Your PAN card is one of the most important documents. Permanent Account Number (PAN) helps in keeping a track of the taxes paid by the entities that carry out businesses in India. The government has made it mandatory to link PAN with various financial instruments.It also helps you to save taxes on EPF withdrawals.
Linking of Aadhaar with EPF account has already been made compulsory. However, seeding of PAN and bank account number are not compulsory yet is important if we process any online EPF claims. You must update your KYC details in order to make online claims in EPF.
You can link your PAN card with your EPF account easily and Employees Provident fund organization has made it easier for people to link PAN Card with EPF account.
According to the latest rules, if the collective service period is of less than 5 years, then TDS is deducted on withdrawals. Although, no TDS will be deducted if the balance is below 50,000.
Although not mandatory, you must link your PAN with EPF account as TDS of approximately 34.60% will be deducted during the final PF withdrawal without a valid PAN number. However, if you have linked your PAN card with EPF account, the rate at which TDS will be deducted is 10%. Thus, linking is beneficial for your future related claims.
You can link your PAN with EPF account following these simple steps.
How to link PAN Card with EPF account
- Login to the EPF members portal website and enter your credentials- Your UAN number and password.
- Click on manage and click on KYC on the drop-down list
- You can see a list of documents. Click on the PAN option and enter your PAN details.
- Click on the save button and the document will be submitted for verification process…Read more>>