FAQ's
Expert solutions for your
complex tax issues.
Tailored advice and strategies to resolve your most
complex tax challenges..
Provident Fund
What is the Provident Fund (PF)?
The Provident Fund (PF) is a retirement savings scheme for employees, managed by the Employees' Provident Fund Organisation (EPFO). Both employers and employees contribute to this fund to provide financial security after retirement or in emergencies.
Who is eligible for PF?
Employees earning a basic salary of up to ₹15,000 per month are mandatorily covered under the EPF scheme. However, employees earning above ₹15,000 can voluntarily join the scheme with employer consent.
What is the contribution rate for PF?
- Employee Contribution: 12% of basic salary and dearness allowance.
- Employer Contribution: 12%, split as:
- 8.33% to the Employee Pension Scheme (EPS).
- 3.67% to the EPF account.
Can employees withdraw PF before retirement?
Yes, partial withdrawals are allowed for specific purposes like:
- Marriage or education.
- Medical emergencies.
- Housing loan or purchase of a house.
- Unemployment (75% withdrawal after one month; balance 25% after two months of unemployment).
Full withdrawal is allowed upon retirement or if unemployed for over 2 months.
How can employees check their PF balance?
Employees can check their PF balance via:
- 1. UMANG App: Download the app and log in with your UAN.
- 2. EPFO Portal: Log in to epfindia.gov.in.
- 3. SMS/Call: Send an SMS with EPFOHO UAN to 7738299899 or call the toll-free number 1800-118-005.
What is the UAN in PF?
The Universal Account Number (UAN) is a unique 12-digit number assigned to each employee. It links all PF accounts of an employee across multiple organizations, ensuring easy management of their PF funds.
What happens to the PF account after leaving a job?
The PF account remains active and can be transferred to a new employer using the UAN. If left inactive, the account earns interest for up to 3 years, after which it becomes dormant.
Is PF withdrawal taxable?
PF withdrawal is tax-free if:
- 1. The employee has completed 5 years of continuous service.
- 2. The withdrawal is less than ₹50,000.
For withdrawals before 5 years, TDS at 10% is applicable if the amount exceeds ₹50,000.
How to transfer a PF account?
You can transfer your PF account online via the EPFO Portal under the 'Online Services > One Member - One EPF Account (Transfer Request)' option.
What happens if an employer doesn’t deposit PF?
Non-deposit of PF by an employer is a violation of the EPF Act and can result in:
- 1. Penalties and interest on unpaid amounts.
- 2. Legal action by EPFO.
How It Works
Simplifying Taxes, Empowering Finances Everywhere
Your trusted partner for seamless tax and financial solutions. We simplify tax filing, maximize returns, and provide expert advice with accuracy and care.
Browse Experts
Explore our verified profiles of CAs, CSs, and Advocates.
Book a Consultation
Schedule an online meeting that fits
your timeline.
Get Solutions
Receive actionable advice and services customized for you.
Experience the Taxoday Advantage
Join thousands of users simplifying their tax and legal journeys. Say goodbye to the hassle and hello to ease with Taxoday.