Aadhar linking mandatory for PF Withdrawal is an important update. As we all know, many people have lost their jobs due to the coronavirus pandemic, while others have seen their income drop.
Besides, due to medication and health issues, expenditures have risen. Therefore, Many Provident Fund (PF) contributors in India are withdrawing their contributions to help themselves with the funding shortage.
That’s why, in this article, we will read about Aadhar linking mandatory for PF Withdrawal. We will also read about commonly asked questions about this update.
Aadhar linking mandatory for PF Withdrawal
According to a new update by the government, if your UAN (Universal Account Number) links with your Aadhaar, only you will be able to make PF Withdrawal.
It has been implemented under Section 142 of the Social Security Code 2020. It has been made effective from June 1, 2021.
What if Aadhar is not linking to PF Withdrawal?
The employer would not be able to upload an electronic challan-cum-return (ECR) with employee PF unless its UANs are connected with Aadhaar. Furthermore, they will not be able to make a withdrawal from their PF account to their bank account.
How can one seed Aadhaar with an EPF Account?
Linking aadhaar with a PF Account is very easy. All you have to do is visit the official website http://www.epfindia.gov.in/ and link EPF with aadhar.
What if we fail to link Aadhaar with PF?
Not only the transfers that are being affected by this update. Moreover, access to the EPF benefits is suspended. It means Employees will not be able to make withdrawals, take loans, or avail of any other benefits under the EPF Act until their Aadhaar is seeded into their UAN and their account is sort of blocked.
Know about the benefits of EPF Registration
EPF or PF Registration has the following key advantages.
- It supports the transition to a lifestyle after retirement.
- EPF also has used to fund pensions.
- EPF Registration supports the exemption from tax.
- The interest rate is high among other schemes.
- It’s fairly straightforward to open an EPF account.
- When jobless, EPF enrolled can use EPF to get financial support.
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