Tax liability when PF gets transferred from one company to another

If you transfer your PF from your previous company to your new company, the entire amount will be tax-free, even if you join your new company after 1 year.

This is because the 5-year service requirement for tax exemption on PF withdrawal is calculated based on your total service with all employers, not just your current employer.

However, there are a few things to keep in mind:

-You must transfer your PF within 3 months of leaving your previous company.

-You must have a valid UAN (Universal Account Number).

-You must have a valid PAN (Permanent Account Number).

If you meet all of these conditions, you can transfer your PF online through the EPFO portal.

Thanks for the clarification.

Can you also suggest what would happen if the PF is not transferred within 3 months of leaving the previous organisation? Would it stop fetching interest or would it impact the online transfer process?