10th June, 2021
EPFO i.e. Provident Fund Department has made such a rule from June 1, 2021, by which every employee will have to link the UAN i.e. Universal Account Number with the employee's Aadhaar. If his PF account (UAN) is not linked with Aadhaar, then his contribution will not be able to be deposited. Along with this, that person will also not be able to withdraw his PF.
Out of EDLI
According to personal finance expert and CA Manish Kumar Gupta, this means that the employee's PF will be deducted but the employer's contribution will be deposited only for those employees whose PF account has been linked with Aadhaar. In such a situation, the Employee Deposit Linked Insurance (EDLI) of the employee will also not be able to be deposited. That person will be out of the insurance cover.
No income tax relief
This will also have the effect that due to non-linking of UAN with Aadhaar, the employer will not be able to deposit his contribution and this amount will not be considered as an expense in income tax. If a person does not have a Universal Account Number (UAN) of PF, then his UAN will have to be obtained before doing provident fund related work.
What is EDLI?
Due to the covid mahamari, the Ministry of Labor has increased the amount of death insurance benefit. The limit of sum insured under the Employees' Deposit Linked Insurance Scheme, 1976 has been increased to Rs.7 lakh. With this, the minimum sum assured on the death of the account holder has been increased to Rs 2.5 lakh and the maximum amount has been increased to Rs 7 lakh. Earlier this amount was Rs 2 lakh and Rs 6 lakh. This amount is available when the account holder dies untimely.
Just as the process of linking Aadhaar with Permanent Account Number ie PAN in Income Tax is going on, the same process has been done by the government in the PF department as well. The result of this will be that the employers who used to show fake employees working in their organization, they will now be recognized and without linking Aadhaar, now they will not be able to withdraw their old PF. This is a big blow to the bogus employees and employers who evade such income tax.
Fake employees will be caught
Linking PF with Aadhaar means that now the data of both these departments will be linked to Aadhaar and now such fake employees will not be able to escape from paying income tax. The government's mission in economic matters is that the data of all the departments concerned should be shared with each other so that there is better control and there is no tax evasion at any level.
Result will be seen in one and a half year
This is a long process of the government, the results of which will be seen in one to one-and-a-half years, when the PF and Income Tax data will be fully linked to each other. If the UAN details of an employee are not linked with Aadhaar, do not match with his Aadhaar, then he will not be linked and in such a situation, either Aadhaar or UAN will have to be corrected. For this the department should also fix a time limit.