EPF, EPS, EDLI & EPFO — Set 10
Labour Laws · EPF, EPS, EDLI और EPFO · Questions 91–100 of 200
EPF contributions are exempt from Income Tax under which section?
Correct Answer: B. Section 80C
Employee's EPF contributions are eligible for deduction under Section 80C of the Income Tax Act, 1961, subject to a combined limit of Rs 1.5 lakh per year. Additionally, EPF interest and withdrawal are exempt under Section 10(11). This triple exemption (EEE) makes EPF highly tax-efficient.
What was the COVID-19 EPFO special advance called?
Correct Answer: B. Non-refundable advance under PMGKY
Under the Pradhan Mantri Garib Kalyan Yojana (PMGKY) in 2020, EPFO allowed members to withdraw a non-refundable advance of up to 75% of EPF balance or 3 months of wages (whichever is lower). The advance was specifically for COVID-19 relief and was tax-exempt. Over 1.3 crore claims were settled under this provision.
EPF interest credited each year is calculated on:
Correct Answer: C. Monthly running balance using a specific formula
EPF interest is calculated on the monthly running balance. Each month's balance is multiplied by the interest rate divided by 12 (monthly rate), and the total for the year is credited at year-end. This means contributions made early in the year earn more interest than those made in the last month.
An EPF member who migrates abroad permanently can withdraw EPF:
Correct Answer: C. Immediately upon migration
EPF members who permanently migrate abroad (surrender Indian citizenship or obtain permanent residency elsewhere) are eligible to withdraw their full EPF balance immediately. The withdrawal is treated as final settlement. This provision ensures that departing members can access their retirement savings without waiting for age-related conditions.
What is the PPF interest rate approximately for 2023-24?
Correct Answer: B. 7.1%
The PPF interest rate for 2023-24 was set at 7.1% per annum. PPF interest rates are decided by the Ministry of Finance and are reviewed quarterly. Unlike EPF (whose rate is set by the CBT), PPF rates follow the small savings scheme rates linked to government securities yields.
EPFO's e-nomination facility allows:
Correct Answer: B. EPF members to file nomination online via UAN portal
The e-nomination facility on the EPFO UAN member portal allows employees to file or update their EPF and EPS nominations online without physical paperwork. The nomination determines who receives EPF corpus and insurance benefits in case of the member's death. EPFO strongly encourages all members to complete e-nomination to avoid disputes.
Which of the following is a key difference between EPF and NPS?
Correct Answer: C. EPF gives fixed interest; NPS returns are market-linked
EPF provides a fixed, declared interest rate (currently 8.25%) that is guaranteed and determined annually by the CBT. NPS (National Pension System) invests in equity, corporate bonds, and government securities, so returns are market-linked and not guaranteed. NPS is mandatory for central government employees (post-2004) while EPF is mandatory for private sector employees in covered establishments.
Under which EPFO scheme does the Central Government contribute 1.16% of wages?
Correct Answer: C. EPS
The Central Government contributes 1.16% of the employee's wages to the Employees' Pension Scheme (EPS). This government contribution is over and above the employer's 8.33% EPS contribution. The government's contribution is made from the Consolidated Fund of India to support the pension fund.
What happens to the EDLI insurance amount if the employer already has a group insurance scheme (GIS) for employees?
Correct Answer: B. Employer can be exempted from EDLI if the GIS provides equivalent or better benefits
Employers can seek exemption from the EDLI scheme if they provide a group insurance scheme (GIS) that offers benefits equal to or better than EDLI. The exemption is granted by the EPFO after verifying the adequacy of the alternative scheme. However, the employer must maintain the GIS continuously to retain the exemption.
How many regional offices does EPFO approximately have across India?
Correct Answer: C. Over 120
EPFO has a network of over 120 regional offices, sub-regional offices, and district offices across India. The head office is located in New Delhi. The widespread network ensures outreach to workers and employers in every major industrial and commercial centre of the country.