Hi all,
I am in a big mess. I had to transfer my PF account from the previous organization to the new one. However, due to a hectic schedule, I forgot to fill out the PF transfer form and submitted it after 6 months of my service in the new organization. I was amazed to find out that my previous organization had already transferred my PF amount to my savings account, stating that they received my application 2 months after I left the organization. In that case, they transferred the amount to the savings account by default without any intimation to me. Now, as a result, since I had not completed 5 years of service, I have to bear a huge tax liability of an additional Rs. 80,000 (as the entire PF amount credited to my savings account has been treated as my income).
I would like to have your suggestions in this case. Is there really a 2-month limit within which you need to transfer your PF account? Can I sue them for this? Please help me out.
From India, Madras
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1I am in a big mess. I had to transfer my PF account from the previous organization to the new one. However, due to a hectic schedule, I forgot to fill out the PF transfer form and submitted it after 6 months of my service in the new organization. I was amazed to find out that my previous organization had already transferred my PF amount to my savings account, stating that they received my application 2 months after I left the organization. In that case, they transferred the amount to the savings account by default without any intimation to me. Now, as a result, since I had not completed 5 years of service, I have to bear a huge tax liability of an additional Rs. 80,000 (as the entire PF amount credited to my savings account has been treated as my income).
I would like to have your suggestions in this case. Is there really a 2-month limit within which you need to transfer your PF account? Can I sue them for this? Please help me out.
From India, Madras
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Dear Varun,
According to me, it's not only after two months. Few companies might follow this. In fact, you can withdraw anytime you want after two months. However, in your case, if the previous employer has submitted the PF form on your behalf, the PF department cannot process the forms without your signature. This is one major point you need to mention. Hope you have understood the point here. Please try to find if you can get any information about such things on the PF website www.epfindia.com.
Regards,
Amith R.
From India, Bangalore
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According to me, it's not only after two months. Few companies might follow this. In fact, you can withdraw anytime you want after two months. However, in your case, if the previous employer has submitted the PF form on your behalf, the PF department cannot process the forms without your signature. This is one major point you need to mention. Hope you have understood the point here. Please try to find if you can get any information about such things on the PF website www.epfindia.com.
Regards,
Amith R.
From India, Bangalore
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But they have deposited the entire amount in my savings account without my approval, saying that you had to transfer the whole PF to the new company within 2 months, or else we deposit it in your savings account by default. Is their reasoning apt, or is there a flaw?
From India, Madras
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From India, Madras
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Steps to transfer PF amount.jpg
13revised (PF TRANSFER).pdf