Background and Rationale:

The Employees’ Provident Fund Organisation (EPFO) has introduced a revamped functionality for Form 13 (Transfer-Out) to simplify and accelerate the EPF transfer process between accounts. This update builds upon directions issued earlier under reference WSU/6(1)2019/IncomeTax/Part-I dated April 6, 2022, which required bifurcation of taxable and non-taxable components of PF accumulations in compliance with Income-tax requirements.

Previously, the processing of transfer claims involved multiple verification levels at the Transferee (Destination) Office, leading to delays and member grievances. This revamp aims to remove such redundancies and make the experience seamless for members.

Detailed Changes and Functionality:

1. Dispensing with 3-Level Processing at Destination Office: The three-tiered verification (Initiator, Verifier, Approver) at the Transferee Office has been entirely removed. Now, once the transfer claim is approved by the Transferor (Source) Office, the PF balance and pension service data from the previous account are automatically merged into the current account at the Destination Office. No further processing or action is needed at the destination end.
2. Bifurcation of Taxable and Non-Taxable Components: The revamped system incorporates the bifurcation of the member’s PF balance into taxable and non-taxable components, in line with Income-tax stipulations.
3. Improved Visibility via Annexure ‘T’: The Claim Approval Docket (CAD) now includes a new Annexure ‘T’ that shows the member’s profile and contribution history in the Transfer-in (Destination) Office. This information must be thoroughly verified by the Initiator, Verifier, and Approver at the Transferor Office before approving the claim.
4. Elimination of AO Transfer-In Rejection Role: Since post-approval tasks are automated and require no additional validation at the Destination Office, the role of AO Transfer-In Rejection is no longer required.

Implementation Guidance:

• All Transferor (Source) Offices must ensure thorough verification of member details before final approval.
• Any erroneous approval at the source end will lead to incorrect transfers that cannot be rectified at the destination, thus due diligence is critical.
• Offices are instructed to refer to Annexure 1 attached with the circular for detailed procedural updates.

Conclusion:

The EPFO’s revamped Form 13 functionality significantly simplifies the EPF transfer process by removing redundant layers and empowering the Source Office with full responsibility for accurate claim processing. This strategic change is designed to improve efficiency across field offices, reduce grievances, and offer a more member-centric service model.