Once you move to a different company, PF Transfer is one of your most important responsibilities. If you are wondering whether you should withdraw your PF or transfer it, and how to go about the whole process, you are at the right place!
Read this guide by H&R Block to ensure that you receive maximum benefits after retirement from your EPF (Employee Provident Fund).
The online method has been introduced by the EPFO (Employee Provident Fund Organisation) to simplify and digitise the process of EPF Transfer, through the UAN (Universal Account Number). It is a unique identification number for a single individual, who may have multiple EPF accounts/ member IDs.
You must ensure that you fulfil the following pre-requisites before you initiate the online PF transfer process:
SIDE NOTE: The offline method is the traditional way to transfer your EPF, which is now terminated.
In 2017, the EPFO introduced the ‘Composite Declaration Form 11’, which will replace Form 13 in the case of auto transfer. You must ensure that you fulfil the following pre-requisites before you initiate the auto-transfer process:
SIDE NOTE: You can stop the auto-transfer process online, through your employer or by visiting the nearest EPFO office, within ten days of receiving the confirmation SMS/email.
A. The EPFO aims to fulfil transfer claims in three days. However, the time taken for PF transfer varies for every regional EPFO office and individual employer.
A. You cannot transfer PF online without UAN.
A. It is always advisable to transfer your PF instead of withdrawing it. This is because it is taxable if you withdraw it before five years of continuous service; you will also lose the benefit of compounding interest each month on your EPF, if you withdraw it.
A. You cannot transfer your EPF to your bank account if you are currently employed. However, if you are unemployed for more than sixty days, you can submit a withdrawal claim, in which case your EPF will be transferred to your bank account.
A. Visit the EPFO’s “Know Your Claim Status” page to check your PF claim status.
A. You can cancel your PF transfer claim by contacting your nearest EPFO office, within ten days of submitting the transfer request. There is no online method to cancel PF transfer request.
A. “Member ID” is your EPF account number. You can get in touch with your employer to know get your Member ID.
A. When you transfer your EPF, your EPS will not be transferred. Instead, only details of service history are transferred, as EPS benefits are dependent on duration of service only.
Your contribution towards EPF not exceeding Rs. 1,50,000 will provide you with a benefit in the form of tax deductions u/s 80C. Conversely, if you withdraw your EPF, it may be taxable. Therefore, it is wise to transfer your EPF instead of withdrawing it.
When it comes to EPF withdrawal, it is taxable under most circumstances, but can be exempt from tax under some! It is easy to take advantage of such provisions when you have professional help. We have a team of in-house tax experts who can file your income tax returns accurately while giving you maximum tax benefits.