Hi,
I would like to know if there is any tax on withdrawing R-PF from previous employer after 5 years.
Important point to note: I joined the previous organization way back in June 2007 and resigned in November 2009, since then my PF account is lying as is and there is no activity in it. They say its a dead account and I need to do few more formalities to withdraw the amount. Few more formalities aren't my concern, the concern is if the withdrawal will be taxable or not...or should I wait from June to complete the 5 years of joining my previous organisation/5 yrs of opening my previous RPF?
Regards,
Wisdom123
From Netherlands, Nieuwegein
1I would like to know if there is any tax on withdrawing R-PF from previous employer after 5 years.
Important point to note: I joined the previous organization way back in June 2007 and resigned in November 2009, since then my PF account is lying as is and there is no activity in it. They say its a dead account and I need to do few more formalities to withdraw the amount. Few more formalities aren't my concern, the concern is if the withdrawal will be taxable or not...or should I wait from June to complete the 5 years of joining my previous organisation/5 yrs of opening my previous RPF?
Regards,
Wisdom123
From Netherlands, Nieuwegein
Hi,
To get the exemption, an employee should have actually worked for at least 5 years with the same employer and not merely keep the PF account active.
Another important point to note is that in November 2012, your account will be treated as dormant account,i.e. no further interest will be credited on the account.
In a nutshell, whether you withdraw PF now or later, the employers contribution along with the interest is taxable.
Regards
Amitava
From India, Calcutta
To get the exemption, an employee should have actually worked for at least 5 years with the same employer and not merely keep the PF account active.
Another important point to note is that in November 2012, your account will be treated as dormant account,i.e. no further interest will be credited on the account.
In a nutshell, whether you withdraw PF now or later, the employers contribution along with the interest is taxable.
Regards
Amitava
From India, Calcutta
Thanks for a very quick reply Amitava, just wanted to confirm again - I left the organisation way back in november 2009 and as you suggested the interest will stop in november 2012, which means PF account goes dead after 3 years of leaving the organisation, is it?
HR guys from my previous employer told me your account is already dead and no interest has been credited since 2010. Please advice.
From Netherlands, Nieuwegein
HR guys from my previous employer told me your account is already dead and no interest has been credited since 2010. Please advice.
From Netherlands, Nieuwegein
Please refer to the notification given in the PF website where the period of such dormancy was changed from 5 years to 3 years effective 1st April, 2011.As such, my earlier suggestion holds true.
Regards
Amitava
From India, Calcutta
Regards
Amitava
From India, Calcutta
Thanks Amitava...its a great news for me as I was expecting that the interest credit into my PF account already stopped, as its 3 years, it means I'm still earning the interest on it. Since the withdrawal is taxable, I would go for a PF transfer to my new account at my present employer. Thanks again for getting me out of this confusion.
From Netherlands, Nieuwegein
From Netherlands, Nieuwegein
Can you suggest in my scenario-
I left my previous company in Nov,2007 and Have not applied for PF/Pension transfer yet. I want to withdraw this now.
As its around 5 yeard, so What are the other formalities which i need to do to withdrwaw pf and pension both except form 19 and 10C. Please note my previous company maintain pf and pension both in PF office.
Thanks
Saurabh
From United States, Middlesex
I left my previous company in Nov,2007 and Have not applied for PF/Pension transfer yet. I want to withdraw this now.
As its around 5 yeard, so What are the other formalities which i need to do to withdrwaw pf and pension both except form 19 and 10C. Please note my previous company maintain pf and pension both in PF office.
Thanks
Saurabh
From United States, Middlesex
Hi Amitava,
I need you suggestion/help. Few months back I've inquired about the tax regarding PF withdrawal.
Not I've got my PF amount credited. My PF contribution + Company contribution was 60k, however I've just got 61k credited into my account. Just 1k more as a interest. I tried checking the statement on EPFO <link updated to site home>
However it has different format there and I am not able to check the balance there. It has "TH/THA" and 3 empty boxes there but my account number starts with "MH/THN". Could you please let me know how to check the status and how to know why this amount is not matching?
From Netherlands, Nieuwegein
I need you suggestion/help. Few months back I've inquired about the tax regarding PF withdrawal.
Not I've got my PF amount credited. My PF contribution + Company contribution was 60k, however I've just got 61k credited into my account. Just 1k more as a interest. I tried checking the statement on EPFO <link updated to site home>
However it has different format there and I am not able to check the balance there. It has "TH/THA" and 3 empty boxes there but my account number starts with "MH/THN". Could you please let me know how to check the status and how to know why this amount is not matching?
From Netherlands, Nieuwegein
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.
Tax on premature PF withdrawal.pdf
Guide Lines for PF Withdrawal.doc