PF withdrawal

POSTED BY Deepak Chachra ON March 3, 2012 6:03 pm COMMENTS (11)


Am thinking of withdrawing my PFs from 2 of my previous employers. I served with each of them for 39months.

Would the PF withdrawal be taxed (TDS)? Under what conditions is PF withdrawal not taxed (TDS)?

Waiting to hear back.

Thank you,
-Deepak Chachra

11 replies on this article “PF withdrawal”

  1. Deepak Chachra says:

    Thanks everyone, for the advice. I would submit the forms to transfer my PF from both the previous employers to the new employer whom I have just joined.

    @Manish, I would use RTI at the necessary point. Thanks for the article 🙂

  2. BanyanFA says:

    Hi Deepak,
    As suggested by Ashal, why don’t you consider transferring your PF from earlier organisations to your current one. PF is one of the best debt investments available around and should be used to build long term wealth.


  3. Deepak

    I am not sure if you did the formalities of transferring the PF transfer papers and gave to your employers , because if you did and then your employers sent it to PF departments , then from that point, they are not responsible for what happens next.

    Anyways .. leave that point . Good news for you .I just published an article on how to use RTI to get answers to your EPF related issues . So please go through :

    I am sure this will work for you now !


  4. Dear Deepak, If you are already in a job, please get your prev. PF amount transferred to your new PF account.



  5. Deepak Chachra says:

    @Rmohan: As I said, the last employer (with whom I just quit after 39months!) has terrible staff in finance and admin departments, that is VERY LETHARGIC. They are masters in making excuses for not working. So they have not.

    It also did not help that in between for 18months or so, I was not in India… they had sent me to US for an assignment, so I could not follow up as diligently i.e. they ignore me on personal follow-ups, so e-mail follow-ups are even easier to ignore!

    Do I now fill up the PF transfer form for transferring PFs from both the previous employers? i.e. transfer the PF to the employer with whom I would now start working in another 15-20days.

    Thank you for the replies, so far.

  6. Dear Rmohan, I’m not in doubt. The benefit of continuation of service of 5Y from 2 or more employers is available only if the PF is transferred from old employer to new one.

    Here in the query, the transfer of prev. PF amount did not happen, so the question of zero tax does not arise.



    1. says:

      @Ashal — yes I did not notice that there are 2 PF accounts.

      @Deepak – any reason why you did not transfer the PF account from 1 employee to another?

      One more thing, maybe this might rub a few people the wrong way since it’s against the Indian Government, I don’t have much faith in PF as such since the pain to get the money transferred / withdrawn can be too much (read: you may need to pay bribes). But with RTI etc. this is changing, so my views may be a bit outdated

  7. says:

    Dear Ashal,

    I think you are mistaken in your tax treatment of PF. The employee need not be employed with 1 employer for 5 years. He needs to be continuously employed for 5 years. It can be with multiple employees with a reasonable break between jobs. Then the amount is not taxable.

  8. Deepak Chachra says:

    Thanks Guys for the reply. I was thinking about withdrawal since the employers are behaving VERY LETHARGIC in transfer of PF. In my case, moreso, since I moved from Bangalore to Pune. The current employer, whom I quit after 39months of service, could not get my PF transferred from Bangalore to Pune, in all these 39months! All along, they kept giving me some or other bureaucratic hassle that has been holding them back!

    I am all for growing my PF kitty, for my future usage, but with the lethargy that I see with the employers, its terrible to see that that money is lying idle (earning no interest as per new govt rules).

    So, either am mis-informed (about new govt rules) that since there is no addition to PF because the employee has already quit and his PF is not being added-to by the employer, the government would pay no interest. Or, on the other hand, if there is any other way to expedite the PF transfer, please let me know.

    Waiting to hear back. Thanks!

  9. Unless it is really an emergency do not withdraw the PF amount [Vacationing, new car, home loan down payment are NOT EMERGENCIES]. Just keep transferring EPF corpus from one employer to next. It may be very tempting to access this corpus in EPF but let it grow untouched for decades which is when you will realize how much it can grow to.

  10. Dear Deepak Chachra, please do note that for non taxable PF withdrawal a minimum 5Y of service with an employer is mandatory. In your case, as you have completed only 39 months with each of the 2 employers, the withdrawal ‘ll be taxable.

    Why are you not opting for transferring the prev. balance to your current employer?



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