The employees’ provident fund scheme provides an array of benefits towards the EPF employee members. It inculcates a sense of financial stability and security in them.
Below is a list of benefits that an EPF employee member can avail through the said scheme –
Capital appreciation – PF online scheme will provide a pre-fixed interest on the deposit held with the EPF India. Additionally, rewards extended at maturity will further ensure growth in the employees’ funds and in turn, accelerate capital appreciation.
Corpus for Retirement – Around 8.33% of an employer’s contribution is directed towards the Employee Pension Scheme. In the long run, the amount deposited in the employee provident fund will help in building a healthy retirement corpus. Such a corpus develops a sense of financial security and independence to them after retirement.
Emergency Corpus – Uncertainties are a part and parcel of life. Thus, the best thing an individual can do to deal with exigencies is to be financially prepared to face such unwarranted situations. When an individual requires emergency funds, an EPF fund can function as an emergency corpus.
Tax-saving – Under Section 80C of the Indian Income Tax Act, an employee’s contribution towards their PF account is considered eligible for tax exemption. Moreover, any income generated through the EPF scheme is exempted from taxes. Such exemption can be availed for amounts up to a limit of Rs. 1.5 Lakh.
The tax benefits that are applicable to the Employees Provident Fund scheme ensure higher earnings to the members. Moreover, it improves savings and also an individual’s purchasing power in the long-term.
Easy premature withdrawal – Members of EPF India are qualified to avail benefits of partial withdrawal. Individuals will also be able to withdraw funds from their PF account in order to meet their specific requirements such as pursuing higher education, constructing a house, paying wedding expenses or for availing medical treatment.
Process of EPF withdrawal
EPF India members can withdraw EPF by submitting a withdrawal application either through offline or through EPF online portal.
For offline submission –
- Either the ‘new composite claim form’ or a ‘composite claim form” must be filled by the individual and should submit the same to the EPFO office under their jurisdiction.
- A composite claim form should also be attested by their employer.
For online submission –
- Individuals must possess an active Universal Account Number (UAN).
- The mobile number which is used for activating the UAN should also be active.
- The UAN should be linked with Aadhaar. They should also have their PAN and respective bank details along with its IFSC code.
- Once all the prerequisites are in place, they should then need to login into the UAN online portal.
- Individuals must verify their KYC details and must proceed as per instructions.
As Employee Provident Fund is a retirement-oriented scheme, the primary aim of it is to enable individuals to become financially prepared for their retired life. This being said, individuals must avoid unnecessary premature withdrawal.