EPF Rules
Dear Friends,
There are many queries regarding EPF therefore this information may be helpful:
1. PF Withdrawal Upon Resignation :
Upon Resignation An Employee Can Either Withdraw Or Transfer His/Her PF Amounts At His Desire.
A) For Withdrawal : In order To Withdraw The PF/ Pension Funds You Have To Submit Form 19 And 10 C Preferably Through Your Employer. Depending Upon The Attitude And Working Capabilities Of Employees In The Respective EPF Office, It Will Take 45 To 60 Days To Get Your Balance Credited To Your Bank Account. Withdrawals Of PF Can Be Done Only After 60 Days Period After Resignation.
Form No 19 Is For Provident Fund Withdrawal & Form No. 10 C Is For Pension Scheme Withdrawal.
B) For Transfer : For Transfer You Have To Get Form 13 Submitted Through Your Present Company But You Need To Know Your Earlier PF A/C No. Etc.
Also You Need To Provide Following Details To Your Current Company.
• Name And Address Of The Previous Company From Which PF Is Still Pendind To Be Claimed.
• Group Code Of The Previous Company.
• Date Of Joining And Date Iof Leaving From Previous Company.
• Your PF No From The Previous Company.
2. PF Withdrawal During Working Period :
The Provident Fund Members Can Avail Advances / Partial Withdrawals Subject To Certain Conditions Like Marriage For Self And Dependant Sisters, Brothers Etc / Purchasing Of Dwelling House Or Repayment Of Housing Loan / Specified Medical Treatments / Closure Of Establishment Etc.,
You Need To Submit FORM 31 For Claiming Amount. But The PF Authorities Will Sanction Only If You Satisfy The Qualifying Conditions.
3. Income Tax on PF Withdrawal Amount
The Finance Act, 2015 (20 Of 2015) Has Inserted A New Section 192A Regarding The Payment Of Accumulated Provident Fund Balance Due To An Employee. The Provision Shall Take Effect From 1st June, 2015.
3.1. Income Tax Shall Be Deducted At Source (TDS) At The Following Rates If At The Time Of Payment Of The Accumulated PF Balance Is More Than Or Equal To Rs. 30,000/-, With Service Less Than 5 Years:-
A) TDS Will Be Deducted @ 10% Provided PAN Is Submitted. In Case Form No. 15G Or 15H Is Submitted By The Member, Then No TDS Shall Be Deducted.
B) TDS Will Be Deducted @ Maximum Marginal Rate (I.E. 34.608%) If A Member Fails To Submit PAN (And No Form No 15G Or 15H).
3.2TDS Shall Not Be Deducted In Respect Of The Following Cases:-
a. Transfer Of PF From One Account To Another PF Account.
b. Termination Of Service Due To Ill Health Of Member, Discontinuation/Contraction Of Business By Employer, Completion Of Project Or Other Cause Beyond The Control Of The Member.
c. If Employee Withdraws PF After A Period Of Five Years Of Continuous Service, Including Service With Former Employer.
d. If PF Payment Is Less Than Rs. 30,000/- But The Member Has Rendered Service Of Less Than 5 Years.
e. If Employee Withdraws Amount More Than Or Equal To Rs. 30,000/-, With Service Less Than 5 Years But Submits Form 15G/15H Along With Their PAN more
There are many queries regarding EPF therefore this information may be helpful:
1. PF Withdrawal Upon Resignation :
Upon Resignation An Employee Can Either Withdraw Or Transfer His/Her PF Amounts At His Desire.
A) For Withdrawal : In order To Withdraw The PF/ Pension Funds You Have To Submit Form 19 And 10 C Preferably Through Your Employer. Depending Upon The Attitude And Working Capabilities Of Employees In The Respective EPF Office, It Will Take 45 To 60 Days To Get Your Balance Credited To Your Bank Account. Withdrawals Of PF Can Be Done Only After 60 Days Period After Resignation.
Form No 19 Is For Provident Fund Withdrawal & Form No. 10 C Is For Pension Scheme Withdrawal.
B) For Transfer : For Transfer You Have To Get Form 13 Submitted Through Your Present Company But You Need To Know Your Earlier PF A/C No. Etc.
Also You Need To Provide Following Details To Your Current Company.
• Name And Address Of The Previous Company From Which PF Is Still Pendind To Be Claimed.
• Group Code Of The Previous Company.
• Date Of Joining And Date Iof Leaving From Previous Company.
• Your PF No From The Previous Company.
2. PF Withdrawal During Working Period :
The Provident Fund Members Can Avail Advances / Partial Withdrawals Subject To Certain Conditions Like Marriage For Self And Dependant Sisters, Brothers Etc / Purchasing Of Dwelling House Or Repayment Of Housing Loan / Specified Medical Treatments / Closure Of Establishment Etc.,
You Need To Submit FORM 31 For Claiming Amount. But The PF Authorities Will Sanction Only If You Satisfy The Qualifying Conditions.
3. Income Tax on PF Withdrawal Amount
The Finance Act, 2015 (20 Of 2015) Has Inserted A New Section 192A Regarding The Payment Of Accumulated Provident Fund Balance Due To An Employee. The Provision Shall Take Effect From 1st June, 2015.
3.1. Income Tax Shall Be Deducted At Source (TDS) At The Following Rates If At The Time Of Payment Of The Accumulated PF Balance Is More Than Or Equal To Rs. 30,000/-, With Service Less Than 5 Years:-
A) TDS Will Be Deducted @ 10% Provided PAN Is Submitted. In Case Form No. 15G Or 15H Is Submitted By The Member, Then No TDS Shall Be Deducted.
B) TDS Will Be Deducted @ Maximum Marginal Rate (I.E. 34.608%) If A Member Fails To Submit PAN (And No Form No 15G Or 15H).
3.2TDS Shall Not Be Deducted In Respect Of The Following Cases:-
a. Transfer Of PF From One Account To Another PF Account.
b. Termination Of Service Due To Ill Health Of Member, Discontinuation/Contraction Of Business By Employer, Completion Of Project Or Other Cause Beyond The Control Of The Member.
c. If Employee Withdraws PF After A Period Of Five Years Of Continuous Service, Including Service With Former Employer.
d. If PF Payment Is Less Than Rs. 30,000/- But The Member Has Rendered Service Of Less Than 5 Years.
e. If Employee Withdraws Amount More Than Or Equal To Rs. 30,000/-, With Service Less Than 5 Years But Submits Form 15G/15H Along With Their PAN more
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That is good information sir, thank you.. I have pf lying in 4 diff accounts(all are dormant /in active now) all put together about 8 years of service but nowhere 5 years of service. Now i am a freelancer, hence no active pf account.. Can i withdraw from all these accounts and along with my respective relieving letters prove that I withdrew an amount that was collectively for more than five years of service, and there by claim it to be non taxable - Most likely a TDS will be done, when i withdraw the amount, hence I have to ask for a refund in ITR.. Is this option available for me? If not, what is the best solution.. more
Mar 20
Dear Mohit Pande Sir, National Coordination Committee of Pension Scheme. has demanded minimum Pension Rs 7500/-/ to the EPF Pensioners and amendment to this effect is to be initiated by the Central Government in coming winter session in Parliament amending long awaited Pension rules .In this reference National Coordination Committee is on chain hunger strike at Janter Manter since 4 th December to 6 th December followed by agitation on Monday ,7th December . The officials of National Committee Nagpur in its Press. Conference held at New Delhi on 5 th reiterated with great regret towards Central Government for ignoring demand of hike in Pension .After 1952 the Pension rules were amended followed in existing 1995 and in spite passing 20 years the rules are not amended . During service tenure of 35 years of an employee 20 Lacs are deposited towards Pension Fund but after Superannuation an employee gets from Rs200/- to 2500/- as told by President Coordination Committee ,Mr Prakash Yende attended by all other officials including Prakash Pahak General Secretary ,Anil Kusare Treasurer . A report pertaining to 1995 Pension amendment by Mr Bhagatsing Koshiyari was submitted to Central Government on 3rd Decemver 2013 and BJP Portfolio had assured to get itduly amended within 90/days of its coming on power but in spite passing 18 months the said pension rule is not amended and Pension hike is awaited till date . This news has appeared in Dainik Sakal news paper Pune /Pimpri edition of today dated 6 th December 2015 . I request your goodself an all the EPF and Pensioners to have acton in this regard to strongly press for genuine demand so that Central Government think over and increase minimum Pension duly by amending 1995 EPS Pension Scheme in best interest of all we Pensioners in this winter Parliamentary Session only . Regards . Kindly mention your Cell Phone No Your all EPF posting are foynd most informative Ravindra D Pathak Cell Phone 09301940363 Email ravindrash22@gmail.com more
Dec 06
Dear Mr. Om Prakash Agarwal, The answers to your queries based on the information provided by you are as under: 1. Payment of Employer's contribution does not depend on length of service. It appears that the previous employer was covered under EPF Act. She can withdraw the total amount including her contribution, employer's contribution and interest accrued. 2. Taxability: Amount received is fully exempt in case of an employee who is in continues service for a period of 5 years or more. Full exemption is also available for employees who not completed 5 years because of his ill health, discontinuance of employer’s business or any other reason which is not in control of employee. If account is transferred to new employer then the previous service from whom the account is transferred is also considered as a service period. If none of the above conditions satisfy then the amount will be taxed as unrecognized EPF. Also concessions availed under Sec 80C will be withdrawn. Employee’s own contribution is not taxable but the interest thereon is taxable under “Income from Other Sources”. Both employer’s contribution and interest thereon is taxed as “Income from Salary”. However I suggest that you should meet PRO at EPF Office in your city to get clarifications on the individual case. more
Dec 05
