EPFO simplifies PF transfer process—Key change you should know
What's the story
The Employees' Provident Fund Organisation (EPFO) has simplified the process of transferring Provident Fund (PF) accounts for its members.
Earlier, the process of transferring PF money required approval from both the departing and joining EPFO offices, along with employer consent in most cases.
Now, the EPFO has done away with the requirement of employer approval for most PF transfers, making it easier for employees to manage their retirement savings while changing jobs.
Tech upgrade
Revamped Form 13 software for faster processing
To make this process easier, the EPFO has launched a revamped Form 13 software.
Once the old EPFO office approves the request to transfer PF money, it will be automatically credited to the new PF account at the new EPFO office.
This way, unnecessary delays and paperwork are avoided, making transfers quicker and smoother for all parties involved.
The move will benefit over 1.25 crore members and speed up the transfer of ₹90,000 crore of PF funds annually.
Clarity in taxation
New system distinguishes between taxable and non-taxable PF savings
The new system will offer a clear distinction between the taxable and non-taxable portions of PF savings.
This will help members know how much of their PF interest is tax-free and how much is taxable.
It also makes it easier for both employees and EPFO to calculate the correct amount of taxdeducted at source (TDS) on earned interest, minimizing chances of errors in tax calculations.
UAN generation
Bulk generation of Universal Account Numbers
EPFO has also launched a feature to bulk generate Universal Account Numbers (UANs) on the basis of available member details.
This will ensure quick and seamless crediting of Provident Fund (PF) amounts to members' accounts, even if their Aadhaar details are yet to be linked.
To protect member funds, any UANs generated this way will remain frozen until Aadhaar is linked to the account. Once added, the UANs will be fully active.