Navigating PF Decisions: Should I Transfer My Account or Withdraw It During Notice Period?

Hi,

Currently, I am serving the notice period. Please advise on what would be more suitable for me - transferring my PF account from a Pune-based company to a Bangalore-based company or withdrawing the PF account.

Thanks,

All I am hearing is that when we transfer the account from one state to another, it involves a lengthy process. Although it is written as 60+45 days, there are cases where people haven't received their PF even after years.

Please tell me what the amount of time required is to withdraw the PF account and open a new one at the new company.

Better to withdraw the PF. Two years of PF value is not significant, and there is no interest rate. The pension criteria are also not very profitable for us. It's my opinion.

Hi,

Transferring your accumulated PF contributions from Pune to Bangalore will involve a lot of time, and we do not know exactly when the transfer will be effected. It is better to withdraw the amount from Pune.

Regards, Gangadhar

Hi,

PF contributions are not taxable if you have completed 2 years of service.

Regards,
Gangadhar

Keep the following as the base & decide:

1. The contribution that you made during the last 2 years—if it is on the higher side, it's better not to transfer.
2. If you are willing to avail of a pension in the future, the contribution you made so far doesn't play a more significant role, but the services are important because once you withdraw, you can't retain it back.

Regards,
R. Rathina Kumar

As per my opinion, you should withdraw your PF because transferring your PF from one state to another is a very lengthy and time-consuming process.

Regards,

Rohit Rana
Andheri, Mumbai.

The option lies with you. You can withdraw the amount, and the application can be submitted to the PF office after 60 days by filling FORM 19 (for PF Amount) and FORM 10C (for Pension Fund). Please follow up with your employer to ensure it is submitted to the PF office on time. The amount will be transferred to the bank account mentioned by you in the forms within a month from the date of receipt by the PF office. Alternatively, if you do not require the money now, you can opt for a transfer.

Transfer of PF Account

For the transfer of your PF account, you can fill out FORM 13, which will be endorsed by the company you are leaving and your new employer. They will submit the form to the local PF office. The PF amount earns you an interest rate of 8.5% p.a. In my view, it is advisable to get the amount transferred.

Regards,
Amit

In my view, you should withdraw your PF. Furthermore, if you want to save it for the future, you can make an FD of the same.

Hi,

It is better that you go for the transfer of PF accumulations to avail the EPS Pension benefits. Further, with proper follow-up, there should be no problem in getting the transfer of PF, even if it's interstate. PF money grows easily without any effort, and it's tax-free too.

Since your service period is two years, you are eligible for pension amount withdrawal. In your case, it is better for you to complete your notice period service, fill out the PF and EPS withdrawal forms, and submit them to the present employer for forwarding to the PF authorities (eligibility for PF and EPS withdrawal is two months from the date of leaving). The transfer of PF accumulation takes a very long period of time, even years. However, if you want, you can also withdraw PF accumulations and transfer your EPS accumulation to your newly joined company. The withdrawal of the PF amount is a totally tax-free income, and no income tax is deductible under the Income Tax Act.

Regards,
naresh

If you have all the requisite papers with you, getting the PF transferred shouldn't be an issue. It might take time, but the money will come to you eventually. Further, you will be accumulating interest on it as well. If all the documentation is in place, then generally there is no hassle.

Unique PF Number Allocation

These days, a unique PF number is allocated, which remains the same irrespective of changing companies or locations anywhere in India.

When to Withdraw PF

Furthermore, when there is no break between jobs, or when PF is provided in the next company as well, there is no sense in withdrawing it and starting a fresh one. For example, if I know I will leave my current job where I was contributing to PF and transition into entrepreneurship, or if I know I will take a break from work for some reason, then it is better to withdraw the PF. Otherwise, why lose out on interest and other benefits such as getting a loan, etc.?

PF Withdrawal and Pension Benefits

You can withdraw your PF because the pension benefit is only for those individuals whose gross wages are approximately ₹6,500/-. You should apply two months after leaving the service because the respective return will be submitted by the company to the PF department. The interest portion will not be affected in this regard, as the interest will be calculated in the month of February for the following year. The amount of pension and PF will be kept in your hands after the final settlement from PF.

If you are not interested in withdrawing after a continuation of 9.5 years, the 8.33% portion will be automatically accounted for in the pension, and this portion is not recoverable. Therefore, it is advisable for you to withdraw the full and final settlement from EPFO.

Regards

You will have to give an application mentioning that you do not wish to join any organization and hence you want to withdraw your PF amount. Otherwise, a gap of six months is considered normal within the state, as it takes paperwork from your ex-employer (balance statement and code, etc.) to send to the PF office and a new employer to submit their papers informing the PF office of their area, confirming you as their employee, and requesting them to transfer your balance to a new account. So, a six to nine-month time is very normal in interstate transfer.

According to me, you will not lose anything, but will gain if you withdraw the amount and deposit the same in PPF, thereby not losing income-tax relief.

Regards,
Dilip Upadhyay

Advice on PF Transfer or Withdrawal

I would advise you to get it transferred, as each year of P.F. contribution will entitle you to pensionary benefits after 10 years of service, which is the best scheme. Don't worry about any delay; it should not be more than 2 months if properly applied. Otherwise, while in a new job, you will have to contribute if eligible. Always try to contact the P.F. Office by phone in case of any problems. The numbers are available in your office or visit the website www.epfindia.com.

Regards

Hi,

Since the Family Pension Fund is in force in India, it is appreciable for you to transfer your Provident Fund & Pension Fund dues to the account allotted for you by your new employer. If you withdraw your Provident Fund dues, your Pension Fund seniority will be lost.

With regards,
Jagdish K

This is regarding your PF issue.

Considerations for Your PF Account

(i) We are not aware of how much money is lying in your PF account. If it is a substantial amount, I would advise you to transfer the PF amount to your new PF account. In this way, you would be able to save a substantial amount for your future requirements.

(ii) The PF amount is meant for your future requirements. Once you withdraw the amount, you won't be able to save the amount, as it is said, "Laxmi is always moving from hand to hand."

Regards

Hi, the PF transfer process is lengthy. Furthermore, if it is a state transfer, it will take more time to complete. For the long run, I would advise you not to withdraw the accumulated PF amount and instead transfer it to your new company. The interest rate you receive is 8.5%, which no bank offers.

Although the transfer may take some time, it is a secure process.

Regards,
Vishal R Ganapathy

Dear friends!

Kindly clear my doubt as well: I worked in my past organization for 3 years, but now, after working in a new organization for 3 years, I have not transferred my PF account. How can I transfer my PF account now?

Dear Kamlesh,

When it comes to Social Security, it is essential to transfer your PF account when moving from one state to another. Although the transfer procedure may seem lengthy, it is crucial for ensuring the security of your family in case of any unfortunate accidents.

I hope you understand the importance of this matter.

Thank you.

Hi, as per my knowledge, transferring is the best option. It may take months to transfer from one state to another, but you will receive it eventually. Please consider the pension scheme. Alternatively, you can withdraw the PF amount.

If you join another company, you may receive a new PF account number. However, after 2 to 3 years, if you need to withdraw the amount for a loan or personal reasons, you may not have the facility to do so because you need to complete a service period of 5 or 10 years (exact years are uncertain).

Please visit the website www.epfindia.com for more information.

Regards, Chandra Sekhar

Dear Friend,

If the amount is small, it is better to withdraw. The transfer of funds is a great challenge if it is not between Trust to Trust or at least Trust to RPFC. However, you may note that PF withdrawal for less than five years of service may be subjected to Income Tax.

Regards

The very necessity and aim of formulating the Employees' Provident Fund and Family Pension enactment is basically to provide future financial assistance to a working mass and to secure and provide for one's future needs in times of difficulty. Nowadays, employers are arranging pay packages in such a fashion to keep the BASIC + DA at the minimum. However, one should consider the FP pension aspect that a member gets based on his/her continuous service.

Considering the fact that the union labor ministry is studying FP pension formulation and is likely to be elevated in the near future, in my opinion, one should not withdraw PF accumulations prematurely unless it is financially necessary for an incumbent. Besides this, PF and FP accumulations are out of the preview of any attachments and IT deductions in the normal course.

Regards,
Arun Dixit