EPFO Form 13 Update: What Indian Taxpayers Must Know
In a major compliance shift, the Employees’ Provident Fund Organisation (EPFO) has updated Form 13 to separately capture taxable and non-taxable PF components. This change, aligned with Income Tax Rule 9D, ensures accurate TDS deductions on PF interest — a critical update for employees transferring PF accounts.
Let’s simplify what this means for you.
Why EPFO Updated Form 13
- Budget 2021 introduced a tax on PF interest if annual employee contributions exceed ₹2.5 lakh (or ₹5 lakh if there’s no employer contribution).
- To implement this rule, CBDT inserted Rule 9D under the Income-tax Rules, 1962.
- EPFO’s updated Form 13 now separates your PF transfer amounts into:
- Taxable component (interest on excess contributions)
- Non-taxable component (normal PF savings)
Key Changes in New Form 13
| Area | Old Form 13 | New Form 13 (2025) |
|---|---|---|
| Tax Treatment | Single PF balance transfer | Split into taxable & non-taxable |
| Compliance Alignment | No disclosure of interest taxation | Aligns with Rule 9D reporting |
| Impact on Employees | No TDS clarity | TDS will be calculated separately |
| Employer Responsibility | Basic details only | Separate entries mandatory |
How Does This Impact You?
- If your PF contribution crosses ₹2.5 lakh/year, interest earned on the excess will now be taxable.
- At the time of PF transfer using Form 13:
- The taxable interest portion will attract TDS as per Section 194A.
- The non-taxable portion continues to enjoy full tax exemption under Section 10(11).
Step-by-Step Guide to the New PF Transfer
- Request Form 13 from your employer or download from EPFO portal.
- Fill details separately for taxable and non-taxable amounts.
- Submit the form online through your employer login or self-service portal.
- Track transfer status on the EPFO member portal.
- Update UAN records once transfer completes to avoid mismatch during ITR filing.