Is It Necessary to Withdraw PF When Changing Jobs? Understanding Transfer and TDS

Dear All,

One of my friends is working in a Bombay-based company. Before this, he was working with an Indore-based company, and his PF account is also in Indore. My question is, is it necessary to withdraw the PF amount? His previous duration was only 2 years. Will he get the full PF amount, or will TDS be deducted from his account?

If he wants to transfer the PF amount, what is the procedure? Please guide me because he has asked me the same.

Regards,
Janardan

Your friend can either transfer the PF account or withdraw it. If he transfers the account, his service with the previous employer will automatically become pensionable service. For withdrawing the amount, he has to submit two forms, namely, Form 19 for EPF and Form 10C for Pension Fund contribution. To withdraw the funds, the forms need to be attested by the previous employer. If the previous employer cannot be traced or refuses to sign, the forms may be signed by a government gazetted officer or a Bank Manager.

On the other hand, if he chooses to transfer the account, he has to submit Form 13, which is to be sent through the present employer only. All these forms are attached.

Regards, Madhu.T.K

I heard that if the employee withdraws his PF amount before completion of 5 years, TDS of 30.91% is to be deducted from his account. The only solution to save the amount is to transfer it from one account to another. However, the main problem is determining which PF account number needs to be activated since he is currently working in Mumbai but his previous organization was located in Indore.

Regards,
Janardan

Hi Madhu,

I believe you can help me as the case is very similar to the one above. Please read the below:

1. Please tell us the PF Transfer Procedure in case of exempted as well as the unexempted establishment?

2. Can a company (unexempted establishment) situated in Bangalore, Karnataka, on behalf of the employee, ask his previous employer company (unexempted establishment) located in Jaipur, Rajasthan, to forward Form 13 for the transfer of PF accumulations and prepare the Cheque/DD of the PF accumulations standing to the credit of such employee and send these to the company (unexempted establishment) situated in Bangalore, Karnataka? In my opinion, the company (unexempted establishment) located in Bangalore, Karnataka, has to send the application to the Regional PF Commissioner in Jaipur, Rajasthan, using Form 13 to transfer the PF Accumulations to the new PF Account with the Regional PF Commissioner in Bangalore, Karnataka. There is no role of the previous employer in this process; is it so? If yes, can we return the application to the company (unexempted establishment) situated in Bangalore, Karnataka, stating that we are also an unexempted establishment, and the same shall be sent directly to RPFC in Jaipur, Rajasthan.

3. Please review the documents that instruct the previous employer to complete the formality for the transfer of PF Accumulations. Page 001 uses the EPFO Logo; is it a format from EPFO? Kindly suggest the requirements.

Please respond with your valuable comments and advise ASAP.

Anurag Jain

Dear Mr. Anurag,

I have not come across such kind of a format. I will get back to you after confirming the genuineness of the form. I hope that if the formalities are to be completed by the previous employer, it will lead to unnecessary delays by employers who may even retaliate against employees who have left.

Regards,
Madhu.T.K