Should I Withdraw or Transfer My PF? Seeking Advice on Handling Delays and Deductions

Dear All,

My query relates to the withdrawal of PF amount. I was working with the Retail Company and about three months before shifted to an MNC. I worked there for exactly 1 year and 8 months and now would like to withdraw the PF amount.

Should I withdraw the amount or transfer it to my new PF account? If I withdraw, will there be any deductions as our retail company has its own trust?

I have also spoken to the operations team, and they have said that claiming PF would take time. They have also informed me that for the last 6 months, all the PFs are pending. Friends, suggest how I should proceed with it.

Thanks,
Shweta Jaitly

Hello Sweta,

With normal procedure, PF withdrawal takes 2 to 3 months. If you have a PAYSLIP, you can find your PF Account Number on the slip. Search for a valid PF number on the PF site: epfindia.com. For withdrawal, you need to submit Form 19 & 10C from your old company, enclosed with the last 2 years' 3A & SSN forms. For transfer, you need to fill out Form 13 from your current organization.

Regards,
Sameer

Hi Shweta,

First, make yourself aware of whether your company (retail) has deposited your PF amount with the PF authority or not. As you have mentioned that claims have been pending for six months, generally, if everything is fine, the claims should be settled within 90 days. Otherwise, the PF authority will have to pay a penalty for the delay, as far as I know.

Secondly, it would be better to withdraw the PF accumulation and start fresh since you are joining a new company.

Hope this is clear.

For more queries, you can email me at rajeevdixit1@rediffmail.com.

Cheers,
Rajeev Dixit

Thanks for your replies, Sameer & Rajeev.

I would appreciate it if you could help me with this. In our PF money goes to our own Trust, so it is not directly under the government. Would there be any tax deductions?

Please suggest.

Dear Shweta,

Yes, there would be tax deduction as you are withdrawing the PF within six months.

You will withdraw your PF after 2 months from the date of leaving the service. You are not able to withdraw your PF before two months from the date of leaving the service. You have to fill Form No. 19 and Form 10C after two months from the date of leaving the service. PT will be deducted from your PF withdrawal.

Dear Ms. Shweta,

If your company has its own trust, then you will receive your PF amount through that trust only. Our PF deduction is divided into two parts: PF and EPF. In the case of a trust, the company also has to deposit the pension amount to the government PF office, so that amount can be withdrawn from the PF Office. To do this, you need to fill out Form No. "10 C."

Don't worry, you will receive your PF amount.

Based on your input, here is the corrected version:

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As per my knowledge, if the money in the PF account is more than the best suggestion is to transfer the money rather than withdraw it.

If you want to transfer the amount, the steps will be:

1. The new company will open a new account number.
2. You should fill Form 13 (to transfer the amount from the previous employer to the current employer) to your current employer.
3. Your current employer should communicate with your previous employer and their PF office to transfer the amount from the old account number to the current account number, along with Form 13.

If you want to withdraw the money from the previous account:

1. You should fill Form 19 and Form 10C for withdrawal benefits. The previous employer should provide the authorized signature on these forms.
2. You should obtain bank clearance for your bank account number through Form E5.
3. Ensure that the previous employer submits all the above forms to their PF office along with proofs for your PF account money, i.e., Form 6A & Form 3A, and one more proof for joining and leaving the service, i.e., Form 5 & Form 10. If you submit everything correctly and follow up if possible, your money will reach your bank account early.

You mentioned that PF has been pending for the past 6 months in the earlier company.

a) If they have not paid money to the PF office for the last 6 months, the ex-employer should submit the proofs of whatever they have paid for your PF along with the forms.

b) Some people make regular payments but do not send Form 3A and Form 6A (to be submitted annually) to the PF office. If that is the case, ask them to prepare those pending Form 3A and Form 6A for you and submit them along with the forms.

Is it clear or confusing? I am replying in a hurry.

Regards,
Madhavi

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I have corrected the spelling, grammar, and punctuation errors in your input and ensured proper paragraph formatting for clarity and readability. Let me know if you need further assistance.

As Ms. Madhavi rightly said, the PF portions (both employer and employee) will only be maintained by the Trust, and Pension contributions (@ 8.33% subject to a maximum of Rs. 541/-) will be remitted to the PF Office.

It is always advisable to transfer your PF accumulations, as it is the only savings we normally make. For PF transfer, Form 13 needs to be submitted to your current employer. They will then send it to your previous employer (since it is a trust) and a copy to the PF Office, where the account is maintained.

If you wish to withdraw, you have to submit Form 19 and Form 10 C. If they do not settle it within a stipulated time (maximum three months), you have the right to raise the issue with the PF Office on Grievance Redressal Day (I think it is on Monday/Wednesday from 10 AM to 2 PM).

No tax deductions will be made from the PF settlement amount.

Regards,

A. B. Srinivasan

Dear Ms. Vrinda,

1. Form 19 is used for withdrawing PF amount (i.e., PF settlement form).
2. Form 10 C is used for withdrawing Pension amount. A member is eligible to withdraw pension contributions if their services are less than 10 years or their age is under 40 years. They can withdraw the pension amount.
3. Form 3A - PF Annual return statement - Employee-wise/monthly PF contributions should be furnished in the form. It will be like:

PF NO. MEMBER NAME: ---- --- Month Employee Contributions Employer Contributions Total Pension Contributions
4. Form 6A - Consolidated PF Annual return statement - Employee-wise. It will be like:

PF No. Member Name Total Employee Contributions Total Employer Contributions Total Pension Contributions A B Srinivasan

Yes, any PF accumulations withdrawn before 5 years of service is taxable. Incase your money is with RPFC then they don't deduct tax on the same and expect you to add the same in your total taxable income when your file your return and pay tax normally no one does the same hence you can take liberty here….but in case your money is with the trust most of the companies deduct tax at the maximum slab rate…again depend on company to company……hence don't assume its tax free unless 5 years are over as per Income Tax Act……….

Hi,

Please check whether your company (retail) has paid the PF monthly or not. Once the withdrawal forms are submitted to the PF office, you will receive the money within a minimum of 90 days, by check or to your account.

Dear Sir/Madam,

Please transfer it to a new PF account if possible; otherwise, withdraw the PPF from the PPF department. For PPF withdrawals, the minimum time limit is 3 months after submitting the PF form.

Thank you.

Hi Shweta,

First, you have to confirm whether P.F. deducted from your salary is deposited in your P.F. account by your employer. If it is deposited, then no issues. Next, you have to fill out Form 19 & Form 10-C. Along with these forms, you have to submit 3A for the period April 2007 to March 2008 and April 2008 until the month you worked.

Regards,

Nimish Joshi
9969526325

Dear Swetha,

It is wise to transfer your PF to the current PF account with the MNC. Accumulating PF service for more than 10 years will make you or your family eligible for a pension after you reach the age of 49.

Dally - HR

Hi Shewta,

Interesting thread of discussion…and would like to thank the members for sharing their views.

Its has been my experience that transfer of PF accounts takes inordinate delay and if you are need of funds – you may proceed to with the formalities for withdrawl with forms 19 & 10 – C as explained by my colleagues.

Should your withdrawl get delayed more than 45 - 60 days then you can avail the services of the following link to register your complaint.

gov.in

Regards,

Rajat