Hi sir,
I left my last company on 15th April 2011. After that due to some health issue, I could not take employment anywhere. and i did not withdraw my PF. My last salary/pf credit happened in march 2011. But while working in this company i applied for a PF transfer from my ealier company, that took place around February 2012. Now.as per the dormant PF rule, I am wondering whether interest would stop on my PF account from march 2014?? Or will it be considered active because a PF transfer happened in between?? Now I want to withdraw this PF amount. What is the process??
Thanks a ton .
Rama Krishna

From India, Hyderabad
janardan_raccha
83

Sr. HR Team Member
Dear Rama,
As per the last notification issued (it might be issued on 01.04.2011) by Employees Provident Fund Organization, all those who have been left their employee provident fund accounts dormant for more than three years, after changing jobs or retirement, will soon stop earning interest. An active PF account is mandatory to get avail the interest from the EPFO. However after three years of inactive account, the PF balance will stop earning interest.
For example if an employee’s last PF amount deposited in his account on 01.04.2011, he will earn interest on total accumulated funds till 31.04.2014.
Secondly your previous funds is been transferred in your existing account you are not liable to get interest.
Finally for withdrawing your accumulated fund you need to submit Form No 10C & 19 to your HR / Compliance team for withdrawal of your Pension & PF funds respectively.
Regards,
Janardan

From India, Mumbai
Thanks Janardan.
You mentioned..that previous fund is transferred..not eligible for interest..??
Please elaborate??
from when, i am not eligible for interest??
Is it like..if somebody transfers previous amount..they are not eligible for interest??

From India, Hyderabad
Also, I was reading this on the web..if i withdraw PF now..ie before 5 years of continued service..there will be tax...I worked from 2006 june to 2009 june and then from 2010 march to 2011 march. so if i put my pf withdrawal form now.will i be subjected to taxx?? I am not working currently..Thanks..
From India, Hyderabad
Somebody please clarify my queries...
1. if i go for pf withdrawal now, will i be subjected to reversal of tax benefits i enjoyed earlier?? I am not working currently.
2. from when exactly interest in my pf account would have stopped?? after the completion of 3 years or at the time i transferred earlier pf account balance??
Thanks a ton...

From India, Hyderabad
essykkr
87

Statutory complaince/Labour & Employment law/law
Implication of income tax before completion of 5 years on withdrawal of PF fund is applicable only in case of PF Trust, if your employer is contributing and complying with RPFC, than no tax shall be applicable. But if it was a PF trust mainted by your Employer than tax shall be applicable withdrwal on less than 5 years.

essykkr
87

Statutory complaince/Labour & Employment law/law
It has already been explained above, the recurring of interest shall be stop after 3 years from the date, when the last contribution in your account was submitted. In the case you have mentioned, the PF contrbution of service from 2006 to 2009, was transfered by you in new account i.e account of service period from 2010 to 2011. till the date of transfer interest was payable on your earlier account, but after transfer to new account, the interest shall be stoped from the day 3 year from your last contribution filed in year 2011.

As long as your PF amount is lying with the PF authorities, the interest will be paid up to the withdrawal date. Hence no worry.
From India, Hyderabad
This 3 year rule is placed ..right??
No interest on dormant EPFO accounts now - The Times of India

From India, Hyderabad
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