The first things that one should know about the PF account are its basic need, use and how can it benefit a person in the long run.
What is a PF Account?
So let’s start with what is a PF account? Now to be very straightforward and clear in the terms we can say that PF stands for provident fund and it is a compulsory, government-managed retirement savings scheme that is similar to social security program in the United States. Under this workers contribute or collect a portion of their salaries into a provident fund account. The money collected in the account is later on paid out on their retirement. The PF account secures your future and with that, it also gives the person a very strong chance of making things perfect. The PF account helps a person in securing their future in many terms.
How to check the PF account balance?
Now the next important things are how to check the PF account balance? So let’s discuss this question in a more informative way. First of all, to check PF account balance the account owner must have an activated UAN number. This UAN number is unique and generated once your PF account is made. The number is given by the organization to the individual after it is made. You can also check your account’s balance by downloading the m-sewa app of EPFO. Once the app is downloaded click on the member and then go to balance /passbook and check your balance apart from this there are many other ways to check balance too:
a) Using the EPFO portal: Log on to the EPFO portal. Go to the tab ‘our services’ and choose the option that says ‘for employees’ from the drop-down menu. After that click on the option ‘Member passbook’ under the option of services. After that, a login page will appear to enter your UAN number and password thereafter it has been activated. After logging process now you can access your account and check the provident fund balance.
b) Sending an SMS: It is essential to integrate your UAN number with your KYC details only then you can access your EPF balance via SMS. And for checking via PF balance check SMS you need to send an SMS to mobile number 7738299899. Then you need to send the message as EPFOHO UAN ENG. Here (ENG) stands for English if you want some other language then you can use it too.
c) Giving a missed call: You can inquire about your EPF balance by giving a missed call to the authorized phone from your registered mobile number. For this first of all give missed call to 011-229010406 from the registered mobile number. And after the missed call you will receive an SMS providing you with your PF details.
1. Provident fund deduction from salary: When you start working you are required to put 12% from your basic salary. Into your EPF account. It is important to note that your basic pay per month should stand above Rs.6500. These funds are basically pooled together by many employees and invested by the trust.
2. Interest on PF: The compound interest that has been fixed by the government and central board of trustees is paid on the amount standing to the credit of the employee as on 1st April every year. While the contributions are made monthly but the interest is calculated yearly. It should be noted that the interest will always be accumulated on your Employee Provident Fund Balance and not on the funds that your EPS is a pension scheme.
3. What are the tax benefits? : The employer’s contribution to EPF is totally tax-free. And the contribution which is being done by any other person is tax deductible under section 80C of Income Tax Act. That means the money you invested in EPF, and the money you will eventually withdraw are exempted from Income Tax.
4. What happens when PF is not paid? : The only chance where you can actually opt out from the PF program is when you are at the start or initial level of your career. There you tell your boss that you do not want to be part of it they will make you fill Form 11. If you have contributed towards EPF even once and have an account of your name then in no chance you can opt out.
5. When can be withdrawn? : Withdrawals are generally not allowed from PF account unless you have given up working or want to be self-employed. If you want to withdraw money then you need to fill form 19 and the declaration and the reason for the same and wait for the interval of 2 months. You will need to submit this form with a letter stating that you are relieved from your job with a canceled cheque from your savings bank account to EPFO.
6. Benefits of EPF account: As we know walking out of the EPF scheme will eventually make your in-hand salary higher but at the end of the day, the money is going to save for your future when you will retire. Having a little less spending power today will make a stable financial building for tomorrow. You never know what’s in there in future and I too strongly agree that if no one knows it then why to save for it? But what if you reach there and have nothing to survive? So that is why PF is a great way to save your future.
