9871103011
Private Consultant On Labour Laws
Rameshg28
Payroll Specialist
+2 Others

Hi,
I had a PF account with my first company 14 years ago. Now it shows as inoperative account when I checked for the status online. I have a new PF account with my recent employer whom I left a few months ago. I left this new employer just 3 months short of 5 years. I am not working anywhere now.
Now if I withdraw PF from this new PF account, there\'ll be tax deduction as I had not completed 5 years. To get around that and make up for the 3 months, can I transfer my old PF account to this latest one so that I will fulfil the mandatory 5 years of employment?
Please advise
Thanks and Regards
Woodcutter

7th July 2013 From India, Thane
Hi,
You can get the same transfer through form-13.Though the RPFC does not deduct.however if your company is having in house PF i.e PF trust then they will deduct tax.
You can get the fund transfer by attaching id proofs and some supporting docs for that company.
Regards
Deepak
7th July 2013
Hi Deepak Sir,
Thank you so much for your help!
But I ask you the same again just to be sure.
My recent company doesn't have a PF trust of its own. It deposited the PF amount regularly with RPFC only. I left my recent company in December 2012. To be eligible for tax deduction on this new PF amount withdrawal ( not including the previous deposits done 14 years go by first employer), I should have done 5 continuous years of service which I did not. There is a short fall of 3 months. My first company also deposited the PF amount with RPFC only. Since I already left the recent employer and not working with any new employer now, Am I still allowed to transfer my old PF account to this new one just to technically satisfy the mandatory rule of minimum 5 years of PF deposits?
Regards
Woodcutter
7th July 2013 From India, Thane
Hi Deepak Sir,
I would like to add little more here as to why I had to leave my recent company.
My recent employer thought it's of no use to keep me on bench without a project, and hence asked me to resign on the assurance that I would get 3 months pay though I leave the same day. So I did the same. Thereafter, as promised, my recent employer gave Full & Final settlement for the next 3 months. But I don't think the employer deposited my PF amount with the RPFC for the next 3 months. Had it been so, I would have technically completed 5 years of continuous service and be eligible for tax deduction on PF withdrawal.
Kindly advise
Regards
Woodcutter
7th July 2013 From India, Thane
Dear Woodcutter,
Yes, you will very soon able to the get the facility of online transfer of PF accounts and consolidate them.The Employees’ Provident Fund Organization (EPFO) has been contemplating from time to time to improve the services available to the PF subscribers. Sh K K Jalan,who have recently taken over as Central Provident Fund Commissioner, has assured that his organization will very soon facilitate on line transfer and consolidation of PF accounts of the PF members.
I am attaching a newspaper clipping appeared in Mint dated July 5, 2013 for the information of the members.
BS Kalsi
Member since Aug 2011
8th July 2013 From India, Mumbai

Attached Files
Membership is required for download. Create An Account First
File Type: pdf EPF-On line transfer of Acconts.pdf (62.1 KB, 928 views)

Dear BS Kalsi sir,
Thank you for your help!
I have a doubt though. I also read the attachment you kept. To transfer an old PF account to a new one, the member should get it done through either current employer or previous employer. But in my case, both are previous employers. Will they still show any interest in processing my transfer request? Is it still allowed in this situation? Or should I join a new company now just to ensure both these 2 PF accounts get transferred to the future one?
Kindly advise
Regards
Woodcuttera
9th July 2013 From India, Thane
Dear Woodcuttera,

I do not know why you have expressed your doubt as to whether previous employers would show any interest in processing your transfer request. I suggest to you wait for couple of days so that the EPF Deptt. issue the detailed instructions to all the concerned persons. Once these instructions are issued, the employers those who are registered with EPFO will be duty bound to follow the orders.You should not have any doubt because now a days we have no. of channels to register our complaints for its redressal.

If you are not working anywhere you can apply for its withdrawal through your previous employers directly.I do not understand as to why have mentioned that tax deduction is available to the members, only those who have completed 5 years of employment.I have no knowledge of such provisions existing in the EPF Act. As far my knowledge goes there is no income tax on the withdrawal of PF.Only I know that to be eligible for pension,one should complete ten years of continuous service.

I would request seniors to correct me, if I am wrong.



BS Kalsi

Member since Aug 2011
9th July 2013 From India, Mumbai
Dear Sir,
There is a provision in income tax act which request the individual to pay tax on PF withdrawal if they have not completed 5years of service. For sure PF department will not do TDS deduction as it is the liability of the individual to pay tax.
So if you have not merged the PF of previous Service before withdrawal then your liable to pay tax. I am not sure how you will merge both the PF if your not working. Some senior in this group has to help you in this activity.
Regards,
Ramesh G
10th July 2013 From India, Chennai
Dear Ramesh G,
I am grateful to you for correcting me and educating me on the provisions of income tax applicable for withdrawal of PF before completion of 5 years.I have checked up the provisions existing in the Income Tax Act,1961.
BS Kalsi
Member since Aug 2011
10th July 2013 From India, Mumbai
Dear Kalsi sir and Ramesh sir,
Thank you so much for your timely help in clarifying my doubts!
I just checked with PF department and they will not deduct any tax.
I don't think I have to include my PF withdrawal money in my IT filing.
So I will withdraw now
Thank you so much again
Regards
Woodcutter
20th July 2013 From India, Thane
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