GPF Interest Rate for 4th Quarter (2016-17) for Maharashtra State Employee.

Recently, Maharashtra Government has been announced GPF Interest Rates for 4th Quarter for Fin. Year 2016-17

It is announced for General Information that during the year 2016-2017, accumulations at the credit of subscribers to the General Provident Fund and other similar funds shall carry interest at the rate of 8% (Eight Per Cent) w.e.f. 1st January 2017 to 31st March 2017.  This rate will be in force w.e.f. 01st January 2017 as per notification dated 30th January 2017 of Maharashtra Government.

1. General Provident Fund (Madhyapradesh)
2. Patwarancha Provident Fund (Madhyapradesh)
3. Contributory Provident Fund (Madhyapradesh)
4. Compulsory Saving Scheme (Hyderabad)

Sd/-
(B.J. Gadekar)
Deputy Secretary,
Maharashtra Government

GPF Interest Rates for 4th Quarter

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6 Months GPF Interest Rate Reduced by 0.1 Percent for Fin. Year 2016-17

Recently a resolution issued about GPF Interest rate w.e.f. 01.01.2017, as per this resolution the interest rates on GPF and other similar funds are reduced by 0.1 % w.e.f. 01.01.2017 for all Central Government Employee.

(PUBLISHED IN PART I SECTION OF GAZETTE OF INDIA)

F.No.5(1)-B(PD)/2016

Government of India

Ministry of Finance

Department of Economic Affairs

(Budget Division)

New Delhi, Dated the 18th January, 2017

RESOLUTION

It is announced for general information that during the year 2016-2017, accumulations at the credit of subscribers to the General Provident Fund and other similar funds shall carry interest at the rate of 8.0% (Eight per cent) w.e.f. 1st January, 2017 to 31st March, 2017. This rate will be in force w.e.f. 1st January, 2017. The funds concerned are:-

1. The General Provident Fund (Central Services)
2. The Contributory Provident Fund (India)
3. The All India Services Provident Fund
4. The State Railway Provident Fund
5. The General Provident Fund (Defence Services)
6. The Indian Ordnance Department Provident Fund
7. The Indian Ordnance Factories Workmen’s Provident Fund.
8. The Indian Naval Dockyard Workmen’s Provident Fund
9. The Defence Services Officers Provident Fund
10. The Armed Forces Personnel Provident Fund.

2. Ordered that the Resolution be published in Gazette of India.

sd/-

(Vyasan R.)

Deputy Secretary (Budget)

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EPF Interest Rate Again Reduced from 8.8% to 8.65%

Interest on EPF balances lowered to 8.65% for 2016-17

You will get 8.65 percent interest on your Employee Provident Fund (EPF) balances for 2016-17, which is 0.15 percent points lower than what your EPF balances earned for 2015-16.

The Central Board of Trustees (CBT) of the Employees’ Provident Fund Organisation (EPFO) is understood to have arrived at 8.65 percent as the rate of interest payable for 2016-17 at its meeting in Bengaluru on Monday. The CBT is the highest decision making body of the EPFO.

The move is likely to disappoint over 4 crore members of the EPF who would have been looking forward to the CBT suggesting at least retaining the 8.8 percent rate of interest for the year. In fact, Union representatives at CBT had told Moneycontrol during the run-up to its meeting that they might press for an interest rate higher than 8.8 percent for 2016-17.

According to reports, the Finance, Investment and Audit Committee (FAIC) of EPFO has suggested 8.62 percent as the feasible rate of interest for 2016-17. The FAIC arrives at its suggestion of the feasible rate of interest for the consideration of CBT based on analysis of the balance sheet for the year under consideration.

Incidentally, the earlier suggestion by the Finance Ministry to lower the EPF interest rate for 2015-16 by 0.1 percent had met with stiff resistance and had to be eventually rolled back.

The lowering of EPF rate comes in the wake of general lowering interest rates in the system including that of other small savings schemes. The government had in September announced a reduction in the interest rates on small savings schemes by 0.1 percent for the October-December quarter of 2016-17.

Thus, the interest rate on PPF was reduced to 8 percent in the third quarter of the current fiscal as against 8.1 percent in the previous three months period, while the rate on Kisan Vikas Patra was brought down to 7.7 percent from 7.8 percent resulting in KVP now maturing in 112 months instead of 110 months.

Source: www.moneycontrol.com

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Important amendments in EPF Wages & others, wage ceiling increased to Rs. 15000/- w.e.f. 01.09.14

Employees' Provident Fund Organization (Ministry of Labour, Govt. of India) has issued a notification dated 28.08.2014 regarding increase of wage ceiling from existing Rs. 6,500/- to Rs. 15,000/- w.e.f. 01.09.2014, fixing minimum pension of Rs, 1000/- per month and 20% additional relief on the amount of assurance benefit admissible under EDL1 Scheme, 1976. The said effects' notifications are as under.

MINISTRY OF LABOUR AND EMPLOYMENT

NOTIFICATION

New Delhi, the 22nd August, 2014

G.S.R. 608 (E).—In exercise of the powers conferred by section 5 read with Sub-section(1) of Section 7 of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952 (19 of 1952), the Central Government hereby-makes the following Scheme, further to amend the Employees' Provident Funds Scheme. 1952, namely:-

I (1) This Scheme may be called the Employees' Provident Funds (Amendment) Scheme, 2014.

  (2) It shall come into force on and from the Ist day of September, 2014.

2. In the Employees' Provident Funds Scheme, 1952,-

   (a) in paragraph 2, in clause (1), in sub-clause (ii), for the words "six thousand and five hundred rupees", the words " fifteen thousand rupees" shall be substituted;

   (b) in paragraph 26. in sub- paragraph (6), for the words "six thousand and five hundred rupees'`. the words "fifteen thousand rupees" shall be substituted;

   (c) in paragraph 26A, in sub-paragraph (2), in the proviso, for the words "six thousand and five hundred rupees", wherever they occur, the words "fifteen thousand rupees" shall be substituted.

[F. No. S-35012/112012-SS.11]

ARUN KUMAR SINHA. Addl. Secy,

NOTIFICATION

New Delhi, the 22nd August, 2014

509(E),— In exercise of powers conferred by section 6A read with sub-section (1) of section 7 of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952 (19 of 1952), the Central Government hereby makes the following Scheme further to amend the Employees' Pension Scheme, 1995. namely:—

I, (1) This Scheme may be called the Employees' Pension (Amendment) Scheme, 2014.

   (2) It shall come into force on and from the 1stday of September, 2014.

2, In the Employees' Pension Scheme, 1995, (hereinafter referred to as the principal Scheme). in paragraph 3, in  sub-paragraph 2, in the proviso, for the words "rupees six thousand and five hundred", wherever they occur, !he words "fifteen thousand rupees" shall be substituted.

3. In the principal Scheme, in paragraph 6, in clause (a), after the words. figures and letter "or 27A of the  Employees' Provident Funds Scheme, L952", the words "and whose pay on such dare is less than or equal to fifteen thousand rupees", shall be inserted.

4. In the principal Scheme, in paragraph It,-

  (a) for sub-paragraph (1) and the proviso thereto, the following shall be substituted, namely:-

      11) The pensionable salary shall be the average monthly pay drawn in any manner including on piece rale basis during contributory period of service in the span of sixty months preceding the date of exit from the membership of the Pension Fund and the pensionable salary shall be determined on pro-rata basis for the pensionable service up to the V' day of September, 2014, subject to a maximum of six thousand and five hundred rupees per month and for the period thereafter at the maximum of fifteen thousand rupees per month:

          Provided that if a member was not in receipt of fun pay during the period of sixty months preceding the day he ceased to be the member of the Pension Fund, the average of previous sixty months full pay drawn by him during the period for which contribution to the pension fund was recovered, shall be taken into account as pensionable salary, for calculating pension;

  (b) in sub-paragraph (2), for the figures and word "12 months", wherever they occur, the words -sixty months" shall be substituted;

  (c) in sub-paragraph (3),-

      (i) for the words, letters and figures "rupees six thousand and five hundred/Rs, 6500", the words "fifteen thousand rupees" shall be substituted;

      (ii) the proviso shall be omitted.

  (d) after sub-paragraph (3), the following sub-paragraph shall be inserted, namely:-

      (4) The existing members as on the 11' day of September, 2014, who at the option of the employer and employee, had been contributing on salary exceeding six thousand and five hundred rupees per month, may on a fresh option to be exercised jointly by the employer and employee continue to contribute on salary exceeding fifteen thousand rupees per month:

          Provided that the aforesaid members have to contribute at the rate of 1.16 per cent on salary exceeding fifteen thousand rupees as art additional contribution from and out of the contributions payable by the employees for each month under the provisions of the Act or the rules made thereunder:

          Provided further that the fresh option shall be exercised by the member within a period of six months from the I g day of September, 2014:

          Provided also that the period specified in the second proviso may, on sufficient cause being shown by the member, be extended by the Regional Provident Fund Commissioner for a further period not exceeding six months:

          Provided also that if no option is exercised by the member within such period (including the extended period), it shall be deemed that the member has not opted for contribution over wage ceiling and the contributions to the Pension Fund made over the wage ceiling in respect of the member shall be diverted to the Provident Fund account of the member along with interest as declared under the Employees' Provident Fund Scheme from time to time,

5. In the principal Scheme in paragraph 12, in sub-paragraph (2), the following proviso shall be inserted. namely:-

   "Provided that the members' monthly pension shall be determined on a pro-rata basis for the pensionable service up to the day of September, 2014 at the maximum pensionable salary of six thousand and live hundred rupees per month and for the period thereafter at the maximum pensionable salary of fifteen thousand rupees per month".

6, in the principal Scheme, for paragraph 14 the following paragraph shall be substituted, namely.-

   "14. Benefits on leaving service before being eligible for monthly member's pension.- if a member has not rendered the eligible service specified in sub-paragraph t I) of paragraph 12 on the date of exit, or on mining the 58 years of age, whichever is earlier, such member shall be entitled to a withdrawal benefit as laid down in Table 'V or may opt to receive the Scheme certificate provided on the date he has not attained 58 years of age:

   Provided that for calculating such withdrawal benefit, the wages at exit shall be the weighted average of his wages at the end of every wage ceiling period:

   Provided further that an existing member shall receive additional return of contributions for his past service under the Employees' Family Pension Scheme, 1971, computed as withdrawal-cum-retirement benefits as per Table 'A' multiplied by the factor given in Table '8' ".

[F.No. S-35012/1/2012-SS-111 ARUN KUIvIAR SINHA,Addl. Secy.

Note: The principal Scheme was published in the Gazette of India. Extraordinary, Part II, Section 3, Sub-section (i), vide notification number G.S.R. 748 (E), dated the 16th November, 1995 and last amended vide notification number G.S.R. 80(E) dated the 14th February, 2013.

NOTIFICATION

New Delhi, the 22nd August, 2014

G.S.R. 610 (E). —In exercise of the powers conferred by nation 6C read with sub-section (1) of section 7 of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952 (19 of 1952), the Central Government hereby makes the following scheme further to amend the Employees' Deposit-Linked Insurance Scheme,1976, namely:-

1. (l) This Scheme may be called the Employees' Deposit-Linked Insurance (Amendment) Scheme, 2014.

   (2) It shall come into force on and from the l' day of September, 2014.

2. In the Employees' Deposit-Linked Insurance Scheme, 1976 (hereinafter referred to as the principal S&me), in

   paragraph 7, in sub-paragraph (1), for the words "six thousand five hundred rupees", the words "fifteen thousand rupees" shall be substituted.

3. In the principal Scheme, in paragraph 22, in sub-paragraph (3),-

   (a) in clause (i), for the words "six thousand five hundred rupees", the words. -fifteen thousand rupees" shall be substituted;

   (b) in the Explanation, for the words "rupees six thousand five hundred", the words "fifteen thousand rupees" shall be substituted.

4. In the principal Scheme, in paragraph 22, after sub-paragraph (3), the following sub-paragraph shall be inserted, namely:-

   14) The benefit under this Scheme shall be further increased by twenty percent in addition to the benefits admissible under sub-paragraph (1), (2) or (3) of paragraph 22, as the case may be.".

[F. No. S-35012/112012-SS.111 ARUM la/IvIAR SINHA, Addl. Secy.

MINISTRY OF LABOUR AND EMPLOYMENT

NOTIFICATION

New Delhi, the 19th August, 2014,

GSA. 593 (E).— In exercise of the powers conferred by section 6A, read with sub-section (1) of section 7 of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952 (19 of 1952), the Central Government hereby makes the following Scheme further to amend the Employees' Pension Scheme,1995, namely:-

2. (1) This Scheme may be called the Employees' Pension (Second Amendment) Scheme, 2014,

   (2) It shall come into force on the 1st day of September, 2014.

       In the Employees' Pension Scheme, 1995 (hereinafter referred to as the principal Scheme), in paragraph 12, after sub-paragraph (7), the following sub-paragraph shall be inserted, namely:-

       17A) The monthly member's pension including any relief payable to any existing or future member under this paragraph shall not be less than one thousand rupees for the financial year 2014-15.".

3. In the principal Scheme, in paragraph 15, for the words, brackets and figures "sub-paragraphs (2) to (5) of paragraph 12, as the case may be,", the word and figures " paragraph i 2" shall be substituted.

4. In the principal Scheme, in paragraph 1b,-

   (a) in sub-paragraph (2), in clause (a), after sub-clause (iv), the following sub-clause shall be inserted. namely:-

       "(v) in all the cases, where the monthly widow pension including relief, if any, is less than one thousand rupees per month, the amount of monthly widow pension in such cases shall be enhanced to one thousand rupees per month for the financial year 2014-2015.";

   (b) in sub-paragraph (3), for clause (b), the following clause shall be substituted, namely:-

       "(b) Monthly children pension for each child shall be equal to 25 per cent of the amount admissible to the widow of the deceased member as monthly widow pension payable under clause (a) of sub-paragraph (2):

            Provided that the minimum monthly children pension including relief, it' any, for each child of the deceased member shall not be less than two hundred and fifty rupees per month for the financial year 2014-2015.";

   (c) in sub-paragraph (4), for clause (a), the following clause shall be substituted, namely:-

       "(a) if the deceased member is not survived by any widow, but is survived by children falling within the definition of family or if the widow pension is not payable, the children shall be entitled to a monthly orphan pension equal to 75 per cent of the amount of the monthly widow pension as payable under clause (a) of sub-paragraph (2):

            Provided that the minimum monthly orphan pension including relief, if any, for each orphan shall not be less than seven hundred and fifty rupees per month for the financial year 2014-15.",

[F. No. 11-15025/312007.SS-11/PUII ARUN KUNIAR SINHA Secy

Foot Note.- The Employees' Pension Scheme, 1995 was published in the Gazette of India vide notification number G.S.R. 748(E), dated the 16th November, 1995 and was lastly amended vide notification number G.S.R. 80(E), dated the 11th February, 2013.

Download Wages Ceiling Limit to Rs. 15000/- (Click Here)

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PPF still the best among tax-exempt instruments.

Sarita Singhal's relationship manager insisted on meeting her though she did not have any service or related complaints. In no time, the manager came to the main reason for his visit - pitching a new combo-product. His bank had specially designed the product for their 'privilege customers'.

He began by asking how she planned to invest the additional Rs 50,000 worth of deductions allowed under Section 80C from this financial year. Singhal, 40, said she wanted to put the money in the Public Provident Fund (PPF). "The manager then told me that PPF is not an attractive option. Reason: It is a market-linked product and in times to come, its returns might go down to six per cent levels. Hence, he advised investing in the bank's new product, which gives the edge of equities and insurance," the law professional says.

Many bank relationship managers and brokers are advising individuals to stay away from PPF, for it is market-linked. In 2011, the Union Finance Ministry announced that the rates for small saving instruments would be benchmarked to those of government securities (G-secs) of similar maturity periods, with a positive mark-up of 25 basis points (bps). Being market-linked, the rate of return would come down whenever there was a downward revision of interest rates.

What works

However, PPF still stands out as one of the best among the instruments giving exempt-exempt-exempt (EEE) benefits, which makes it one of the most popular investment products say financial planners. The EEE tax status means the contribution, the accumulation and the withdrawal amounts are all exempt from tax. The other EEE products are Employee Provident Fund (EPF) and life insurance in the basket of instruments that qualify for deductions under Section 80C of the Income Tax Act.

"PPF is one of the best options in the debt universe and among the EEE products. Net of tax, other debt products offer much lower return. For instance, fixed deposits' post-tax returns are in the six per cent range for someone in the highest tax bracket (State Bank of India is offering nine per cent for deposits maturing in one year to less than two years). The product that comes close to offering PPF returns will be tax-free bonds (in the secondary market) with post-tax returns of 7.50-7.90 per cent. Among the EEE products, only voluntary contribution towards EPF ranks at par with PPF," says Vishal Dhawan of Plan Ahead Wealth Advisors. In the long term (three to five years), debt funds' returns could be comparable, despite 20 per cent tax with indexation, he adds. According to data from mutual fund rating agency Value Research, medium-term to long-term gilt funds have returned a little over six per cent in the past year.

Additionally, from this financial year, individuals can invest as much as Rs 1.5 lakh as against Rs 1 lakh earlier in PPF. Both PPF and EPF currently earn 8.7 per cent return annually. The PPF rate applicable for each financial year is declared at the beginning of the year.

Problem areas

The product does have negatives. PPF has a 15-year tenure, a long period to stay invested without knowing the future interest rate applicable, as it is a market-driven product. The first-year investment can be withdrawn only in the seventh year. Though the government has always been soft on PPF's return on investment, it is not a given that the rates will stay constant or will go up in a high interest rates scenario. Since 2013, when the rates were increased from 8.5 per cent to 8.7 per cent, banks were offering close to 9.5-9.75 per cent for up to two to three years of deposits, compounding quarterly, which could take the yield to more than 10 per cent, says Abhinav Angirish, managing director of InvestOnline.in.

Future prospects

Yet, even if the PPF rates drop in the years to come, it could remain among the most attractive debt products to invest in. Assume PPF returns six per cent tax-free in future; the competing debt products will give less post-tax returns. Then, banks will also returns six to seven per cent annually, which will go down to three to four per cent, post tax.

"But, with five-six per cent returns, PPF will become unattractive compared to products that hold or lock interest rates on investment. For instance, once you invest in a three-year fixed deposit rate of, say, six per cent, it will earn you that much every year for three years. The same goes for tax-free bonds. But, PPF rates will change as per government announcement every year," explains certified financial planner Anil Rego.

Recommendations

Investment experts advise parking all of the additional Rs 50,000 under Section 80C in PPF only for those close to retirement, say if one is five to seven years away from hanging up his/her boots. "And, this too for those who are self-employed. The idea is to keep the retirement corpus untouched from business needs," explains Dhawan.

Salaried individuals should avoid PPF and focus on saving through equity because EPF contribution towards EPF is mandatory for them. And EPF is no different from PPF. "If an investor is willing to stay invested for 15 years, the best mode of investment should be equities. There is not a single period of 15 years at a stretch where equities would have given below 15 per cent a year. An equity-linked savings scheme (ELSS) with a three-year lock-is an ideal tool to invest among the Section 80C instruments. However, this is also subject to an investor's risk appetite and asset allocation," explains Angirish.

In the past one year, ELSS has returned 54.23 per cent, shows data from Value Research. In comparison, equity diversified funds have returned 50 per cent in the same time period. Additionally, ELSS gets tax exemption for both the investment amount and returns on it.

Rego suggests sticking to the proportion of PPF one always invested in. Say you invested Rs 25,000 in PPF when the Section 80C limit was Rs 1 lakh. Then, you could maintain the 25 per cent allocation and invest Rs 37,500. The rest of the limit could be diversified among other instruments.

Sournce: www.business-standard.com

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Employee P.F. Ceiling Limit increased by Rs. 8500/- i.e. from Rs. 6500/- to Rs. 15000/- for Fin. Year 2014-15.

The Hon'ble Union Minister of Finance in the Budget Speech of 2014-15 has announced enhancement in statutory wage ceiling for enrollment under the EPF and MP Act, 1952 to Rs. 15000/- per month from the current maximum of Rs. 6500/- per month.  On this ground Central Board of Trustees’, Employees' Provident Fund (CBT, EPF) has been issued a circular regarding enhancement of wage ceiling from Rs. 6500/- to Rs. 15000/- per for Fin. Year 2014-15.  This amendments related to the Employees’ Provident Fund Scheme, 1952 (EPF), Employees’ Pension Scheme, 1995 (EPS) Employees’ Deposit Linked Insurance Scheme, 1976 (EDLI) for implementing increase in wage ceiling to Rs. 15,000/- and Minimum Pension of Rs. 1,000/- - issues and modalities.

In view of above, the following preparatory activities are required to be initiated immediately:

• The total number of establishments in your office be listed out Enforcement Officer wise.  Further, in respect of each establishment "Enforcement Group" and "Enforcement task-id" shall be compulsorily marked in the Application Software;
• Enforcement officer may be directed to visit the establishment to check the total number of employees drawing salary beyond Rs. 6500/- and upto Rs. 15000/- and not enrolled as members.  The data so collected shall be required immediately after issue of the notification;
• The tour programme of Enforcement Officer shall be chalked out in such a way that they visit establishments where there is concentration of large number of workers particularly the building and construction industries, placement agencies etc.;
  
• Wherever the Enforcement Officers visit the establishment they should also meet the representatives of the workers' unions and apprise then about the said likely notification enhancing the statutory wages ceiling;
• Meeting may be arranged to apprise the establishment about the intent of the notification and assist them in implementing with same once it is issued.

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EPFO/GPF Interest Rates may rise from 8.75 to 9% for Fin. Year 2014-15

Retirement  fund body EPFO may well provide nine per cent interest rate on PF deposits to the current fiscal to be able to its over 5 crore subscribers, slightly above 8. 75 per cent paid in 2013-14.

"The initial estimates indicate which the Employees' Provident Fund Organisation (EPFO) can simply provide nine per cent interest rate on PF tissue for 2014-15, inch a source claimed.

According to your pet, the improved current market conditions, especially following formation of a whole new government at Heart last month, have raised anticipations of higher assure on various investments by the body.

EPFO deals with a corpus associated with over Rs 5 lakh crore. It has received Rs 71, 195 crore while incremental deposits from its subscribers underneath social security schemes run because of it during 2013-14, that's 16 per cent above Rs 61, 143 crore collected because of it in 2012-13.

The origin said EPFO in addition plans to unlock its investment associated with around Rs fifty five, 000 crore within Special Deposit Structure (SDS). The government pays a fixed rate of eight per cent on SDS to EPFO that's lower than different investment options available in the present legal frame work.

EPFO is also anticipated to improve yields or maybe returns on its investment within the new norms prescribed under an expenditure pattern notified by the Labour Ministry not too long ago.

According to the revolutionary pattern, EPFO can invest approximately 55 per penny of its funds with big debts securities issued simply by banks and lender and other physique corporates.

The new expenditure pattern also allows EPFO to get up to five per cent of its corpus in money market tools, including units associated with mutual funds, money linked schemes regulated by Securities and also Exchange Board associated with India.

The new investment norms provide for parking approximately 55 per cent on the EPFO funds in a very new category including government and state bonds.

Source: www.taxalertindia.com

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EPF Interest Rate is 8.75% For Fin. Year 2013-14.

Government has approved payment of 8.75 percent rate of interest on PF deposits in 2013-14 for over five crore subscribers of retirement fund body EPFO. "The Finance Ministry has given its concurrence to the Employees' Provident Fund Organisation's (EPFO) trustees' decision to provide 8.75 percent rate of interest to its members for the current fiscal," an official said. EPFO's apex decision making body, the Central Board of Trustees (CBT) headed by Labour Minister had decided to raise interest rate for the current fiscal to 8.75 percent from 8.5 percent paid in 2012-13, in its meeting held on January 13. 

The CBT decision was sent to the Finance Ministry for vetting. Since the Finance Ministry has given its concurrence to the decision, the interest would be credited into the accounts of subscribers, he said.  

EPFO estimated an income of Rs 25,048.55 crore for 2013-14. As per its estimates, the payment of interest rate at 8.75 percent would require Rs 25,005.41 crore and there would be a surplus of Rs 43.14 crore. 

According to the official, the Finance Ministry has asked the Labour Ministry to expedite the updation of EPFO's subscribers' accounts till March 31, 2014. Now the Labour Ministry would communicate the approval of the Finance Ministry to the EPFO for crediting the said rate of interest in the PF accounts of its members for the current fiscal and settle claims accordingly.

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Interest Rates for Small Savings Schemes increased for the Financial Year 2014-15.

The Government of India Ministry of Finance has increased Interest rate on Small Savings Schemes of Post Office Department on popular schemes. Only because to competitive with Banks' FDR and Private & Public Sector Investment.

Various decisions taken by the Government of India on the recommendations of the Shyamala Gopinath Committee for Comprehensive Review of National Small Savings Fund (NSSF), were communicated to all concerned by the Government through its Office Memorandum dated 11th November, 2011.

One of the decisions of the Government based on the recommendations of the Committee relates to revision of interest rates every financial year, to be notified before 1st April of that year. Accordingly with the approval of the Finance Minister, the rates of interest on various small savings schemes for the Financial Year 2014-15 effective from 01.04.2014, on the basis of the interest compounding/payment built-in in the schemes, shall be as under :

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EPF Interest rate i.e. 8.5 Percent for Fin. Year 2013-14

Retirement life fund body EPFO will pay at least 8.5% rate of give back on PF remains for 2013-14 to its over 5 crore buyers as provided in the last fiscal and deciding in this regard might be taken as early as next month.

"The Employees' Provident Finance Organisation (EPFO) is not going to pay less in comparison with 8.5% interest rate in PF deposits for the current fiscal, inch an EPFO established said.

"The decision within this regard could be studied in December because body is going to schedule a conference of its height decision making system Central Board connected with Trustees (CBT) the following month, " he added in.

EPFO had provided 8.5% interest rate pertaining to 2012-13, up through 8.25% in 2011-12.

Trade unions have written for the Labour Ministry to urgently convene the actual meeting of EPFO's height decision making body CBT to settle on the interest pace.

Ever since the actual CBT was reconstituted in May, no meeting continues to be held so far. Since the new CBT has not met after its reconstitution in May possibly, no sub-committees might be reconstituted. The term in the sub-committees is co-terminus with the CBT.

The EPFO established said that CBT would have to meet at lowest twice before deciding rate on PF deposits for the current fiscal.

Inside first meeting, the trustee might constitute FIC and in the second meeting they might decide on interest rate based on the recommendations of the committee taking a look at the proposal.

The proposal for the interest rate is cooked by the EPFO which can be vetted by the actual FIC and would go to CBT for ultimate consideration. Once approved from the CBT, the decision on rate requires concurrence connected with Finance Ministry which includes to notify this.

Only after notice, the interest is credited into your accounts of buyers.

As per the actual norms, EPFO is required to announce rate on PF deposits before the start of a financial calendar year. However, for the past few years, there continues to be delay in announcement in the rates.

Source: www.taxalertindia.com

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E.P.F. Account transfer online w.e.f. 15th August

Employee’s provident fund organization (EPFO) announced Independence gift to Indians as online transfer of Provident fund account on changing jobs will start on 15 August. This facility will benefit around 13 lakh subscribers in India.

Earlier EPFO has started taking digital signatures of the employer as it will be a vital for system for online transfer. The department hopes a good response from the employer providing digital signatures as the success of online transfer of accounts depends on it.  The department wants to launch the service of online transfer of PF account on 15 august the day of independence.

Digital signatures are used quite often in other sources like in income tax return as well as in big companies, on cheques as well. So there is no harm providing to EPFO as it will make transferring provident fund account really fast and easy.

Once the service is launched, subscribers would be able to apply online for transfer claims through their employers. It has set up a central clearance house for the purpose.

During 2012-13, 107.62 lakh claims were settled, of which 88 per cent were processed within 30 days, as prescribed by the body's citizen charter.

EPFO expects 1.2 crore claims in 2013-14, including around 13 lakh PF transfer claims. It plans online settlements of about 10 lakh transfer claims of tech-savy applicants from industries such as IT, this fiscal.

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Enhancement in the rate of used Medical Allowance from Rs. 1200/- to Rs. 2000/- p.m. w.e.f 01.03.2013

EPFO has enhanced the rate of medical allowance from Rs. 1200/- to Rs. 2000/- Per month w.e.f. 01.03.2013, payable to the serving as well as retired employees of the EPFO for outdoor medical treatment.  The full notification is as follows:

Employees’ Provident Fund Organisation
(Ministry of Labour and Employment, Government of India)

No, HRM-8/V/12/1/2003/FMA/Vol-117/6160

Dated 13 JUN 2013

To,
All Addl. Central P F. Commissioner (Zones)
Director (NATRSS)
All RPFCs-In-Charge of the Region/ZTIs
RPFC (ASDL), Head Office
All Officer-in-charge of SROs

Sub:. Enhancement in the rate of used Medical Allowance from Rs. 1200/- to Rs. 2000/- p.m. w.e.f 01.03.2013, payable to the serving as well as retired employees of the EPFO for outdoor medical treatment - regarding.

Sir,
I am directed to convey the approval of the 76th Executive Committee, CBT, EPF held 25/02/2013 and Hon'ble Labour & Employment Minister, Government of India for enhancement of the Fixed Medical Allowance (FMA) for pensioners and employees of EPFO from Rs. 1200/- p.m. to Rs 2000/- p.m w.e.f. 1st March, 2013, subject to the following conditions :-

(i) The enhancement of fixed medical allowance will be available to serving employees and pensioners (including family pensioners) of the Employees Provident Fund Organization. The serving employees of the Organization who are in the Head Office at New Delhi and Regional/Sub Regional Office at Delhi and at stations which are covered by the Central Government Health Scheme will not be eligible for Fixed Medical Allowance.  As soon as any employee is covered by Central Government Health Scheme, the fixed medical allowance admissible to him/her shall be stopped.

(ii) If two or more members of family are working in the EPF Organization, only one of them will be eligible for the facility of fixed medical allowance.

(iii) In the case of an employee whose wife/husband spouse is an employee of a Government or any other organization (including private firm/office) he/she will be required to give an undertaking that his/her spouse is not availing of medical facilities in case, lf any granted by their respective employers.

(iv) The Fixed Medical Allowance will be in lieu of the medical facility available for outdoor treatment under the Central Services (Medical Attendance) Ruler 1944 as adopted by the FPF Organization for its own employees and pensioners.

(Authority: Ministry of Labour & Employment, Govt. of India letter no.G-25012/2/2011-SS-I dated 07.06.2013)

You faithfully,
sd/-
(V.N. SHARMA)

ADDL. CENTRAL P.F. COMMISSIONER (HR)

Source : www.epfindia.com

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Interest Rate of EPF increased by 0.25% for Fin. Year 2012-13

The Interest rate of EPF has been increased by 0.25% for the Financial year 2012-13.  The Finance Ministry of India has approved EPF Interest rate 8.50% for Financial year 2012-13 in the previous year it is 8.25%.  The all EPF account subscribers are enjoing benefit of 0.25%.  The benefit of increase interest rate will take more than 4.5 crores EPF account holders.

The rate of interest 8.5 percent for 2012-13 will be implemented with immediate effect as per commissioner of EPFO Mr. Anil Swarup. He also said that EPFO will settle claim at 8.5 percent and credit the interest for 2012-13.

Central board of trustee (CBT) takes the decision about rate of interest on EPFO and it decided the rate of 8.5 percent for 2012-13. Now CBT will issue a notification to the EPFO department, only after which EPFO department gives credit the interest amount to the subscribers.

 According to the rules, rate of interest on EPF should be decided before the financial year but now days it becomes a practice of delay and this time it is decided after the end of financial year.

Claims are settled on the previous year interest rates in the absence of notification about the interest rate. After only notified by CBT, subscribers can claim on differential rates.

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Withdraw or Transfer Employees Provident Fund Online.

          EPF Commissioner Mr. Anil told in the press conference that "We have decided to set up a central clearance house which will be operational on July 1. This will enable subscribers to apply online for settlement of the withdrawal and transfer of funds claims" because EPF account holders are more than 50 Million and thus this facility is the most important for EPF account holder to withdrawal and transfer online.

          Now a days the EPF account holder has face the big problem that withdrawal and transfer fund if the Provident Fund Account holder will be change the job or transfer the job to other place in India.

           If the EPFO takes foot in this regard all EPF account holder get benefit of it. This facility will also give tracking the account as in what stage the account transfer is. It includes online tracking and getting the SMS time to time.

          EPFO has the dream plan to provide permanent account number to the entire employees provident fund account holder as one needn’t to transfer account one place to other. One account number will work all over country.

          But this dream project will take time around 8-10 months and only be possible in 2014 only. The department is setting the infrastructure for it. It needs speed clearance house and online office at every district.

          The new system will be very beneficial for the employees as this is department liability to verify the employees account by the employer for withdraw or transfer account. In current system the liability is of employees to get verified the account with the employer.

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Complete procedure to check Online EPF (Employee Provident Fund Account) Balance & FAQs.

Employee provident fund organization website(EPFO) has been provided online services to the EPF account holder. The employees provident fund deduct by the Employee as  fixed amount from his monhtly salary and contribute to provident fund and employer needs to do it the same in the Employee's EPF Account.
 

Procedure to Check Online EFP Account:

• First one needs to select state from drop down menu.
• Then one needs to click office name from the option given in blue link.
• Then one needs to submit the account number of provident fund account. If there is no extension number, left the space blank.
• One needs to enter the name same as in the records of EPF.
• One needs to enter the mobile number and the information about the account like account balance and last updation will be sent on mobile with a sms.

The following link to check online balance of your EPF Account upto the date, along with the latest approved transactions of settlement/advances/transfer-in/transfer-out etc.

• Select the EPFO office where your account is maintained and furnish your PF Account number.
• Leave the extension field blank, in case your account does not have one.
• You will be asked to enter your name and mobile number. The given mobile number will be recorded along with the PF Account Number.

On successful submission of above information, the details will be sent through SMS to the given mobile number.

Online EPF Account Balance Check Here
Online EPF Interest Rate
Online EPF Tax
Online EPF Information Check Here

FAQs.

What Is Member Portal?
Member Portal Is For Employee, Where Employee Can Check Own Pf Status.

What Is E-Passbook?
E-Passbook Is The Employee Provident Fund Status Book (Pdf). Employee Can Check Own Pf Status

Who Can Register On The Member Portal?
Any Member Of The Employees’ Provident Fund Can Register. At The Time Of Registration, Details Of the Pf Account(S) Is Not Required.

What Are The Advantages Of Registration?
Only A Registered Member Can Download His/Her Pf Account Passbook. Passbook Will Be Available for Immediate Download Only For The Active Members For Whom The Employer Has Uploaded An Electronic Challan Cum Return (Ecr) And Remitted The Dues. For Members Who Have Left The Service Before March 2012, The Pass Book Will Be Made Available If The Member Makes A Request For The Same On The Portal. Pass Book Of Members Having Inoperative Or Settled Accounts Will Not Be Displayed On The Portal.

Can A Member Create His Own User Id And Password On The Portal?
No. Any Chosen Document Number As In Pan, Aadhar, Passport, Etc Will Be The User Id And Mobile Number Will Be The Password. The Member Will Not Have To Remember The User Id And Password In Such Case.

Can A Pf Member Working For An Establishment Exempted Under The Epf Scheme Also Avail Benefits Under The Portal?
No. The Provident Fund Accounts In Such Case Are Maintained By The Respective Trust And Pass Book For Such Member Cannot Be Displayed Through The Member Portal.

A Registered Member Has Lost/Changed His Existing Mobile Number. Can He/She Change The Mobile Number On The Portal?
Yes, He/She Can Change The Mobile Number. Facility To Edit The Mobile Number Has Been Provided On The Portal. The Member Has To Login Using His/Her Id And Old Mobile Number And Then Edit The Existing Mobile Number. He/She Will Get A Pin Through An Sms On The New Mobile Number To Complete The Process.

What Are The Advantages Of Adding Multiple Document Numbers On The Portal?
The Member May At Any Point Of Time Be Carrying Any Of The Various Documents Such As Pan, Aadhar, Passport, Bank Pass Book. Adding The Multiple Numbers Gives Him/Her An Advantage Of Using Any Of The Number To Log In And Download His/Her Pass Book. He/She Will Also Not Have To Remember As To Which Document He/She Had Used For Registration.

If Any Document Number Is Wrongly Entered, Can It Be Edited?
Yes, The Number Can Be Edited. However The Document Number Used For Log In At The Time Of Editing Is Blocked. For Example, If A Member Has Logged In Using His/Her Pan, He/She Can Edit Any Other Document Number But Not The Pan. For Editing Pan If Wrongly Entered He/She Will Have To Log In With Some Other Document Number Already Added.

Why For Each Transaction The Member Has To Get And Enter The Pin Received On His/Her Mobile Number?
This Is To Ensure That The Portal Is Not Misused By Any Other Person Who May Know The Document Number And Mobile Number Of Any Other Member. The Record Of The Mobile Number Used For Registration And For Each Transaction Will Be Maintained In The Data Base And In Case Of Any Complaint, Action May Be Taken On The Basis Of The Mobile Number Used. Thus This Is Only To Safeguard The Interests Of The Members.

A Member Has Used One Identity Document To Register And Has Forgotten The Same. Can He/She Register Again Using His/Her Mobile Number?
No. One Mobile Number Can Be Used Only For One Registration. However He/She Can Click On The ‘Forgot Login’ Link Under The Fields For Document Number And Mobile Number To Get Through Sms His/Her Document Details Used For The Registration.

How Can A Member Download His/Her Pass Book?
After Login The Member Has To Use The Download E Passbook Link On The Portal. He/She Has To Select The State Under Which The Establishment Is Covered And Then The Epfo Office That Maintains His/Her Account. He/She Will Be Asked To Enter The Code Number, Account Number And His/Her Name. If The Passbook Is Available He/She Will Get A Pin On His/Her Mobile Number And On Entry Of The Pin He/She Will Get The Link For The Pass Book. He/She Can Open And Save The Pass Book On His/Her Computer.

What Entries Will Be Shown In The Pass Book?
Month And Date Wise Transactions Made In Member’s Account Will Be Displayed In The Pass Book From The Year For Which The Annual Accounts Were Updated For The Establishment For The First Time Since Computerisation Of The Concerned Field Office. For Example If The First Annual Accounts Of Member’s Establishment Were Updated For The Year 2008-09 By The Concerned Field Office After Its Computerisation, The Pass Book Will Display The Opening Balance For Year 2008-09 And All Transactions Thereafter.

A Member Has Left Service But Not Applied For Settlement Of His Account. Can He/She Download His/Her Pass Book?
Members Who Has Left Service Can Make A Request For Their Pass Book Through The Member Portal. Once His/Her Request Is Accepted On The Portal, He/She Will Receive An Sms When The Passbook Is Made Available On The Portal. He/She Can Then Login And Download The Pass Book. Passbook Will However Not Be Made Available If The Member’s Account Has Become Inoperative (No Contribution Received For 36 Months Or More) Or If It Is Settled. Pass Book Will Be Available For Immediate Download For Active Members Only For Whom The Employer Has Uploaded The Electronic Challan Cum Return (Ecr) And Has Made The Payment.

The Member Has Got The Pin On His Mobile Number While Downloading The E Passbook. But The Field For Entry Of The Pin Is Not Allowing Entry. What To Do?
The Field For Entry Of Pin Allows Enter Only When The Member Has Clicked On The Check Box With ‘I Agree’ Meaning That He/She Is Declaring That The Account Number He/She Has Entered Is His/Her Account And That In Case Of Amy Misuse Or Complaint His/Her Details Can Be Used For Suitable Action.

A Member Working For An Establishment Exempted Under The Epf Scheme Wants To Download His/Her Pass Book. Is It Possible?
No, The P F Accounts Of The Exempted Establishment Are Maintained By The Respective Trusts And Pass Book Of Such Member Cannot Be Displayed From This Portal.

While Downloading The E Pass Book A Message Appears “You Have Entered Invalid Members Id Or Name” What To Do?
Please Check Whether You Have Entered The Correct Code & Account Number And/Or Name. In Case Yes, The Name May Not Be Matching As Per The Record In Epfo. In Such Case The Member Has To Contact The Concerned Epfo Office.

The Member Has Downloaded His/Her Pass Book But There Is Some Error In The Name. What To Do?
At Present The Name As Appearing In The Pass Book Cannot Be Changed.

A Member Has Downloaded His/Her E Pass Book. However There Are Several Missing Entries In The Contributions. What To Do?
The Member Should Check First With The Employer Whether The Returns For The Month/Year Related To The Missing Entry Has Been Submitted By Him To The Concerned Epfo Office. In Case Yes Then He/She Can Contact The Concerned Epfo Office Regarding The Missing Details.

A Member Has Downloaded His/Her E Pass Book. However The Contributions Displayed Are Less Than The Actual Dues As Per His/Her Wages. What To Do?
He/She Should Check With The Employer As To What Amounts Have Been Shown In The Returns. In Case Of Any Grievance, He/She Should Contact The Concerned Pf Office.

A Member Has Attempted To Download The E Pass Book. He Is Not Getting The Pin. What To Do?
He/She Should Check The Message Displayed On The Screen. If The Message States That Pin Has Been Sent And The Pin Is Not Received, It May Be Because The Line Is Very Busy. In Such Case It Is Advised To Wait For Some Time And Try Again.

A Member Has Two Accounts In The Same Establishment? How Can He/She Download The Pass Book For Both?
Out Of The Two Accounts Under The Same Establishment One Will Definitely Be Closed And The Second Account May Be The Active One. The Member Should Apply In Form 13 To Get The Old Account Transferred To The Active One. After Transfer The Amount Will Be Added To The Active Account And Will Be Displayed In The Pass Book.

Can The Member Download The Pass Book Of An Account Multiple Times?
Yes. With The Launch Of Electronic Challan Cum Return The Members Account Will Be Credited With The Monthly Contribution Amount Each Month. The Member Can Download The E Pass Book Any Number Of Times (Every Month) To Check The Latest Details.

A Member Has An Active Account But Some Of The Earlier Accounts Have Become Inoperative. How Can He/She Get The Details Of Such Accounts Through The Portal?
E Pass Book Of Inoperative Accounts Will Not Be Displayed. However The Member Should Apply In Form 13 To Get The Earlier Account Transferred To The Active Account. In Such Case The Details Of The Amount Will Appear In The Pass Book Of The Active Account.

A Member Does Not Know The Epfo Office Under Which His/Her Establishment Is Complying. How Can He/She Download His/Her Passbook?
The Member Can Use The Establishment  Search Facility On The Epfo Website To Get The Details Of The Office And Also The Code Number Of The Establishment.

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RBI Notification for Revision of Interest rates on 5 Year SCSS,2004 & PPF,1968 Schems

By the Notification No. RBI/2012-13/458, DGBA.CDD. No. H- 5603 /15.02.001/2012-13, Dated March 28, 2013 Reaserve Bank of India has revised Interest rate of PPF scheme and enior citizens saving scheme 2004 w.e.f. 01st April, 2013.  For full information you may read the following notification.

Public Provident Fund Scheme, 1968 (PPF, 1968) and
Senior Citizens Savings Scheme, 2004 (SCSS, 2004) - Revision of interest rates 

Please refer to our circular RBI/2011-12/359 dated January 20, 2012 regarding interest rates on small savings schemes, wherein it was indicated that as per Government’s decision on revision of interest on small savings schemes, the interest rates on various small savings schemes for every financial year will be notified by the Government before April 01st of that year.

2. The Government of India has now vide their Office Memorandum (OM) No. 6-1/2011-NS.II (Pt.) dated March 25, 2013, advised the rate of interest on various small savings schemes for the financial year 2013-14. Accordingly, the rates of interest on PPF, 1968 and SCSS, 2004 for the financial year 2013-14, effective from April 01, 2013, on the basis of the interest compounding/payment built-in in the schemes, will be as under:

Scheme	Rate of Interest w.e.f. 01.04.2012	Rate of Interest w.e.f. 01.04.2013
5 year SCSS, 2004	9.3% p.a	9.2% p.a
PPF, 1968	8.8% p.a	8.7% p.a

3. The contents of this circular may be brought to the notice of the branches of your bank operating the PPF, 1968 and SCSS, 2004 schemes. These should also be displayed on the notice boards of your branches for information of the PPF, 1968 & SCSS, 2004 subscribers. 

All Small Saving Scheme Rate of Interest.

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Rate of Interest w.e.f. 01.04.2013 on PPF, NSC, SCSS, MIS, POTD reduced.

REVISION OF INTEREST RATES FOR SMALL SAVINGS SCHEMES

WITH EFFECT FROM 01ST APRIL, 2013

Based on the decisions taken by the Government on the recommendations of the Shyamala Gopinath Committee for Comprehensive Review of National Small Savings Fund (NSSF), the interest rates for small saving schemes are to be notified every financial year, before 1st April of that year. Accordingly, the rate of interest on various small savings schemes for the financial year 2013-14 effective from 1-4-2013, on the basis of the interest compounding/payment built-in in the schemes, shall be as under :

Scheme	Rate of Interest w.e.f. 1-4-2012	Rate of Interest w.e.f. 1-4-2013
Savings Deposit	4.00%	4.00%
1 Year Time Deposit	8.20%	8.20%
2 Year Time Deposit	8.30%	8.50%
3 Year Time Deposit	8.40%	8.30%
5 Year Time Deposit	8.50%	8.40%
5 Year Recurring Deposit	8.40%	8.30%
5 Year SCSS	9.30%	9.20%
5 Year MIS	8.50%	8.40%
5 Year NSC	8.60%	8.50%
10 Year NSC	8.90%	8.80%
PPF	8.80%	8.70%

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