Dear Sir/Madam,
I have resigned from a company and joined another company and have received PF withdrawal form from the earlier company. However, my new company does not have the facility of PF. The earlier company has a PF trust, so it has its own form (Form 10C and Form 19 are not there). In the form provided by the earlier company, I fit in the option which mentions that "If you are employed in an organization which does not have PF (Certificate from the employer to be enclosed)".
My question is, in such a case, what should I write in the certificate and whose signatures should be taken? The other feasible options are (a) self-employed/unemployed and (b) going for higher studies. If I choose either of the options (a) or (b), are there any certificates to be attached? I am asking because they haven't mentioned anything about these options.
Please reply at the earliest.
Regards,
Nikhil
From India, Mumbai
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I have resigned from a company and joined another company and have received PF withdrawal form from the earlier company. However, my new company does not have the facility of PF. The earlier company has a PF trust, so it has its own form (Form 10C and Form 19 are not there). In the form provided by the earlier company, I fit in the option which mentions that "If you are employed in an organization which does not have PF (Certificate from the employer to be enclosed)".
My question is, in such a case, what should I write in the certificate and whose signatures should be taken? The other feasible options are (a) self-employed/unemployed and (b) going for higher studies. If I choose either of the options (a) or (b), are there any certificates to be attached? I am asking because they haven't mentioned anything about these options.
Please reply at the earliest.
Regards,
Nikhil
From India, Mumbai
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Hello Nikhil,
The meaning of the certificate could be a letter from your current employer that "it is an exempted" establishment.
Let me explain you in little details to help you get clarity on this subject matter.
An establishment covered under the EPF & MP Act, 1952 is required to comply with the statutory provisions of the Act and also the provisions of the Schemes framed under the Act namely EPF Scheme, 1952, EPS Scheme, 1995 and EDLI Scheme, 1976.
However, the Act provides for grant of exemption from the operation of Act and also exemption from the operation of the Schemes framed under the Act. Thus, the types of exemption provided under the Act may be broadly classified as under:
(a)Exemption from the Act (Including the Schemes), under Section – 16 (2) of the Act.
(b)Exemption from the operation of the Scheme/s viz. EPF Scheme / EPS Scheme / EDLI Scheme.
You current establishment may be aligned with either one of these categories.
Seek an certificate from them specifying that they are exempted and if possible, the category under which they have been granted exemption.
YOU NEED NOT HAVE TO BEG YOUR PREVIOUS EMPLOYER FOR YOUR PF DUES. IT'S YOUR RIGHT.
Just submit the certificate and see what they say. Revert to me with their answer and I'll tell you how to proceed.
Regards,
Abhijit
From India, Mumbai
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38The meaning of the certificate could be a letter from your current employer that "it is an exempted" establishment.
Let me explain you in little details to help you get clarity on this subject matter.
An establishment covered under the EPF & MP Act, 1952 is required to comply with the statutory provisions of the Act and also the provisions of the Schemes framed under the Act namely EPF Scheme, 1952, EPS Scheme, 1995 and EDLI Scheme, 1976.
However, the Act provides for grant of exemption from the operation of Act and also exemption from the operation of the Schemes framed under the Act. Thus, the types of exemption provided under the Act may be broadly classified as under:
(a)Exemption from the Act (Including the Schemes), under Section – 16 (2) of the Act.
(b)Exemption from the operation of the Scheme/s viz. EPF Scheme / EPS Scheme / EDLI Scheme.
You current establishment may be aligned with either one of these categories.
Seek an certificate from them specifying that they are exempted and if possible, the category under which they have been granted exemption.
YOU NEED NOT HAVE TO BEG YOUR PREVIOUS EMPLOYER FOR YOUR PF DUES. IT'S YOUR RIGHT.
Just submit the certificate and see what they say. Revert to me with their answer and I'll tell you how to proceed.
Regards,
Abhijit
From India, Mumbai
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Dear Sir/Madam,
I started working in a company from Jan '2010 and was relieved in Oct '14. I had EPF and EPS contributions during my tenure there. After resigning, I joined another company and have been working there since Nov '14.
I am currently facing a dilemma regarding whether to withdraw my PF or transfer the PF account. What are the advantages and disadvantages of each option? I have heard that if I choose to withdraw, 20% tax will be deducted. Is this information accurate?
I am in need of funds at present. What would be the best possible solution in my situation?
Thanks in advance.
Surendhar M
From India,
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I started working in a company from Jan '2010 and was relieved in Oct '14. I had EPF and EPS contributions during my tenure there. After resigning, I joined another company and have been working there since Nov '14.
I am currently facing a dilemma regarding whether to withdraw my PF or transfer the PF account. What are the advantages and disadvantages of each option? I have heard that if I choose to withdraw, 20% tax will be deducted. Is this information accurate?
I am in need of funds at present. What would be the best possible solution in my situation?
Thanks in advance.
Surendhar M
From India,
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Hello Surendhar,
If you had left your previous establishment after 3 more months of service, i.e., in Jan-15, you would have received 2 benefits directly related to your financial advantage:
1) You would have been eligible for gratuity, and even following the standard rule, you would have been entitled to 75 days of basic wages (or the basic you are currently receiving).
2) Your PF withdrawal would have been completely tax-free. However, since you left your establishment before completing 5 years, the PF office will remit your contribution for PF and pension after deducting the tax component.
Under these circumstances, I recommend that you transfer your PF by filling out Form 13 online. You may apply for a loan from the PF, but ensure to check your eligibility first. The details can be found on the EPF website.
Regards,
Abhijit
From India, Mumbai
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If you had left your previous establishment after 3 more months of service, i.e., in Jan-15, you would have received 2 benefits directly related to your financial advantage:
1) You would have been eligible for gratuity, and even following the standard rule, you would have been entitled to 75 days of basic wages (or the basic you are currently receiving).
2) Your PF withdrawal would have been completely tax-free. However, since you left your establishment before completing 5 years, the PF office will remit your contribution for PF and pension after deducting the tax component.
Under these circumstances, I recommend that you transfer your PF by filling out Form 13 online. You may apply for a loan from the PF, but ensure to check your eligibility first. The details can be found on the EPF website.
Regards,
Abhijit
From India, Mumbai
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Dear Abhijit Thank you very much for your reply. If I apply for withdrawal after jan’15. By that time my pf account will be 5 years. So will it be tax free?
From India,
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From India,
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Surendhar, any withdrawal before the completion of 5 years is taxable. You need to ensure that your PF contributions have been made for 60 months into your account.
However, since you were relieved in Oct-14, how will you ensure the continuity? This can happen if you had joined another organization that would have been depositing your PF contributions. In that case, you would not be able to withdraw due to the portability element coming in.
Regards,
Ab
From India, Mumbai
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However, since you were relieved in Oct-14, how will you ensure the continuity? This can happen if you had joined another organization that would have been depositing your PF contributions. In that case, you would not be able to withdraw due to the portability element coming in.
Regards,
Ab
From India, Mumbai
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