2 EPF accounts because my company was overtaken by another company – How to withdraw ?

POSTED BY deepaliu ON March 12, 2014 8:50 am COMMENTS (4)

I joined company A on Dec 2007 and worked till July 2009. In between the company is overtaken by other company in June 2009. In the transformation instead transferring/continuing our old PF account, they created a new PF account. So I had 2 PF accounts for the same service.

Now In October 2009 till Nov 2010 I have joined new company where PF was not opted. (I took a break for personal reason from July 2009 to Oct 2009. Apprx. 3 months)

In Nov 2010 I joined the company which has its own PF trust. I have requested PF transfer from my two PF accounts. However 1 PF request was rejected and I withdraw the money from it. Other PF account (from June 2009) was got transferred to my current company PF account.

The company will ask to sign PF transfer/withdrawal form. The company said that if they do not receive a transfer request (with details of new employer) in 2 months, then it will be processed for withdrawal.

Now if my Last working day is 5th May 2014 and mostly I may take a break, below are my queries

1.       If I withdraw my PF amount, how the service period will be considered?

From 1 June 2009 to 5 May 2014 even if there is break in service and PF membership?

2.       If I withdraw my PF, is it taxable?

3.       In PF withdrawal process if it’s taxable, will the PF trust deduct the applicable tax and then credit the PF amount?

4.       If I ask for transfer while separation and not joined other company, company will wait 2 months and not receive any transfer request, automatically my PF get processed for withdrawal (after 5th July). In this case is my PF taxable? [As I read If withdraw it before 5 yrs, then its taxable, after 5 yrs its not]

(As till July 14. my PF membership will be more than 5 years starting from 1 June 2009)

5.       For EPS, how many years will be considered? (In my service tenure my basic was > 6500)

 Thanks

4 replies on this article “2 EPF accounts because my company was overtaken by another company – How to withdraw ?”

  1. ashalanshu says:

    Dear Deepaliu, as the service period of 5Y was not completed, hence PF withdrawal is taxable, no matter you withdraw now or after 1Y.

    For EPS as 10Y service is not completed, you are eligible for cash out (redemption) here also.

    Thanks

    Ashal

  2. deepaliu says:

    Thanks Ashal for the clarification. Can you please comment on below queries

    1.Does this means for the tax free withdrawal of PF 5 year service should be completed and not the PF membership.

    eg. If my service is 4 yrs and I withdraw my PF after 1 year after discontinuing my service , the PF amount will be taxable?

    2. For EPS calculation, how many years will be condisdered for above situation?

    Thanks !!

  3. deepaliu says:

    Thanks Ashal for the clarification. Can you please comment on below queries:

    1.Does this means for the tax free withdrawal of PF 5 year service should be completed and not the PF membership.

    eg. If my service is 4 yrs and I withdraw my PF after 1 year after discontinuing my service , the PF amount will be taxable?

    2. For EPS calculation, how many years will be condisdered for above situation?

    Thanks!!

  4. ashalanshu says:

    Dear Deepaliu, please read my eply given to your similar query in another discussion.

    Thanks

    Ashal

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Download Our FREE Ebook!

Available only for first 100 people today

Download Our FREE Ebook!

Available only for first 100 people today