Confused About PF: Should I Withdraw or Transfer My Old Account for Tax Benefits?

Dear All,

I have been working with a Multinational Pharma company for 2 years and 8 months. Previously, I worked with an Indian Pharma company for 1 year and 3 months. When I joined my current company in Jan 2006, I did not transfer or withdraw the PF. As my PF number was not appearing on my salary slip from the old company, I inquired about it with HR. They informed me that the amount deducted from my salary every month was deposited in a trust and provided me with the PF Number. Both my PF accounts are in the State of Maharashtra.

Should I withdraw the old PF or transfer it to my new company's PF account? If I withdraw the old PF, is it taxable? If I transfer it to my new PF account, will it be considered for this year's tax deduction? I would appreciate a proper answer to these questions.

Thank you in advance.

Vivek.P

Mr. Vivek,

First of all, you have to get the old PF account number. If you know the employer's account number, you can get it from the website itself. Even otherwise, it should be possible, but most of the PF sites remain unupdated. Therefore, it is practical to get the number personally from the office of the Employees' Provident Fund Organisation of the area of your previous employer.

If you want to withdraw the amount, you can do so by submitting forms 19 and 10 C to that office through the previous employer. Otherwise, send form 13 through your present employer for the transfer of the amount. If your previous employer cannot be traced for their signature in forms 19 and 10 C, it is better to transfer the accumulations to the present PF. In both cases, the PF amount will not attract tax.

Regards,
Madhu.T.K

Dear Madhu,

Thank you for your guidance. Sir, I still have 2 of the old salary slips with me. One shows no PF No, whereas the other shows PF No 140. When I contacted the HR after my resignation, the PF number given by them was MH/1565/678. Which one will be correct, and how can I check it? Whom should I approach to get the details of my old PF?

Expecting your guidance.

Regards,
Vivek.P

Hi Vivek,

Following PF No. MH/1565/678 is valid. Please contact your previous employer and get the authorized signature on Form 19 & Form 10C to surrender your PF amount. It will take 30 days from the date of submission of the forms to have your money deposited in your account. Sometimes there might be delays as well.

Hello Prathima,

Thank you for letting me know that my PF A/C is valid. Please let me know how you were able to verify that my PF A/C is valid. Once again, thanking you for your advice.

Regards, Vivek.P

Dear Vivek,

To know whether your PF number is correct, click on the following link: [Employee Provident Fund Organisation (EPFO), Chennai](http://epfindia.nic.in) *(link updated to site home)* ([Search On Cite](https://www.citehr.com/results.php?q=Employee%20Provident%20Fund%20Organi sation%20EPFO%20Chennai) | [Search On Google](https://www.google.com/search?q=Employee%20Provident%20Fund%20Organisatio n%20EPFO%20Chennai))

Fill the required fields like State, Office location, Company code (in your case 1565). Your company name will be displayed if the code is correct.

Try it.

Thanks

Sandeep,

Only the employer can calculate and give you a rough picture of your balance in PF. For that matter, you can also have a rough estimate by calculating the amount they have deducted from your salary so far since day one. Additionally, include the employer's contribution. Add both amounts and factor in a nominal interest rate of about 8%.

Dear Vivek ji,

You mentioned that you are working in an MNC. Is the firm currently in operation? If so, could you please reach out to your employer to obtain the PF account number? The same process should be followed with your next employer.

If the duration of your employment has exceeded one year from your resignation date and you wish to withdraw the PF, you will need to provide a security bond on non-judicial Stamp paper along with Form 19 & 10C. This procedure must be completed separately for each period of employment.

I recommend transferring the PF amount to your current employment to ensure continuity in your pension benefits without losing any service credits.

Regards,
PBS

Dear Sir/Madam,

My PF Account number is MH/45479/14. I resigned from my previous job on the 31st of November 2007. I completed my PF withdrawal formalities with the cooperation of my previous company, Printech Peripheral Pvt. Ltd., on the 1st of January 2008. I also submitted the second red form before 4 months, but my PF amount has not been cleared yet. Could you please inform me about the status of my PF withdrawal amount?

Thank you,
Mahesh Wadekar

Mahesh,

Follow up with your previous employer. Otherwise, look for the status on the Employee Provident Fund Organisation (EPFO), Chennai <link updated to site home> (Search On Cite | Search On Google).

Probably your application might have been returned to your employer in case of any pending documents like Form 3A.

Dear Mr. Wadekar,

If you are sure that your claim was submitted in January 2008, it is high time that your money is credited into your bank account directly. If not, you must take a trail of your claim. First, find out which PF office is your nodal office: BANDRA/KANDIVALI/THANE. Approach your Previous Company's Consultant OR Visit the site www.epfindia.com. Go to the EPFO directory and try the Commissioner's number given against the respective name.

MOST effective tool: File an application under RTI along with Rs. 10/- pay order in favor of The Regional Provident Fund Commissioner, Mumbai. This application should be submitted to the Proper PF office where your Company's PF account is maintained. You can seek help by emailing me at pmrppathak@yahoo.com.

Can you please help me with the entire procedure of VRS? What is the formula for calculating VRS amount to be paid to an employee? How can an employee save tax on the amount? What are the prerequisites for VRS? What is the minimum & maximum amount to be paid for VRS? Any legal implications?

Hi Vivek,

I would advise you to transfer your old PF amount to your new account. Make a point that PF should always be set up for your dependents, such as your mother, wife, and children. It is the savings made for your family members and can be very useful in the days to come. You can take loans on your PF, and the best rates are offered by the PFO compared to other banks. Therefore, my sincere advice would be to transfer the amount once the previous employer furnishes all the details.

Dear Sir,

I submitted my PF form on 14th June, and on 3rd October, I called the PF office to inquire about my PF amount. The staff informed me that my check was ready on 3rd October, but I have not received the PF amount yet. I tried calling the PF office again, but no one answered the phone. I kindly request you to please send my PF check as soon as possible. My PF number is MH47808/6563.

Thank you,
Sunil Sharma
Jaipur