Krishav Aggarwal (NA) (28 Points)
13 November 2023Hi
I have left my job and now planning to join a new one after a short break. What would happen to my PF from my previous company when the same gets transferred to the new company? Do I have to pay any tax if I join new company after 1 year for eg? I worked in my previous company for 3 years only so I know that if I withdraw the amount, it would become taxable. But I want to know what would happen if I transfer the entire amount after 1 year of my last day of working to a new company?
Thanks
Gokul Sharma
(jamshedpur)
(3883 Points)
Replied 13 November 2023
CA Aman Rajput
(Chartered Accountant)
(8205 Points)
Replied 14 November 2023
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.
Krishav Aggarwal
(NA)
(28 Points)
Replied 20 November 2023
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?
CAclubindia
