Closing My PF Account After 2 Years: What Penalties Should I Expect Before Age 55?

I have worked for 2 years and now I want to close my PF account and withdraw money. I heard if we withdraw it before 55 years of age, there is a huge penalty. Can anybody tell me how much the penalty will be?

Hello friend,

Sorry, I don't know your name. It is just your misconception that there is a huge penalty if you withdraw your PF fund before the age of 55. There is no such clause. You may withdraw your PF fund any time after 60 days of leaving the organization. However, if you are thinking of withdrawing while serving in the organization, then it's not possible. Once you are a member of PF, you can't stop the contribution until you leave the organization. But, of course, you may apply for a partial withdrawal as per the provisions.

Amit Goyal
9811558950

Hi,

Are you assuming that or has someone told you? I have resigned from my previous company after 3 years of service. Within three months, I received my PF amount credited to my bank account. Please check with your company's personnel for the exact formalities of PF withdrawal.

Regards,
Sridevi

Guys, it's correct that you can't close your PF account until the age of 55. However, you can withdraw your money after you leave an organization, and you will receive your money within 3 to 6 months.

Hi Friends,

I agree with Mr. Amit's view, and in addition to that, I want to mention some important things about PF:

PF contributions can be transferred to the present employer or can be withdrawn; this is 100% the option of employees.

Yes, there are two parts: one is the PF fund, and the other is the pension contribution. The pension contribution is always deposited with the sub-regional office, but the PF fund varies; it might be with the PF office or the PF trustee board, i.e., whether the company is exempted or unexempted.

One very important thing to note is that there is a provision for a scheme certificate that employees can take to claim pension benefits. My personal advice to all working people like us is to transfer or take a scheme certificate for the pension contribution for our future needs and uncertainties.

Furthermore, after leaving the organization, withdrawals can be made at any time, and we will receive the refund with interest. I have heard that after three years, the calculation of interest stops, but to date, nobody has confirmed this, not even the PF office.

If anyone has additional suggestions, please feel free to share them, and if anyone wants to know more, I can be contacted at the number below.

Rrtpan (HR)

Dear Friend,

Please let me know what a pension scheme certificate is and what the procedure is to obtain it. My PF account has been in operation for the last 2.5 years. Will it be a problem when I withdraw?

Kindly reply to me at whitelotus99@gmail.com.

Thank you.

Hi,

Please find the reply to your query below:

Scheme Certificate

This certificate shows the service and family details of a member. It is issued if the member has not attained the age of 58 while leaving an establishment and applies for this certificate. The member can surrender this certificate when joining another establishment, and the service stated in the certificate is added to the service gained from the new establishment.

After attaining the age of 50 or above, the member can apply for a pension by surrendering this scheme certificate if the total service is at least 10 years. This is a better choice than a Withdrawal Benefit. If a member dies holding a valid scheme certificate, his family will receive a pension (in the event of death when not in service).

Amit Goyal
9811558950

In this context, I want to ask you all one more question. I resigned from my previous company around one and a half years ago, and I don't know my PF account number. My present company does not have any PF deductions, so I did not bother to find out the number, and the amount was small, so I did not withdraw it. Now, I'm joining another company that has PF deductions. How can I find out my PF account number? Can I open a new PF account again?

Please help.

Regards,

Lakshmi Sriram.

Hi Lakshmi,

Yes, of course, you may get a new PF account opened with your new employer. Also, if you want, you can get your PF funds from your previous employer transferred to the new employer's account. To initiate the transfer, you need to fill out Form 13, which is attached. Please provide your old PF account number, which you can obtain from your ex-employer. Once you have filled out the form, simply submit it to your new employer. Your new employer will take care of the rest, and your funds will be transferred to the new account.

Amit Goyal
9811558950

Hi,

I worked with my previous employer for 3.5 years and left the job 2 years ago, and have not been working ever since. I have a fair amount of PF which I haven't withdrawn till date because of the interest I might be earning. Can someone please clarify whether interest would still be adding every month on the balance amount, even if I left the job and there are no more savings adding every month to the PF account? Also, as I read in one of the responses, the interest stops getting added after 3 years. Is that true? Is it a good idea to wait for another year (to complete the 3 years of having left contributing to the PF account) to withdraw the money? Will my previous employer still process my Form 10C if I delay the withdrawal? What if the previous employer company ceases to exist due to unforeseen circumstances? I am really confused because I wanted to continue the same account later when I join a new job after a year or so. Please suggest.

Also, since I was a regular taxpayer, should I continue to submit my tax return showing Rs. 0 as earnings every year for my PAN card account until I resume work again? How can I change my last name and address on the PAN account due to marriage? Please clarify.