Joint Declaration Form: Change details in PF account

Many a time it happens that a withdrawal claim is denied if the Provident Fund account of the applicant does not reflect the correct information. Errors like having a typo in the name on your PF account or an incorrect date of birth seem like a minute error but can lead to a lot of hassle at the time of withdrawal.

It is important that your PF account displays the correct information. If your PF account is reflecting incorrect details, there are two ways to rectify them. Basic details can be rectified from the UAN portal itself, whereas some changes need to be made by filling a joint declaration form.

Updating details through UAN portal

EPFO has made it mandatory to link Aadhaar Card with UAN. Once the UAN is linked to Aadhaar, it is difficult to make any changes to the PF account.

However, some basic changes can still be made directly from the UAN portal even if the Aadhaar Card is verified. These details include change in qualification, marital status, salutation and address.

Here’s how you can change these details on the UAN portal:

  1. Login to your UAN Account
  2. Next, Navigate to “View” and click on “Profile”
  3. Lastly, click o the edit icon against the details you want to change and save the changes made.

Joint Declaration Form

For certain details like name, father’s name, etc., a Joint Declaration form is to be filed since these details are verified against the user’s Aadhaar and are not easily editable.

The details that can be changed/ corrected through a Joint Declaration form are:

  • Name
  • Father/ Husband’s Name
  • PF/ EPS Account No.
  • Date of Birth
  • Joining Date
  • Date of leaving

How to fill a Joint Declaration form

It is mandatory to physically submit the Joint Declaration form to the PF Office with which the establishment is registered.

  1. The Joint Declaration Letter is to be physically submitted to the PF Office with which the establishment is registered. The jurisdiction of the PF office with which your establishment is registered can be viewed on the homepage after logging in to the EPFO Portal.
  2. Mention the name of the employee whose details you want to rectify along with the name of the establishment.
  3. Next, enter the correct details, i.e. the details you want to be reflected on your PF account.
  4. In the next column, mention the details that are erroneous, i.e. the ones you want to correct.
  5. Attach self-attested proofs as may be required to support the correction claim you are making. Example: If you want to change errors in your name, you can attach a self-attested copy of PAN Card or Aadhaar Card.
  6. Lastly, get the form signed by the applicant and authorised signatory for the establishment and submit the form to your PF office.
Joint Declaration Form
Download the joint declaration form here
Download
Joint Declaration Form
Download the joint declaration form here
Download

How to generate UAN Number

Universal Account Number (UAN) is a unique number allotted by the Ministry of Labour and Employment, Government of India to the employees registered for Provident Fund. With Universal Account Number, the employee can access claims, claims status, PF balance, upload KYC, file for e-Nomination, etc. UAN number can be generated online through the EPFO Portal.

UAN can be generated by both, employer or employee.

Generate UAN through Employer

In order to generate UAN number of employees, first, the establishment/ employer will have to register itself with Employees Provident Fund Organisation (EPFO), India. In case the establishment/ employer is not registered with EPFO, they can register for provident fund online through the Unified Shram Suvidha Portal which is the official portal of the Ministry of Labour and Employment. 

Once the establishment is registered, following steps need to be followed to add members to EPF:

  1. Login to EPFO Portal

    Login to the EPFO portal using the credentials sent on your email Id upon successful sign up with Unified Shram Suvidha Portal.

  2. Register Individual

    Next, navigate to ‘Member’ and click on ‘Register Individual’ to add employees to your establishment.

  3. Enter Member Details

    Then, enter employee details like
    a. Name (as per Aadhaar Card)
    b. Date of Birth
    c. Gender
    d. Father/ Husband’s Name
    e. Relation to the name entered above
    f. Marital Status
    g. Nationality
    h. Mobile
    i. Email Id
    j. Qualification
    k. Date of Joining
    l. Monthly EPF wages as on Joining

    Then, enter the KYC details. It is mandatory to add Aadhaar details.

    After entering all the necessary details, click on ‘Save’.

    Note: If the employee already has a UAN, you may select the appropriate option.

  4. Approval

    Thereafter, you will be required to approve the same.

    In order to approve, navigate to ‘Member’ and click on ‘Approvals’.

    The member details you saved will be displayed here. Click on ‘Approve’ to add the member to the establishment. Upon approving, the employee will be added to the Establishment.

  5. Check UAN

    Finally, once you have approved the member, navigate to ‘Dashboard’ and click on ‘ Active Members’. Next, click on ‘Search’ and the page will display all the active members and their UAN.

Generating UAN through Employees

In case the employer has not allotted the UAN, employees can generate UAN number themselves by following these steps:

  1. Firstly, go to the UAN member page and click on ‘Direct UAN Allotment by Employees’ on the bottom right corner.
  2. Then, enter your Mobile Number linked with Aadhaar Card and enter the OTP received.
  3. Finally, the portal will auto-populate the fields based on your Aadhaar Card and your UAN will be generated. You will also receive an SMS with your UAN.

Exempt Income under Income Tax

What is Exempt Income?

There is a common myth that if you are earning any income then you will have to pay tax on it. The more you earn, the more would be the tax liability. But it is not true. There exist certain types of income for which your tax liability is zero. Such incomes are known as Exempt Income u/s 10 of the Income Tax Act. Such income is different from Deduction under Income Tax. While exempted incomes are excluded from the total taxable income of a taxpayer, deductions are availed on taxable incomes.

Types of Exempt Income

  • Agriculture Income:
    • Any income earned by the taxpayer from agriculture activity is exempt from tax. However, the agriculture income must be included in the total income for the calculation of the applicable slab rate. Thus, it is indirectly taxed by taxing the non-agriculture income at higher tax slab rates.
  • Gift Received from Relatives: 
    • Any gift received by an individual from relatives is exempt from tax. Gift received on the marriage or by way of will is exempt. Monetary gift received from non-relative up to Rs. 50,000 is also exempt from tax.
  • Long Term Capital Gain: 
    • From FY 2018-19, LTCG up to INR 1,00,000 is exempt from tax. Earlier, the long-term capital gain on the sale of stocks and equity mutual funds was exempt from tax under section 10(38). This section is not applicable to debt mutual funds.
  • Interest on Securities: 
    • Income from securities in the form of interest, premium, etc from government-issued bonds, certificates, deposits are tax-free. For eg: Bonds issued by NHAI, IRFC, REC, etc.
  • Profit Share from Partnership Firm: 
    • Any share of profit from a partnership firm or LLP is exempt from tax in the hands of the partner. However, interest on capital and remuneration is taxable.
  • Provident Fund: 
    • Payment received from PF is exempt under Section 10. However, PF withdrawal is taxable for less than 5 years of service. In the case of EPF, the taxpayer can withdraw the balance subject to a few conditions.
  • Gratuity: 
    • Gratuity received by a government employee is totally exempt from tax. Whereas in the case of employees of a private organisation, it is exempt subject to certain conditions.
  • Commuted Pension: 
    • Commuted pension received by the government employee is fully exempt. However, for other employees, it is exempt subject to certain conditions.

Other Exempt Income

  • Life Insurance: 
    • The payment proceeds of a life insurance policy are exempt under section 10(10D). This includes a maturity amount as well as death claims.
  • Receipts From HUF: 
    • Any amount received out of family income is tax-free in the hands of a member. For example, a family owns an impartible estate. An amount received out of an income of family estate by the member of such HUF is tax-free in the hands of the member.
  • Scholarship and awards: 
    • Any type of scholarship or award granted to any deserving student to meet the cost of education is exempt from tax. The entire sum of money received as a scholarship gets that tax exemption.
  • Amount Received under VRS (Voluntary Retirement Service): 
    • When an employee receives an amount under the scheme of voluntary retirement as per Rule 2BA of the Income Tax Rules gets a tax exemption up to Rs. 5,00,000 from the amount received as voluntary retirement.
  • Allowance for Foreign Services: 
    • Any Indian resident rendering service outside India and receiving any allowances or prerequisite outside the country are exempt from income tax u/s 10(7) of the Act. Due to this section, any perquisite and allowances received by government servant while working outside India are tax-free.

Reporting Exempt Income in ITR

Taxpayers can declare their exempt income while filing for income tax every financial year. The taxpayer should report exempt income under the section ‘Exempt Income’ in the tab ‘Computation of Income and Tax’ of ITR-1 & ITR-4. You can add a row, select the nature of income from the dropdown list, add description and amount.

The taxpayer should report exempt income under Schedule EI i.e. Schedule Exempt Income of ITR-2 & ITR-3. The taxpayer should report the details under the specific row for Interest Income, Agriculture Income, Income not chargeable as per DTAA, other exempt income with a relevant option from the dropdown. The Exempt Income is separately reported and not added to the Gross Total Income.

Disclosure of Exempt Income for Salary and Non-Salary Allowances

For salary account holders, you need to make a disclosure of exempt income under Schedule S – Details of Income from Salary’ while filing income tax as per ITR-2. The various exemptions are:

  1. HRA – House Rent Allowance
  2. LTA – Leave Travel Allowance
  3. Leave Encashment Amount
  4. Pension Amount
  5. Gratuity Amount
  6. Any form of perquisites received
  7. Amount received from a Voluntary Retirement Scheme

For self-employed or non-salary account holders, there are certain incomes categorized under exempt income. They include dividends, agricultural income, interest on funds, capital gains which have to be disclosed under Schedule EI while filing income tax as per ITR-1.

FAQs

Is dividend income exempt from tax?

Earlier, the Dividend received from a Domestic Company was exempt from tax under Section 10(38). However, under Budget 2020, DDT was abolished thus making dividend a taxable income for a taxpayer. If dividend income exceeds INR 5,000, the company is liable to deduct TDS u/s 194 for dividend on equity shares and u/s 194K for dividend on equity mutual funds.

Is it mandatory to show exempt income in ITR?

Yes. You have to mention all your incomes while filing Income Tax Return, be it taxable or exempt. There is a separate tab to show exempt income in ITR. You need to mention the nature of exempt income and the amount of income received during the year.

Which ITR should I file if I have earned exempt income during a year?

You can file ITR-1 if you have earned only exempt income during a year. However, if you have earned agriculture income exceeding Rs. 5,000 then you should file ITR-2.