Query regarding EPF withdrawal and tax implication

POSTED BY AJ ON September 7, 2012 10:50 pm COMMENTS (2)

 

I worked with company A from Jan 2007 to Mar 2010. During this time, i was out of the country from Dec 2008 to Mar 2010 during which no amount was deposited in the company A EPF account. After Mar 2010, i went for my higher studies and joined company B in May 2011. I tried to transfer the EPF amount from company A to company B but for some reason the request was rejected. Now i want to withdraw the amount from company A EPF account and have a few queries regarding that.

 

  1. Is such kind of an EPF withdrawal allowed? I have read that if I am still working EPF withdrawal is not allowed. 
  2. Since there have been no deposits in company A EPF account, it would be dormant. Will it cause a problem for the withdrawal?
  3. What is the tax implicaiton on the withdrawn EPF amount? Since its been more than 5 years since the date of EPF account opening in company A, would the tax liability be zero?
  4. What would be the approximate time taken to withdraw the money?

 

 

Thanks for your help!

 

 

 

2 replies on this article “Query regarding EPF withdrawal and tax implication”

  1. swinger says:

    Hi I m Deepika
    I worked in Kingfisher Airlines for 5 years.
    I left company one year back. I sent PF Withdrawal forms to them twice but there is no response. I even checked at EPFO site but it says that they never received my PF withdrawal application.

    Now i decided to submit my PF withdrawal application Directly to EPFO office Bandra after writing an application and getting it signed by a Gazetted officer.

    My query is whether writing an application and getting is attested by a gazetted officer is enough to claim EPFO ?

    My next query is where to submit form 19 and 10c?
    my PF a/c No is MH/47573/3556 ( earlier it was MH/BAN/0047573/3556)
    It seems that it is from Bandra

    Can anyone please help me in providing the Address where i can send my withdrwal forms..
    Thanks in advance
    Deepika

  2. Dear AJ, as there is not a continuous service, the break ‘ll make your PF withdraw taxable. Please withdraw your amount right now as being in dormant mode, you are not earning any interest on your amount.

    Thanks

    Ashal

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