Payment of EPF to the Employees of a liquidated company

Payment of EPF to the Employees of a liquidated company.

Employees of a liquidated company can file their claim for provident fund, duly attested by any of the following authorized persons: 

 Member of Parliament; 

 Member of Legislative Assembly; 

 Magistrate; 

 A Gazetted Officer; 

 Sarpanch of the Village; 

 Manager of the Bank in which the Bank Account of the claimant is maintained; and

 Notary Public, etc. 

As per the provisions contained in the Employees’ Provident Funds Scheme, 1952, claims of a member, completed in all respect, is to be settled within 30 days of its receipt in the office Employees’ Provident Fund Organisation (EPFO). 

This information was given by the Union Labour & Employment Minister Shri Mallikarjun Kharge in reply to a written question in the Lok Sabha today.

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Withdrawal of PF by International Workers

Withdrawal of PF by International Workers

In accordance with amended para 69 (under para 83 of Employees’ Provident Fund Scheme, 1952), an International Worker is allowed to withdraw the full amount standing to his credit in the fund: 

• on retirement from service in the establishment at any time after attaining the age of 58 years; 

• on retirement on account of permanent and total incapacity for work due to bodily or mental infirmity duly certified by the medical officer; 

• In respect of a member covered under a Social Security Agreement entered into between the Government of India and any other country, on such grounds as may be specified in that agreement. 

The provisions of Inoperative accounts are not applicable in respect of International Workers. 

This information was given by the Union Minister for Labour & Employment Shri Mallikarjun Kharge in reply to a written question in the Lok Sabha today.

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Track your PF account on web in 3 months

A circular was issued on May 24, asking all regional offices to complete updating of 2008-09 accounts by May 31, and that of 2009-10 by June 30, say reports.

There is some good news for more than 47mn subscribers to the Central Government's Employee Provident Fund scheme. You will soon be able to keep a close tab on your PF account on the Internet, according to reports.

The Employees' Provident Fund Organization (EPFO) has reportedly posted the details of the accounts' status of all its 120 offices on its website.

A circular was issued on May 24, asking all regional offices to complete updating of 2008-09 accounts by May 31, and that of 2009-10 by June 30, say reports.

The EPFO's move to put in place a software for updating accounts annually across its 120 offices will help it meet the Finance Ministry's goal of updating all pending accounts by September.

In March this year, the Finance Ministry had approved the 9.5% interest rate announced by the EPFO for its 47.2mn subscribers for FY 2010-11 on the condition that it would update the pending accounts within six months.

The EPFO has updated 28.7mn accounts since then, according to reports.

The EPFO handles a corpus of about Rs. 3.5 lakh crore annually.

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Employee Provident Fund (EPF) : Retire as a Crorepati

We normally hate any kind of deductions in our monthly salary slips – either its income tax deduction , professional tax deduction or even an EPF deduction.Very few of us really know that this small EPF deduction each year can in reality make you a crorepati by the time you retire. Encouraging fact is that this statement is applicable to even with those having modest salaries. There’s many if’s and but’s to achieve that , most notably being resisting the temptation to withdraw money till retirement.

12% of your basic salary that gets deducted as part of EPF account every month has a potential to make you a crorepati by the time you retire. Most of us are of view that investment is so small and interest rate offered is nothing special. Power of compounding clubbed with a matching contribution from your employer every month can do wonders for you.

Encouraging stats : 8.5% interest earned on the EPF can help a person with a basic salary of 25,000 a month accumulate a mammoth 2.4 crore in 35 years. Sounds unbelievable.

Hard fact : A very few people are able to reach even 1 crore milestone in their careers.

Good news is that the initial draft of Direct Tax Code has proposed that new contribution to EPF be taxed on withdrawal. However , the revised draft has made EPF fully tax exempt making it once again one of the best debt option available in the market.

Try not to touch your EPF account till you hang your boots. You may have to use it during acute emergencies but other than that avoid poking into this account while you are working. Its not uncommon of people to withdraw their PF at the stage. Government discourages you to withdraw money as withdrawals from EPF within five years of joining are taxable. Early withdrawal don’t allow power of compounding to come to play.

Lesson for everyone – Do not withdraw money from EPF while switching jobs , one should transfer the balance to the new account with the new employer. Remember , this do not happen automatically. You need to fill a ‘Form 13′ and deposit it with the EPFO. Make this one of your first TODO’s things at new workplace as with course of time you will loose track of it and also get pre-occupied at new job.

EPFO in addition is coming up with a software enabling online transfer of money from old account to new account. This will reduce both the paperwork and time taken for transaction.

source:http://www.investment-mantra.in/?p=938

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