EPF, EPS, EDLI & EPFO — Set 6
Labour Laws · EPF, EPS, EDLI और EPFO · Questions 51–60 of 200
What is the tax treatment of EPF under the EEE category?
Correct Answer: C. Contribution, accumulation, and withdrawal are all exempt
EPF enjoys the EEE (Exempt-Exempt-Exempt) tax status. The employee's contribution is exempt from tax up to Rs 1.5 lakh under Section 80C, the interest earned is tax-exempt, and the maturity proceeds are tax-free (after 5 years of service). This makes EPF one of the most tax-efficient long-term savings instruments.
The EPF Act 1952 does NOT cover which type of establishment by default?
Correct Answer: C. Agricultural establishments employing seasonal workers
Agricultural establishments employing only seasonal workers are generally excluded from the mandatory coverage of the EPF Act. The Act covers factories, shops, commercial establishments, and establishments in specified industries with 20+ employees. The government can extend EPF coverage to any other class of establishments through notification.
EPFO's centralised IT system for member services is known as:
Correct Answer: C. Unified Portal / EPFO Member Portal
EPFO's Unified Member Portal (https://unifiedportal-mem.epfindia.gov.in) provides online services to EPF members. Through this portal, members can activate UAN, check balance, file claims, update KYC, and transfer PF accounts. The portal is part of EPFO's broader digitisation drive since 2014.
Under which scheme does EPFO provide disability pension?
Correct Answer: B. EPS — Invalidity Pension
EPS provides invalidity pension to members who become permanently and totally incapacitated while in service. This pension is available regardless of the years of service completed at the time of disablement. The member does not need to have completed 10 years of service to receive invalidity pension.
What is the maximum amount that can be invested in PPF annually?
Correct Answer: C. Rs 1.5 lakh
The maximum annual investment limit in PPF is Rs 1.5 lakh per financial year. The minimum annual deposit is Rs 500. Investments in PPF qualify for deduction under Section 80C of the Income Tax Act up to Rs 1.5 lakh.
What is the difference between EPF and PPF in terms of who can contribute?
Correct Answer: B. EPF is for salaried employees; PPF is open to all including self-employed
EPF is exclusively for salaried employees in covered establishments, contributing through payroll deductions. PPF is open to all Indian residents, including self-employed professionals, businesspersons, and even salaried individuals who want additional tax-saving investments. PPF accounts can also be opened in the name of minors by parents.
What action triggers auto-transfer of EPF to a new employer?
Correct Answer: B. Activating UAN at new employer with same UAN
When an employee joins a new employer and the UAN is seeded with Aadhaar and KYC, the EPF account linked to the previous employer can be transferred online using the EPFO member portal. Form 13 is the formal application for PF transfer, but with a seeded UAN the process is largely automated. Auto-transfer integration with UAN ensures seamless portability of retirement savings.
Which percentage of EPS is contributed by the Central Government?
Correct Answer: B. 1.16% of wages
The Central Government contributes 1.16% of wages to the EPS on behalf of each member. This government contribution ensures the viability of the pension fund. Together with the employer's 8.33% EPS contribution, the scheme is funded from these two sources.
What is the pension calculation formula under EPS?
Correct Answer: B. Pensionable Salary × Pensionable Service / 70
The EPS monthly pension is calculated as: (Pensionable Salary × Pensionable Service) / 70. Pensionable salary is the average of the last 60 months' salary (subject to the Rs 15,000 wage ceiling). Pensionable service is the actual service period, with a bonus of 2 years for those completing 20 years.
What document does EPFO issue as proof of PF balance and transaction history?
Correct Answer: C. PF Passbook / e-Passbook
EPFO issues a PF Passbook (now available digitally as an e-Passbook) that shows all monthly contributions, interest credited, and withdrawals. Members can download the e-Passbook from the EPFO member portal or UMANG app. The passbook is a key document for verifying PF accumulation and resolving discrepancies.