Hi,
I quit my previous company before completing 6 months. I heard that if I withdraw PF, I won't get the Pension fund. Is it true? If I transfer the PF amount to a new account created in the new company, will I get the full amount?
Regards,
Bineesh
From India, Bangalore
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I quit my previous company before completing 6 months. I heard that if I withdraw PF, I won't get the Pension fund. Is it true? If I transfer the PF amount to a new account created in the new company, will I get the full amount?
Regards,
Bineesh
From India, Bangalore
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Hi Bineesh, Yes its true that you wont get pension. For pension employee should have 6 months contribution. Your PF a/c will be continued after transfering.
From India, Mumbai
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From India, Mumbai
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Understanding the PF Act and Pension Eligibility
The PF is a social security act introduced to support employees after retirement with a pension. If a person withdraws the amount before retirement, the whole purpose of the act is jeopardized. Therefore, to discourage early withdrawal, this clause is present in the PF act.
If you withdraw the PF amount once, you are not eligible for a pension; you are only eligible for the provident fund.
Thanks and Regards,
JK
From India, Calcutta
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The PF is a social security act introduced to support employees after retirement with a pension. If a person withdraws the amount before retirement, the whole purpose of the act is jeopardized. Therefore, to discourage early withdrawal, this clause is present in the PF act.
If you withdraw the PF amount once, you are not eligible for a pension; you are only eligible for the provident fund.
Thanks and Regards,
JK
From India, Calcutta
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Why You Shouldn't Withdraw Your PF Amount
It is always prudent to never withdraw or touch your PF amount. Always transfer the PF accumulation to your new employer. The reason being:
- **PF is meant for post-retirement purposes.** If the amount is withdrawn before superannuation, it loses its purpose. It serves as a good invisible investment in the long term.
- **The PF amount is completely tax-exempt.** There is no tax on the PF accumulated amount. Therefore, if you keep it alive and withdraw it when you turn 58, the entire amount is credited to you in full.
- **The interest on the PF contributions is a good 8.5% on a compounded basis and guaranteed,** whereas any other investment is taxable. In the long run, again, the accumulated interest is tax-free and serves as a good reliable source of investment.
To answer your question, you can, however, withdraw, but if you have not completed 6 months, then you will lose the EPS amount.
Regards
From India, Mumbai
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It is always prudent to never withdraw or touch your PF amount. Always transfer the PF accumulation to your new employer. The reason being:
- **PF is meant for post-retirement purposes.** If the amount is withdrawn before superannuation, it loses its purpose. It serves as a good invisible investment in the long term.
- **The PF amount is completely tax-exempt.** There is no tax on the PF accumulated amount. Therefore, if you keep it alive and withdraw it when you turn 58, the entire amount is credited to you in full.
- **The interest on the PF contributions is a good 8.5% on a compounded basis and guaranteed,** whereas any other investment is taxable. In the long run, again, the accumulated interest is tax-free and serves as a good reliable source of investment.
To answer your question, you can, however, withdraw, but if you have not completed 6 months, then you will lose the EPS amount.
Regards
From India, Mumbai
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But my doubt is not clear... If I transfor money from old PF a/c to new PF a/c will I get all the money (Provident Fund and Pension Fund)?
From India, Bangalore
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From India, Bangalore
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yes, if you transfer your amount from one account to another account you will get the whole amount. Form no. 13 will be filled for the transfer of account. Thanking you, Parvez
From India, Ahmadabad
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12From India, Ahmadabad
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The pension eligibility is only after attaining 58 years. 8.33% of employer's contribution, subject to a maximum of Rs. 541/- at present, goes to the EPS'95 fund.
You have a long career ahead. When you join a new company, the employer will continue with the same.
Tanuja
From India, Delhi
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You have a long career ahead. When you join a new company, the employer will continue with the same.
Tanuja
From India, Delhi
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Dear BN,
Submit Form 10C and get a scheme certificate from PF authorities when you apply for PF transfer through Form 13. After receiving the scheme certificate, submit it to your employer for onward submission to PF authorities. (Please take a copy of the scheme certificate before submitting it to your employer). This will ensure that your old Pension Fund account gets merged with the new one.
Regards,
Shankar
From India, Madras
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Submit Form 10C and get a scheme certificate from PF authorities when you apply for PF transfer through Form 13. After receiving the scheme certificate, submit it to your employer for onward submission to PF authorities. (Please take a copy of the scheme certificate before submitting it to your employer). This will ensure that your old Pension Fund account gets merged with the new one.
Regards,
Shankar
From India, Madras
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Hi, I quit my previous company after completing 3 years. Then, I joined another company and completed 2 years. After that, I switched to my present company and completed 1 year, creating a new PF account. However, I did not transfer both the previous PF accounts to the new PF account created in the new company. Should I transfer both my previous accounts? If I transfer the PF amount to the new account created in the new company, will I receive the full amount?
Regards, Subhas
From India, Raurkela
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Regards, Subhas
From India, Raurkela
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Hiiii...I need to know the total details about PF-Forms and all this.Guys if you have any proper update on it kindly pass the information to me ASAP. With Warm Regards, Amit Banerjee
From India, Calcutta
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From India, Calcutta
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Hello friends, I want to know that is it possible for any employee to withdraw some amount from PF account and how much we can withdraw and for what purpose it will be applicable.
From India, Lucknow
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From India, Lucknow
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Early PF withdrawal won’t be easy.pdf
Steps to transfer PF amount.jpg