Big EPFO relief during lockdown; EPF deposit norms relaxed

Employees' Provident Fund Organisation (EPFO) has eased norms for establishments covered under EPF and MP Act on delay in deposits. The Provident Fund (PF) regulatory authority today announced relief for such establishments from levy of penalty for delayed deposit of dues during lockdown. The Ministry of Labour & Employment informed about the Modi Government's decision and said that due to prolonged lockdown establishments covered under EPF & MP Act, 1952 are distressed and unable to function normally and pay the statutory contributions in time.

The Ministry of Labour & Employment issued a press statement in this regard and said, "Considering the difficulty faced by the establishments in timely deposit of contributions or administrative charges due for any period during lockdown, the EPFO has decided that such delays due to operational or economic reasons shall not be treated as default and penal damages should not be levied for such delay."

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The EPFO has already announced various measures for the EPFO subscribers by allowing 75 per cent of the EPF balance or three month basic salary (whichever is lesser) to withdraw during the period up to 30th June 2020. In this period, even those EPF account will be exempted from TDS and other taxes at source that are less than five year old. Generally, on EPF withdrawal before five years of account opening levies TDS and in come tax deduction at source.