employee to have a sense of financial safeguard and self-determination.
Financial Emergency
This accumulated fund can be used for any unexpected events that proceed in life. The employee can partially withdraw from this fund for any exceptional matters.
Unemployment
If the employee loses his job, this fund can be used to face his expenses. One can withdraw 75% of the accumulated fund after one month of unemployment. The rest 25% of the fund can be withdrawn after two months of unemployment.
Easy Access
The Universal Account Number (UAN) delivers quick access to the employees to their PF account via the EPF member portal. They can transmit their PF account whenever they alter jobs.
DOCUMENTS REQUIRED FOR EPF REGISTRATION
PAN CARD
- Partners/ Director And Business Entity
CANCELLED
CHEQUE
- It Is Required For Authenication
OTHER
DOCUMENTS
- COI-In case Of Company
- Partnership Deed- In case Of Firm
ADDRESS PROOF
- Electricity Bill
- Water Bill
- Rant Agreement
- Telephone Bill
DIGITAL
SIGNATURE
OF ANY DIRECTOR
- It Will be Affixed On th
- Application Form
REGISTRATION
CERTIFICATE
- COI
- GST Certificate
- Shopex