There is this provision that if one is without a job for 2 months, they can withdraw their PF, can anyone give me info on the following,
1. Is the amount we get taxable
2. What if we join a company post 4 months, does the same UAN number apply
3. Do the benefits we incur, like showing continuity of service with PF for more than 5 years etc, get reset.
thanks for the support.
From India, Mumbai
31. Is the amount we get taxable
2. What if we join a company post 4 months, does the same UAN number apply
3. Do the benefits we incur, like showing continuity of service with PF for more than 5 years etc, get reset.
thanks for the support.
From India, Mumbai
Hi,
Visit below site, you will get all information.
New EPF Withdrawal Forms-Withdraw without employer signature - BasuNivesh
From India, Chennai
Visit below site, you will get all information.
New EPF Withdrawal Forms-Withdraw without employer signature - BasuNivesh
From India, Chennai
The provision should be interpreted like this:
If you want to withdraw the PF, you should submit the claim form. This claim form can be submitted after waiting for two months of leaving the organisation. After leaving the first organisation if you get employed in another organisation to which PF applies, then you cannot go for withdrawal benefit. At the same time if you get employment but in an organisation to which the PF is not applicable (say, due to less number of employees) then also you can claim withdrawal benefit.
Now, coming to the next part of the query, PF amount withdrawn after 5 years of service will be tax free. At the same time, if you withdraw PF before completing 5 years of membership, it will be taxable at the rate of 34.608% as if the income of claimant from all other sources is at the maximum of IT slab. Therefore, in order to show that the member withdrawing the PF does not fall under income tax he has to submit to the EPFO a form, viz, form 15G/ 15H along with the PF withdrawal forms. Form 15G is for persons below the age of 60 years and form 15H is meant for senior citizens. However, no tax would be deducted at source if the total amount from the PF is Rs 50000 or less than Rs 50000.
If you transfer the PF to new PF account created at the new p[lace of employment, no tax would be deducted.
If you have closed the PF by claiming the withdrawal benefit, the UAN will cease to exist and in such cases, on joining the new establishment you will be allotted a new UAN.
Withdrawal of PF will certainly put an end to your service and with each entry to a new establishment the service will get reset. However, if you do not withdraw the Pension Fund at each occasion of job change or if you opt for "scheme certificate" in lieu of withdrawal benefit whenever you shift a job, your continuity of service with regard to pension will be maintained.
It is not mandatory that when you withdraw PF, you should withdraw both the Provident Fund as well as Pension Fund.
Madhu.T.K
From India, Kannur
If you want to withdraw the PF, you should submit the claim form. This claim form can be submitted after waiting for two months of leaving the organisation. After leaving the first organisation if you get employed in another organisation to which PF applies, then you cannot go for withdrawal benefit. At the same time if you get employment but in an organisation to which the PF is not applicable (say, due to less number of employees) then also you can claim withdrawal benefit.
Now, coming to the next part of the query, PF amount withdrawn after 5 years of service will be tax free. At the same time, if you withdraw PF before completing 5 years of membership, it will be taxable at the rate of 34.608% as if the income of claimant from all other sources is at the maximum of IT slab. Therefore, in order to show that the member withdrawing the PF does not fall under income tax he has to submit to the EPFO a form, viz, form 15G/ 15H along with the PF withdrawal forms. Form 15G is for persons below the age of 60 years and form 15H is meant for senior citizens. However, no tax would be deducted at source if the total amount from the PF is Rs 50000 or less than Rs 50000.
If you transfer the PF to new PF account created at the new p[lace of employment, no tax would be deducted.
If you have closed the PF by claiming the withdrawal benefit, the UAN will cease to exist and in such cases, on joining the new establishment you will be allotted a new UAN.
Withdrawal of PF will certainly put an end to your service and with each entry to a new establishment the service will get reset. However, if you do not withdraw the Pension Fund at each occasion of job change or if you opt for "scheme certificate" in lieu of withdrawal benefit whenever you shift a job, your continuity of service with regard to pension will be maintained.
It is not mandatory that when you withdraw PF, you should withdraw both the Provident Fund as well as Pension Fund.
Madhu.T.K
From India, Kannur
In addition to the points mentioned above, I request if one more clarity can be provided. As mentioned by respected Madhu T.K.
" At the same time if you get employment but in an organisation to which the PF is not applicable (say, due to less number of employees) then also you can claim withdrawal benefit." If my basic is above 15000 in the new organization then also i do not fall under the PF catagory and can i withdraw the PF. OR i need to ensure that I remain jobless for 2 months and then join the new organization so that I can legally claim the PF amount without hurting my own conscious. Please confirm / Guide if possible.
From India, Mahesana
" At the same time if you get employment but in an organisation to which the PF is not applicable (say, due to less number of employees) then also you can claim withdrawal benefit." If my basic is above 15000 in the new organization then also i do not fall under the PF catagory and can i withdraw the PF. OR i need to ensure that I remain jobless for 2 months and then join the new organization so that I can legally claim the PF amount without hurting my own conscious. Please confirm / Guide if possible.
From India, Mahesana
If in the new establishment, which is covered by PF, your PF qualifying salary (not simply the Basic alone but what all would qualify for PF contribution) is more than Rs 15000 or such other higher amount the PF Organisation may fix ( because there is a possibility that the PF qualifying salary will be increased from 15000 to Rs 25000 as this will make more employees under PF cover and the government can get a huge amount in addition to the crores and crores of corpus fund already available and rotate it for its extravagance without making any effort to bring back Vijay Mallyas !!) then also you should be covered because you are an existing member and for an existing member salary is not a matter. An existing member means a new employee who was a member of PF but has not withdrawn the PF on leaving the previous employment. Therefore, if you have left company A and on leaving you have not withdrawn your PF accumulations due to any reason, perhaps it is only less than 2 months since you have left that company, and joins company B (covered by PF) but at the time of joining company B your PF qualifying salary is more than 15000, you are an existing member and you should continue with PF with old UAN with the present company, ie, company B.
If you want to get your PF accumulations withdrawn, certainly, you should be unemployed for at least 2 months.
Madhu.T.K
From India, Kannur
If you want to get your PF accumulations withdrawn, certainly, you should be unemployed for at least 2 months.
Madhu.T.K
From India, Kannur
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