In today’s fast-paced world, ensuring financial security has become imperative for every employee. One of the tools that facilitate this security in India is the Universal Account Number (UAN). The UAN is a unique 12-digit number assigned to every employee contributing to the Employee Provident Fund (EPF), streamlining multiple EPF accounts under a single umbrella. This guide explains the activation and login process for UAN, and its implications, with insights into Form 16A and other relevant details.
What is UAN?
The Universal Account Number (UAN) is allocated by the Employees’ Provident Fund Organisation (EPFO) and remains constant throughout an individual’s career. When employees change their jobs, their new employer assigns a new Member Identification Number (ID) linked to their UAN, which helps them manage multiple EPF accounts under one number.
Importance of UAN
- Portability: UAN enables easy transfer of EPF balances from the previous employer to the current one.
- Transparency: Employees can readily monitor their EPF accounts, provident fund deposits, and other financial transactions.
- Integration: UAN facilitates easy merging of multiple Member IDs.
How to Activate UAN?
Step-by-Step Guide
1. Obtain UAN from Employer:
Obtain your UAN from your current employer. It’s usually mentioned in your salary slip or other HR documents.
2. Visit EPFO Portal:
Go to the EPFO member e-Sewa portal at [https://unifiedportal-mem.epfindia.gov.in/memberinterface/](https://unifiedportal-mem.epfindia.gov.in/memberinterface/).
3. Activate UAN:
– Click on “Activate UAN.”
– Enter details such as UAN, member ID, Aadhaar number, PAN, and your mobile number.
– Click on “Get Authorization Pin.”
4. Authenticate:
– Enter the OTP received on your registered mobile number.
– Click on “Validate OTP and Activate UAN.”
5. Set Password:
– After activation, create a password for your UAN login.
– Confirm the same.
You will receive a confirmation message on your registered mobile number about UAN activation.
How to Login Using UAN?
1. Visit EPFO Portal:
Go to the EPFO member e-Sewa portal.
2. Login:
– Enter your UAN, password, and CAPTCHA.
– Click on “Sign In.”
3. Access Account:
After logging in, you can access various details like your PF account balance, passbook, profile, and request services such as PF withdrawal or transfer.
Form 16A and Its Relevance
Form 16A is a crucial document issued by employers that provide a summary of the total tax deducted at source (TDS) on income other than salary. This form is pivotal for employees during the filing of Income Tax Returns (ITRs).
How to link Form 16A with UAN?
1. Login to the EPFO Portal:
Use your UAN to log in to the EPFO portal.
2. Check Financial Transactions:
In your account, navigate to the section where financial details and TDS deductions are shown.
3. Verify TDS Details:
Ensure the TDS deducted as shown in Form 16A matches the transactions in your EPFO account.
Matching details in Form 16A with EPFO ensures transparency and avoids discrepancies during tax filing.
Calculations in Indian Rupees
Example Calculation for EPF Contribution
- Employee’s Basic Salary: ₹30,000
- Employee’s EPF Contribution:
– Employee contributes 12% towards EPF.
– 12% of ₹30,000 = ₹3,600
- Employer’s EPF Contribution:
– Employer also contributes 12%, but it’s divided into EPF and EPS (Employee Pension Scheme).
– For simplicity, let’s assume 8.33% to EPS and the remaining to EPF.
– EPS Contribution: 8.33% of ₹30,000 = ₹2,500
– EPF Contribution: (12% – 8.33%) = 3.67%
– 3.67% of ₹30,000 = ₹1,100
- Total Monthly EPF Contribution:
– Employee’s contribution: ₹3,600
– Employer’s contribution: ₹1,100
– Total = ₹4,700
Transactions and Form 16A
Employees should periodically check the EPFO portal to ensure that their contributions and respective Form 16A details are accurately reflected. This aids in seamless tax filing and financial planning.
Conclusion
Understanding the activation and login process for UAN, along with the relevance of Form 16A, is essential for every employee. These tools not only offer transparency but also integrate various financial facets, aiding in efficient financial management. Regular checks and updates ensure that employees remain financially adept and avoid discrepancies during tax filings.
SummaryÂ
This guide elucidates the entire process of activating and logging into Universal Account Number (UAN) for employees, providing a seamless approach to managing multiple EPF accounts. It includes a step-by-step method to activate UAN and log into the EPFO portal. Additionally, the guide highlights the importance of Form 16A, which outlines the tax deducted at source on non-salary income, and how ensuring its correct linkage with UAN avoids discrepancies during tax filing. An illustrative example in Indian Rupees shows how contributions are broken down between employees and employers. The guide encourages employees to periodically verify their EPF accounts and ensure alignment with Form 16A details.
Disclaimer
This content is for informational purposes only. Employees and investors must conduct their thorough research and consider all risks involved in trading or any financial decisions related to the Indian financial markets.
