HI,
I worked in an organization for 4 yrs and 10 months. I then quit and currently do not work. I opted for withdrawal of my PF. Since I did not complete 5 yrs of continuous service 30.9% tax was levied on my net balance PF amount. The amount deposited to my account was after withhelding this tax amount. Also it was informed that 8.33% of employer PF is paid towards pension scheme. I would like to know
1) Is 30.9% tax applied on the net balance amount ie. both the employee and employer PF contribution or is it on the employee interest and the employer contribution amount?
2) Is there any way we can claim this amount?
3) What is the eligibility to get the pension fund amount?
Kindly clarify
Thanks.
From United States, Cranston
I worked in an organization for 4 yrs and 10 months. I then quit and currently do not work. I opted for withdrawal of my PF. Since I did not complete 5 yrs of continuous service 30.9% tax was levied on my net balance PF amount. The amount deposited to my account was after withhelding this tax amount. Also it was informed that 8.33% of employer PF is paid towards pension scheme. I would like to know
1) Is 30.9% tax applied on the net balance amount ie. both the employee and employer PF contribution or is it on the employee interest and the employer contribution amount?
2) Is there any way we can claim this amount?
3) What is the eligibility to get the pension fund amount?
Kindly clarify
Thanks.
From United States, Cranston
For getting pension you should have completed 10 years service. For withdrawal benefit before ten years, you are suppose to get the full amount both the share of employee and the employer. Pension Fund is withheld only in cases where you opt for Scheme Certificate in lieu of withdrawal benefit. Please3 contact the EPF Office for clarification in this regard.
Regarding tax deducted on source on EPF withdrawal also, I am not aware. Please verify the letter in this regard from the EPFO.
Regards,
Madhu.T.K
From India, Kannur
4193Regarding tax deducted on source on EPF withdrawal also, I am not aware. Please verify the letter in this regard from the EPFO.
Regards,
Madhu.T.K
From India, Kannur
Dear virgoindia,
EPF account and pension fund account are different. Hence it is not possible to withdraw these two as a consolidated payment. Withdrawal benefit from pension fund for 5 years is, 5.02 (factor as per Table D for 5 years) x last drawn salary.
Amount which can be withdrawn from EPF is, Total amount (both employee & employer contribution) - pension contribution. Interest will be monthly compounded on this amount.
Abbas.P.S
From India, Bangalore
EPF account and pension fund account are different. Hence it is not possible to withdraw these two as a consolidated payment. Withdrawal benefit from pension fund for 5 years is, 5.02 (factor as per Table D for 5 years) x last drawn salary.
Amount which can be withdrawn from EPF is, Total amount (both employee & employer contribution) - pension contribution. Interest will be monthly compounded on this amount.
Abbas.P.S
From India, Bangalore
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