The letters KYC stands for Know Your Customer in any financial institutions like Bank, Post office etc., including in EPFO. It is a mandatory digital verification for your Universal Account Number (UAN) using the documents like Aadhar, PAN and Bank account details. After linking all your mandatory documents to your UAN, the EPF member can easily avail EPF advance, can settle EPF accumulations and can transfer to any other EPF member ID.
Aadhar Linking to UAN:
At the time of joining in the employment, the employer must ask for Aadhar to link to your UAN, then only the employer can proceed further for generation of UAN. Care should be taken that details like Name, Date of Birth, Father/Husband name of the EPF member must be same in all documents including space, full stop, surname, and each letter.
The EPF members, if changes details in Aadhar, Bank account after generation of UAN, must again update in EPFO by submitting the updated documents.
Bank Account Linking:
The EPF member can update his/her Bank account details with EPFO after generation of UAN by logging to his EPF account through the link https://unifiedportalmem.epfindia.gov.in/memberinterface/in EPFO website. After updating the bank account details in EPFO member portal by the EPF member, the same will be verified online by concerned bank automatically without intervention of either employer or bank. If all the details are same in Aadhar, PF records and Bank account, it will link hardly within 3 days, otherwise it will get rejected after 60 days automatically. It is very important updating linking bank account for availing advances, withdraw EPF or to transfer the EPF accumulations.
PAN card linking:
The EPF member must link his/her Permanent Account Number (PAN) to their UAN to comply with the rules under Income Tax Act, 1961. The following are the rules relating to deduction of income tax while drawing/settlement of EPF.
(a). No income tax will be deducted, if the EPF amount is less than
50,000/- and rendered less than 5 years of service.
(b). No income tax will be deducted, if the EPF amount is more than
50,000/- but rendered less than 5 years of service and submitted
F.No. 15G/15H.
(c). Income Tax will be deducted at the rate of 10%, if EPF drawn is more
than 50,000/- and linked PAN card but not submitted F.No.15G/15H.
(d). Income Tax will be deducted at the maximum rate of 34.60%, if the
EPF member fails to link PAN, fails to submit F.No.15G/15H and
drawn amount more than 50000/-