Can My Colleague Withdraw PF Right After Joining a New Company? Seeking Advice

Hi all,

I have one query regarding PF withdrawal. One of my colleagues has joined my company this week, and now he wants to withdraw his PF. However, as per the law, there has to be a 2-month gap between your current and last organization.

Regards,
Abhishek Singh

The person should apply for PF withdrawal only after 2 months of leaving the job and will get the money within 45 days of the application. Anyone who has worked even for a day in the organization is entitled to PF withdrawal.

Cheers,
Guru
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Dear Abhisekh,

You are correct. Then, what is your doubt? He can only apply after 60 days of leaving the organization.

Thanks,
J S Malik

Now in our company, he does not want to continue with PF deduction, whereas legally there must be PF deduction. He is saying he will give us a written declaration that he has never been a member of the PF fund, and he wants to have that part in his take-home salary. Will the declaration form work?

Dear,

You are correct, and no declaration as such is required separately. You only need to take a signature on Form 11, which is made for this purpose only.

Thanks,
J. S. Malik

Dear,

I also have a query about PF withdrawal. If a person withdraws PF from their last organization as per PF rules, does that PF amount come under taxable income or is there some exemption under the Income Tax law?

Mahender Singh

Hi,

I also have the same query regarding the PF withdrawal. Many of the PF application forms which we have signed for the employees have been returned, stating that the employee has not worked for a minimum of 6 months. My concern is that the money of the employee and employer is going to waste. Could anyone please suggest a way to address this issue?

Dear,

Regarding tax on PF withdrawal: Yes, if you have withdrawn your PF before superannuation, then it is taxable. On superannuation, PF withdrawal is not taxable.

Regarding withdrawal of PF before completing 6 months:
You will only get the withdrawal of PF, not the pension share. They may be making such remarks on Form 10C. PF authorities will make payment against Form 19.

Thank you,
J. S. Malik

Mr. Malik,

I saw your message stating that employees have an option not to opt for PF using Form 11. Could you please elaborate on this?

Regards,
Srini

Hello!

I have two queries. What is the minimum and maximum time limit for PF withdrawal? Does it also take four months if the employee's bank account is in an outstation?

Also, what important documents (like an experience certificate) should be collected from the company after filling up the Exit form?

Hello!

I have 2 queries. What is the minimum and maximum time limit for PF withdrawal? Does it also take 4 months if the employee's bank account is in an outstation?

Also, what important documents (like experience certificate) should be collected from the company after filling up the Exit form?

Regarding your query on PF withdrawal, it is advisable to keep track of the process at the local PF office and get updates from there.

Additionally, you should collect your relieving letter and clearance for all your financial settlements such as LTA, Bonus, etc. If you fall into a tax slab, you should also request Form 16.

Thank you!

Hi Sweta,

No, for claims, if you have submitted the necessary documentation in one go, it will take a minimum of 40 and a maximum of 50 days at most.

No one will collect the experience certificate from the employee. So, you better leave it at that.

Regards,
Pushparaj R.