Pf withdrawal query

TDS 307 views 4 replies

Hi,

I have a query on PF withdrawal in a particular scenario, for which I need expert advice on TDS if I withdraw the PF now - 

  1. I have worked in two organizations from 2004 June to 2007 May, where I contributed to PF. (Duration - 3 years)
  2. From 2007 June to 2013 August, I worked in an organization where I had an option not to contribute to PF. I did not contribute to PF and had no PF account for that organization. (Duration - 6 years 1 month)
  3. From 2013 Sep to 2016 April, I worked with an organization where I contributed to PF (Duration 2 years - 8 months). I had transferred my old PF balance to the new company’s account. However this organization restructured and created a new entity in March 2015, where a new PF account was created for me and my team. Therefore this organization has two parts - 
    • From 2013 Sep to 2015 Feb - One PF account (Duration 1 year 6 months). My old balance is with this account.
    • From 2015 Mar to 2016 April - Another PF account (Duration 1 year 2 months)
    • Total 2 PF accounts for duration of 2 years and 8 months.
  4. From 2016 May till date I am with a new firm which has a new PF account. I have not transferred my old PF balances of both the entities to the new account yet

If I withdraw my PF balance of both entities of my previous organization (except my current firm), how much TDS will be deducted?

  • I have a PAN card and a UAN no and I need to withdraw PF  for my sister’s wedding
  • I need to know If the withdrawal will be considered as more than 5 years of service and Contribution to PF (4.6 years - 3 years with first two firms + 1.6 years with first entity of previous firm) or (5 years 8 months – 3 years with first two firms + 2.8 years with both entities of previous firms) or (total 6 years 2 months - 3 years with first two firms + 2.8 years with both entities of previous firms + 6 months of the current firm)

Request the experts to help me with the correct answer. Thanks in advance.

Replies (4)

TDS @ 10% will be applicable on withdrawal from last two companies as services rendered is less than 5 years.

Sandip,

Thanks much for the response.

Last two companies together is 5 years 8 months – 3 years with first two firms + 2.8 years with both entities of previous firms. Do you mean to say that the time period will be considered only as - 3 years + 1.6 years of first entity of the previous firm?

Further, In total, as on date I have more than 5 years of contribution to PF. If i withrdraw now, then I will have to withdraw from both entities of previous firms. As I have a UAN no and PAN no registered, would there be a way that the PF body considers this as more than 5 years of PF contribution and serivce?

Again, thanks for your response.



 

In my view duration of 5 years is per employer and it can not be clubbed with previous employer.

Thanks Sandeep for sharing your knowledge.

Other experts, request you to please let me know if you have another inference of " 5 years of Service".

 

 


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