Confused About EPF: Should I Transfer or Withdraw After Changing Jobs?

Dear,

Actually, I left my previous company a few days ago and also joined a new company. I am wondering what would be better for me, to withdraw or transfer my PF.

My job period was 3 years, with a basic salary plus DA of 9000. Could you please let me know the total PF calculation?

Thank you.

Dear friend,

It is advisable to transfer your PF to avoid paying Income Tax if your total accumulation is Rs. 30,000 or above.

Abbas. P.S.

If the PF contribution is Rs. 1000 per month, then the total accumulation will exceed Rs. 30,000 for 3 years of service. Hence, TDS should not apply. However, it is always advisable to transfer PF rather than withdraw.

Advice on PF Withdrawal vs. Transfer

It's advisable to transfer your PF emoluments rather than withdrawing them. Your PF accumulation earns a healthy interest annually and is tax-free subject to certain conditions. Over time, you also become entitled to a regular pension if your contribution period is 9 years and 6 months or exceeds it. If you retire or wait until you attain the age of 58 years (after becoming entitled to a pension), you stand to receive a full pension for the rest of your life. Not to mention the benefits your dependents will receive in terms of a pension if something happens to you. Therefore, it's always advisable to transfer your PF account.

However, if you urgently need this money, then you can withdraw it.

Regards,
A.B.

TDS Exemptions on PF Withdrawals

TDS is not applicable in the following cases:

• On the transfer of PF from one account to another PF account (EPF A/c).

• On termination of service due to the ill-health of an EPF member who withdraws his/her accumulation.

• On discontinuation of business by the employer or any cause beyond the control of the EPF Scheme's member (employee).

• If the PF withdrawal amount is less than Rs 30,000.

• If an employee withdraws an amount more than or equal to Rs. 30,000, with service less than 5 years but submits Form 15G/15H along with his/her PAN.

Regards