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Epf withdrawal query

Vicky (Manager) (24 Points)

17 October 2012

I was previously working in a big organization and now changed job and shifted to a small office. Number of people in my new office are not more than 20 hence the employer did not opt to register for Provident Fund. I was working for 3 years in my previous organization and was planning to withdraw the EPF balance. I heard that the withdrawal of EPF balance before 5 years of service is taxable.

I need help to know what is the better option so that I dont have to pay tax on the EPF, shall I continue the EPF account for 2 more years and can withdraw after completion of 5 years. The other solution I was looking was to transfer the EPF balance to PPF account will it be possible.

Can you please suggest what is the best thing I should do to sve tax. I do not want to withdraw the balance in case I have to pay tax on this.

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11 Replies

@VaibhavJ (Believe!! Live your dreams!) (33511 Points)
Replied 18 October 2012

HI,

Since Tenure of contribution falls short of 5 years continous employment PF withdrawals will be taxable:

Therefore the tax treatment will be as follows:

1.Own contribution to PF: Not taxable
2.Interest on Own PF contribution: Taxable under the head 'Income from Other Sources'.
3.Employer's contribution and interest received on that: Taxable under the head 'Salaries'.

Options:

Whem you withdraw PF then taxable amount will be added back to you Income of current year from which you can claim deduction by Investing u/s 80. So Taxability depends on your current year taxable Income.

Note for new Investment time limit will again start from Zero.

Since you may not continue in current job for longer term or in future PF may be attracted to your new firm, so you can keep ypur amount invetsed in PF A/c.

Rgds//Vaibhav

amay (Software Engineer) (36 Points)
Replied 18 October 2012

Hello,

I have a similar case. I worked in previous organization for about 4 years and not started my own proprietory business. If I withdraw my PF now, it will be taxable.

If I keep the PF account as it is for one more year and then withdraw, will the PF amount taxable?

What are the other options for me to avoid this tax on PF withdrawl?

Thank you,

Amay.

Subramanyam (Accountant) (221 Points)
Replied 28 August 2014

Hi,

I have applied EPF 3 years claim In my pay slip deducting Rs 780 pm finaly for 3 years i got only 41800 wherw can i enquer ?

@VaibhavJ (Believe!! Live your dreams!) (33511 Points)
Replied 01 September 2014

Originally posted by : Subramanyam
	Hi, I have applied EPF 3 years claim In my pay slip deducting Rs 780 pm finaly for 3 years i got only 41800 wherw can i enquer ?

1st check with your HR, also you can chek your PF a/c balance on EPF website https://www.epfindia.com/membbal.H T M L.

Thanks

Amin Ul RAheman (Others) (26 Points)
Replied 16 July 2015

Hello Sir/Mam

I have worked for a private organisation for a period of 20months and after 3 months of resignation, i have applied for PF withdrawl. Now its already 3 months that i have applied for PF withdrawl, when i have contacted my HR, He is saying that Govt has started a new rule and as per that rule, I will not be able to withdraw PF upto 58years of age. would like to confirm if there is such new rule started?

1 Like

@VaibhavJ (Believe!! Live your dreams!) (33511 Points)
Replied 16 July 2015

Originally posted by : Amin Ul RAheman
	Hello Sir/Mam I have worked for a private organisation for a period of 20months and after 3 months of resignation, i have applied for PF withdrawl. Now its already 3 months that i have applied for PF withdrawl, when i have contacted my HR, He is saying that Govt has started a new rule and as per that rule, I will not be able to withdraw PF upto 58years of age. would like to confirm if there is such new rule started?

Hi,

If you discontinue working elsewhere as salaried person then only you will be able to withdraw your PF, other wise you can not withdraw your PF & same will be continued with your new employment.

Bests,

@ VaibhavJ

Biren (Business Analyst) (21 Points)
Replied 24 December 2015

Hello Sir,

I have a query regarding TDS on PF withdrawal from my previous Org (Tata group). Lets say it is Org2 (Tata Group company).

Prior to joining Org2, I was employed with Org1 from 15-09-2005 to 24-09-2008.

Then I took a break for my MBA and was employed with Org2 from 28-06-2010 to 17-06-2011.

My Org1 PF which was started on 15-09-2005 was transferred to Org2 PF.

So would like to know if I provide a withdrawal application, TDS would be applicable on withdrawal or not? Becasue the clause of 5 years in service is very confusing.

Thanks.

Srikanth Kujala (2 Points)
Replied 02 July 2017

Hi.. I've changed my job and worked for 22 months with previous organisation where that PF amount is less than 50,000. Can I withdraw the PF amount? Will that be taxable. As per previous organization PF was only contributed from my end. If I withdraw how much time will it take to be deposiited?

Sophie Ann Varghese (4 Points)
Replied 10 April 2018

I was working with Indigo airlines and I resigned in April 2017, now I want to claim my PF online but then am settled down in Dubai. And moreover I don't remember my UAN number also. Can you guys please help me to claim my PF?

Regards

Sophy Varghese

Sophie Ann Varghese (4 Points)
Replied 10 April 2018

Regards

Sophy Varghese

Pooja Gupta (2 Points)
Replied 08 February 2019

I HAVE APPLIED PF 3 TIMES BUT IT GOT REJECTED EVERY TIME AND REASON WAS EITHER NAME MISMATCH OR NAME NOT UPDATED IN ADHAAR. BUT BOTH REASONS ARE NOT VALID . NOW WHAT I DO