A person worked in company 'A' for 12 years, and then in company 'B' for 1 year before returning to company 'A' where he has been working for 1.5 years now. When he returned to company 'A' for the second stint, a new PF account was opened. This person had regular, uninterrupted service and now desires to withdraw the PF money lying in his earlier account with company 'A' and with company 'B'. Can he do so, and if yes, under the provisions of the EPF Rules? What forms should he use, and what is the taxability of the amount withdrawn.
Thanks in advance,
Sanjay
From India, Gurgaon
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Thanks in advance,
Sanjay
From India, Gurgaon
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This is a little bit confusing. First of all, I just want to know did that person transfer his account to Company B and even to A when he again moved to A?
However, if it has been done, then he can withdraw his PF amount to a certain extent that we call Loan & Advance from the PF fund, for which he has to fill "Form 31."
But if he has not transferred his PF account from B to A and vice versa, then:
1. From Company A: As he has completed his services for more than 10 years, i.e., he can withdraw and get PF contribution except the pension fund contribution, i.e., 8.33% of the employer's contribution. After 10 years, one will become eligible for the pension, which will be payable after reaching the age of 58 years. (One needs to follow some procedures for enrolling under the pension scheme.)
2. From Company B, he can withdraw both the amounts (EPF + Pension Fund).
For withdrawing the amount:
- In the case of Company A, one needs to fill Form 19, Form 10, Form 5, Form 3A (issued by the company containing details of the PF contribution for the current financial year), and SSN form.
- In the case of Company B, Form 19 and Form 10C along with Form 5, Form 10, Form 3A, and SSN form.
Note: The whole amount would be tax-exempted.
For further clarification, please let me know.
Regards, Yajuvendra Singh Bisht
From India, Delhi
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3However, if it has been done, then he can withdraw his PF amount to a certain extent that we call Loan & Advance from the PF fund, for which he has to fill "Form 31."
But if he has not transferred his PF account from B to A and vice versa, then:
1. From Company A: As he has completed his services for more than 10 years, i.e., he can withdraw and get PF contribution except the pension fund contribution, i.e., 8.33% of the employer's contribution. After 10 years, one will become eligible for the pension, which will be payable after reaching the age of 58 years. (One needs to follow some procedures for enrolling under the pension scheme.)
2. From Company B, he can withdraw both the amounts (EPF + Pension Fund).
For withdrawing the amount:
- In the case of Company A, one needs to fill Form 19, Form 10, Form 5, Form 3A (issued by the company containing details of the PF contribution for the current financial year), and SSN form.
- In the case of Company B, Form 19 and Form 10C along with Form 5, Form 10, Form 3A, and SSN form.
Note: The whole amount would be tax-exempted.
For further clarification, please let me know.
Regards, Yajuvendra Singh Bisht
From India, Delhi
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TAXABILITY ON EPF WITHDRAWAL.docx
Early PF withdrawal won’t be easy.pdf
Steps to transfer PF amount.jpg