Hello Community Members, I joined an organisation A in year Dec-2010 and left it in Aug-2014. In Aug-2014, i joined organisation B. I gave transfer request of my PF accumulation from PF account of A to PF account of B. It was done by mid of 2015. To my surprise, i just checked that EPFO has not transferred the full amount but there is still 20-25% left in that account. After 2016, i received no interest on that and not getting any option for online transfer of this amount to my existing company (probably it is dormant). I have two queries:
- If i withdraw this amount, will i be charged income tax as i worked less than 5 years in company A?
- Will i get the interest on this amount as it was due to EPFO mistake, it was not transferred earlier?
I have opened multiple grievances, but no appropriate reply is provided. They are just saying amount was transferred without checking any detail. I opened RTI, but again got no response.
Any appropriate response from the community members will be highly appreciable.
From India, Noida
- If i withdraw this amount, will i be charged income tax as i worked less than 5 years in company A?
- Will i get the interest on this amount as it was due to EPFO mistake, it was not transferred earlier?
I have opened multiple grievances, but no appropriate reply is provided. They are just saying amount was transferred without checking any detail. I opened RTI, but again got no response.
Any appropriate response from the community members will be highly appreciable.
From India, Noida
PROFESSIONALS AND BUSINESSES PARTICIPATING IN DISCUSSION
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Dear Harry,
Pls refer to attach EPFO Circular dated 21.05.2015 on
Amendment in Section 192A of the IT Act, 1961- Instructions for deduction of TDS on withdrawal from PF.
The exemption limit has been enhanced to Rs.50,000/- from earlier limit of Rs.30,000/-
Regards,
Suresh
From India, Thane
Pls refer to attach EPFO Circular dated 21.05.2015 on
Amendment in Section 192A of the IT Act, 1961- Instructions for deduction of TDS on withdrawal from PF.
The exemption limit has been enhanced to Rs.50,000/- from earlier limit of Rs.30,000/-
Regards,
Suresh
From India, Thane
1. - If i withdraw this amount, will i be charged income tax as i worked less than 5 years in company A? - If the amount is above Rs. 50,000/- - Tax is deducted at the rate of 10% if you have provided PAN Number and at highest rate if no PAN details are given. However, if you provide Form No. 15 G or H as applicable - no tax will be deducted.
2. - Will i get the interest on this amount as it was due to EPFO mistake, it was not transferred earlier? - Interest on the balance is credited by EPFO every year as per the statutory declared rate. You are eligible to get interest upto the previous month.
3. Grievances: - Have you utilised online grievance mode or offline. You need to escalate the grievance if it is not addressed. Generally EPFO responds to the grievance immediately. However, could be due to lockdown situation, it must have been delayed. Kindly follow up regularly by online mode your grievance.
From India, Mumbai
2. - Will i get the interest on this amount as it was due to EPFO mistake, it was not transferred earlier? - Interest on the balance is credited by EPFO every year as per the statutory declared rate. You are eligible to get interest upto the previous month.
3. Grievances: - Have you utilised online grievance mode or offline. You need to escalate the grievance if it is not addressed. Generally EPFO responds to the grievance immediately. However, could be due to lockdown situation, it must have been delayed. Kindly follow up regularly by online mode your grievance.
From India, Mumbai
It the a/c is >3 yrs old then may not be eligible for interest after 3 yrs. Pl.check it.
From India, Bangalore
From India, Bangalore
Dear Harry,
EPFO on submitting transfer application in Form 13, transfer the PF accumulations lying in PF Account to the new company where PF member has joined. While transferring the PF accumulations, EPFO send Annexure K to the new employer furnishing the details of Employee's & Employer's contributions & interest separately.
You may request your employer to provide you copy of Annexure K (generally epfo also forward copy of Annexure K to PF Member by post) which you can cross verify with the annual account statement of 2014-15 received by you thru EPFO office. If you notice any discrepancies and figure mismatch of statement and the Annexure K, write a letter to the Regional PF commissioner and bring it to his notice.
Generally transfer and withdrawal doesn't happen together, however, if it is the dept. mistake, they may allow you PF withdrawal. Pls note that EPFO doesn't deduct any TDS on transfer amount. Earlier there was no TDS on PF withdrawal upto 31st May, 2015. It is made applicable w.e.f.1st June, 2015 for settlement amount >30K and membership is <5 yrs.
Conclusion:
1. TDS is not applicable.
2. If short transfer is made erroneously, you should get the amount alongwith interest, provided you present your case strongly and convey them how irresponsible his staff is and also communicate that your grievances are not addressed.
3. INR 50K for TDS exemption is enhanced >2 years back.
4. No interest for dormant account >2yrs. is not applicable to you as it is EPFO's mistake.
Hope your query is answered in detail.
Suresh
From India, Thane
EPFO on submitting transfer application in Form 13, transfer the PF accumulations lying in PF Account to the new company where PF member has joined. While transferring the PF accumulations, EPFO send Annexure K to the new employer furnishing the details of Employee's & Employer's contributions & interest separately.
You may request your employer to provide you copy of Annexure K (generally epfo also forward copy of Annexure K to PF Member by post) which you can cross verify with the annual account statement of 2014-15 received by you thru EPFO office. If you notice any discrepancies and figure mismatch of statement and the Annexure K, write a letter to the Regional PF commissioner and bring it to his notice.
Generally transfer and withdrawal doesn't happen together, however, if it is the dept. mistake, they may allow you PF withdrawal. Pls note that EPFO doesn't deduct any TDS on transfer amount. Earlier there was no TDS on PF withdrawal upto 31st May, 2015. It is made applicable w.e.f.1st June, 2015 for settlement amount >30K and membership is <5 yrs.
Conclusion:
1. TDS is not applicable.
2. If short transfer is made erroneously, you should get the amount alongwith interest, provided you present your case strongly and convey them how irresponsible his staff is and also communicate that your grievances are not addressed.
3. INR 50K for TDS exemption is enhanced >2 years back.
4. No interest for dormant account >2yrs. is not applicable to you as it is EPFO's mistake.
Hope your query is answered in detail.
Suresh
From India, Thane
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PF Calculation Sheet To The Subscribers At the Time Of Provident Fund Withdrawal.pdf
Provident fund.zip
PROVIDENT FUND.rar