Withdraw pf without tax

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

06 December 2013 Hi,

My objective is to withdraw PF without incurring tax. The facts (service period) are given below:

First Co From Mar 2006 to Mar 2010;
Second Co from Apr 2010 to Jun 2013;
Joined third Co in July 2013.

I have not transferred my PF from First Co to Second Co. Have not transferred PF from second co to third co also.

I read if we withdraw PF within first 5 years of service, PF is taxable.

My question is can I withdraw PF from Ist & IInd co without transferring the PF from Ist Co to IInd Co?

Or should I transfer PF from Ist Co to IInd co & then withdraw?

Kindly advice.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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06 December 2013 You may follow the link -

http://wealth18.com/how-to-withdraw-pf-early-pre-mature-in-case-of-emergencies-or-specific-conditions/

Querist : Anonymous

Querist : Anonymous (Querist)

12 December 2013 Thanks. But that do not answer my question.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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12 December 2013 It is advisable to transfer the balance from Ist Co to IInd company's PF A/c and then withdraw the same from the IInd Company's PF A/c.
.

Querist : Anonymous

Querist : Anonymous (Querist)

26 December 2013 Thanks. But can i transfer to second Co, which i have left 3 months back?

Asha Kanta Sharma

Asha Kanta Sharma (Expert)
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03 August 2025 Good question! Here’s the key point about PF transfer and withdrawal:

Can you transfer PF to a company you left 3 months ago?
No, you cannot transfer PF to a previous employer’s PF account after leaving that company.

PF transfers can only be done from your previous employer's EPF account to your current employer's EPF account while you are employed there.

What you should do in your case:
Since you have left Second Co 3 months back and joined Third Co, you cannot transfer your First Co’s PF to Second Co’s PF account now.

Instead, you should transfer your First Co PF balance directly to your Third Co’s EPF account.

Also, transfer the Second Co’s PF balance to your Third Co’s EPF account.

Once all balances are consolidated under your current employer's PF account (Third Co), you can apply for withdrawal or continue accumulation.

About taxability of withdrawal:
PF withdrawn before completion of 5 continuous years of service is taxable.

If your total continuous service with the EPFO is considered more than 5 years (after transfer/consolidation), withdrawal will be tax-free.

Since you changed jobs, the continuity counts only if PF is transferred seamlessly.

If gaps or no transfer, then service periods may be counted separately.

Summary steps:
Get your UAN (Universal Account Number) activated if not done already. UAN helps in consolidating PF accounts.

Transfer PF from First Co and Second Co to Third Co’s EPF account through the EPFO unified portal.

Once transferred, apply for withdrawal or keep PF as per your need.

Tax exemption applies if your continuous service exceeds 5 years (as per EPFO records).

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