Understanding PF Withdrawals: Can You Withdraw Multiple Times and What About Taxes?

Hi, could anyone please clarify my doubts?

Withdrawal of PF During Employment

1. Can a person withdraw (using Form 19 and 10C) PF multiple times during the course of their employment?

Tax Implications on PF Withdrawal

2. I believe if someone withdraws the PF amount before the age of retirement, tax will be incurred on the withdrawn PF amount. Is it true? If yes, what is the tax rate?

Multiple PF Accounts

3. Can a person have more than one PF account? I believe NO. Right?

PF Account Management: Key Points

A person can have only one active PF account. If you are switching from one company to another, you should either withdraw your PF amount and close the account or transfer the PF account. Moreover, as far as I know, it is not subject to any tax deduction.

Hope your queries would be solved.

The tax rebate on PF is provided only one time. If you withdraw your PF from your last company instead of transferring it, then a tax rebate will be given to you. However, if in the future you again withdraw PF from a different company, no tax rebate will be given.

Please let me know if you need any further clarification or assistance.

Thanks, Prerna and Mukta. In case of job switching, I believe I can use Form 19 and 10C to withdraw the PF through the previous employer and can open a new PF account through the new employer (do I need to fill any form in this case?) and get going. I believe I can use the same process again if I am switching my job again. Right? Please confirm.

Yes, you have to fill out a new PF form with the new employer every time you switch jobs and close your previous account.