Regarding PF Deduction - Pf Account

Hi Friends,
I am currently working in a pharma company and have a PF account. But if i change my job and withdraw the entire amount of PF and Pension, will it be compulsary for me to be member of PF fund, if i dont want to be.
Regards,
Surya

Hi Friend,
If you withdraw your PF from your current PF account then it will not be necessary to become a member of PF (But if ur basic is more than the prescribed limit)
Regards,
Rajeev Chaudhary

hi surya
either withdrawing or continuing PF is left to you. But PF is a social security scheme. It is a saving that you accumulate over a period of your service. No matter whether it salary limit or more than your ceiling. considering savings aspects, and for long term future, it is better no to withdraw your pf when you go for another company, rather you transfer pf.
regards
R Devarajan

Surya...If you are planning to withdraw your PF....for your information...it will attract Income Tax on the Amount. You are not free to chosse if you want to be a member of PF Scheme or not...companies are legally binded to deduct the PF. So, I am sorry...you are not free to make a choice.
Regards
Sanjeev Sharma
(Blog: http://sanjeevhimachali.blogspot.com/)

hi sanjeev
i am devarajan here, i am not clear in your explanation on Choosing PF, that you are advising Mr surya. why you want to use the term choose or not to choose pf. consider it as a savings aspect, it benefits, contribution both from employer and employee. So surya, be clear do not withdraw pf when you shift from one company to another, unless if there is any constraint or urgent funds requirement.
regards
R devarajan

Devrajan...I was answering Surya's query on "will it be compulsary for me to be member of PF fund, if i dont want to be". For that I mentioned that he is not free to choose that. It is legal binding on companies to deduct PF and there by give Social Security to its Employees.
Regarding, withdrawal of PF...I said...if he wish to..he can withdraw his PF but that will attract Tax.
I hope I am clear now.
Regards
Sanjeev Sharma

hi
you are right sanjeev, hope we both have given clear and precise answer to surya.
Also mr surya, tell us both whether you are satisfied with our answers, if not, feel free to ask us.
devarajan

dear surya,
p.f deduction is mandatory if your basic is less than 6500/-.
Above 6500/- it's optional so you can decide accordingly.
Regards
Gitanjali Katoch

Hi Surya,
Unless ur current employer is not registered with the PF authorities you will not be getting ur PF deducted. Also if your basic salary is less than 10000 per month, you will not be falling under the PF purview.
Hope this solves your doubts :P
Cheers
Manmeet

As per the PF Act, first requirement is that your firm should be registered under the Act. If the firm is registered under the act than every employee employed by the Firm is eligible for PF and his PF is bound to be deducted unless and untill he meets the following two requirements under the Act:-
1. His basic salary is more than Rs. 6500.00
2. He gives a declaration in Form - 11 for not opting for any PF deduction.
If he meets the abovementioned requirements than only he is not liable for PF deduction.
Still any confusion? Get back to me.
Thanks
Aditya Gupta