The Employee Provident Fund Organisation (EPFO) permits people to just have one Universal Account Number (UAN). Think of UAN as an umbrella account that can house several participant IDs. When you change work, your participant ID modifications yet your UAN continues to be the exact same.
However, sometimes, you might be set aside a brand-new UAN in spite of currently having one. This can occur if your previous company did not discuss in its document (digital challan orgasm return) that you have actually left the firm or if you make an inaccurate statement when signing up with a brand-new firm.
It’s vital to make sure that you preserve a solitary UAN when changing work. That’s due to the fact that there’s a tax obligation waiver on passion made in the EPF account if you add to it for a minimum of 5 years. If you obtain a brand-new UAN when changing work, it will certainly begin dealing with cash from your brand-new work as fresh payments.
EPFO dealt with the problem in 2016
The EPFO launched a round resolving this problem in 2016. It stated that in instance 2 UANs have actually been provided, the participant needs to relate to move cash from the previous EPF account to the brand-new one.
It would occasionally determine situations in which funds were moved from the old account to the brand-new one and would certainly shut off or shut the old account– “also when no demand has actually been obtained from the participant”.
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In instance the previous company was still paying to the old account, EPFO stated, its system would certainly identify the energetic UAN versus the shut off one and reroute the funds to the energetic account.
Why it is necessary to have simply one account
Anurag Jain, creator of By the Book Consulting, stated he had 3 UANs at one factor. However, because the EPFO presented Aadhaar connecting, there have actually been less situations of this as the system instantly identifies if somebody with an existing UAN is attempting to open up a brand-new account.
Those with several UANs should visit to their old account and move the funds to the brand-new one, statedJain The procedure can be finished online, yet participants should guarantee their KYC information are proper when doing so. If this isn’t done, “workers might have concerns in declaring the cash individually,” stated Vishwanath BG, associate supervisor,Mercer Wealth India Pvt Ltd
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Sometimes, a brand-new company produces a brand-new UAN with Aadhar connecting, yet the participant neglects to attach their old UAN, which was not connected to Aadhar, to the brand-new one. In such situations, the EPFO might begin dealing with the brand-new UAN as a fresh participant, stated Adarsh Vir Singh, creator ofNidhi Niyojan In such situations, advantages such as pension plan– which depends upon the period over which a participant adds to the system– might be influenced. He encouraged individuals with several UANs to move their old equilibriums to the brand-new Aadhar- connected account to make sure connection.
How to combine UAN accounts
Kunal Kabra, president of Kustodian Life, stated that to combine 2 UAN accounts, you just require to visit to their existing UAN account, browse to the ‘Online Services’ area, and pick ‘One Member One EPF Account’.
Next, get in the UAN of the account you wish to combine. You’ll after that require to select whether to get an attestation from your previous or existing company. Once all information are filled out and verified utilizing Aadhaar, you can send the combine demand.
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“After verification, download Form -13. Also, examine the standing in ‘Track Claims’ and take a screenshot. Drop an e-mail to the company with a screenshot for fast authorization,” said Kabra. He added, “If the PF account was created before 2014 and lacks a UAN, you can find the member ID and use it to initiate the merging process.”
Alternatively, you can email uanepf@epfindia.gov.in with information of your existing and previous UAN. “If your UANs are combined yet your PF equilibrium has actually not been moved, you require to start an ask for it on the EPFO site,” stated Kabra.
