Struggling with PF Transfer Issues and Tax Concerns: What Are My Options Now?

Dear all, I am a new member of this forum, hence forgive me if I am asking a question that might have been answered. I worked for a company, let's say X, in Bangalore, which has a PF account with RPFC, for 2 years and 2 months. Then I joined Y, which has its own PF trust. I tried transferring PF from X to Y, which never got transferred. After about 2 years at Y, I joined Z and worked there for close to 2.5 years. Throughout my time at Y and Z, whenever I followed up with X about the fund transfer, I was told it was under process.

Now, I filed an RTI query and discovered that there is an issue at RPFC. They claim their records show the fund was transferred to Y, but they are unable to trace the funds and want me to reapply. Y has confirmed multiple times that no funds were received.

For the past 2.5 years, I have been an independent consultant, so I have no active PF account to transfer the PF now. Also, my PF is currently with all three companies, and now I realize that any withdrawal will be taxed, which will be a significant amount.

Seeking Advice on PF Transfer and Tax Exemption

Can someone suggest the best option available for me?

1. Can I get tax exemption because for almost 2 years and 8 months now, I have not been an employee anywhere?

2. I could not transfer the PF into one account due to some unknown issue at RPFC, which is not under my control. Can I get tax exemption?

3. Should I take up a job or wait for a few more years until I am part of a company where I will start receiving a salary and hence have a PF account, at which time I can retry the entire process and hope things go smoothly?

I am also wondering if I can take RPFC to consumer court.

Any guidance in this regard is greatly appreciated.

Thanks and regards,

-Vishwa.

As stated by you, EPF accumulation withdrawn is subject to tax. I will clarify that no tax liability is incurred on the withdrawal of EPF/EPS accumulation.

Withdrawal Process for Consultants

You mentioned that you are currently a consultant and do not have an active EPF account. If you wish to withdraw the same, you need to follow the process outlined below, which will also address your query regarding tractability:

- Fill Form 19 & 10C for establishments whose EPF/EPS accumulation is with the RPFC, duly attested by the competent authority of that establishment, and submit the forms to the related RPFC.

- For those whose EPF accumulation is with the trust, you should contact the establishment with your bank A/C no. For EPS accumulation, you only need to fill Form 10C for withdrawal.

The forms are enclosed for your reference.

Thanks & Regards,

Sumit Kumar Saxena

Thanks for your message. I did not quite understand your first point, though. I have tried the same steps you mentioned for the withdrawal of PF. The company that has an account with RPFC says I need to add the amount I get after withdrawal to my annual income and pay tax according to whatever slab it comes to. However, the other company, which has its own trust, is not yet very clear on how they want to go about it, but it looks like they want to go through older Form 16s, then change the taxable income and all that. I am not sure if they want to do a TDS of the tax amount they arrive at.

That is why I am still trying to find out if there is a way I can somehow get PF from all these accounts to one single account.

Regards,
Vishwa.