Epf withdrawal

Tax queries 1119 views 9 replies

Sal

53 Points Joined July 2011

Hello,

I have been working in private sector since last 9 years and have EPF contributions by me and employer since then.

Around 4 years back I switched jobs and joined my current orgnaization . New employer has EPF trust whereas previous employer had EPF account with EPFO.

New employer's EPF trust was not recognized by EPFO so inspite of repeated attempts, EPF transfer from EPFO to the current employer's EPF did not happen. Regarding this, there was a legal tussle going on which got resolved in May, 2011. Now, new employer's trust is recognized but before making the EPF transfer there are some procedural hassles which are going on since last 10 months. This may go on and on.

With new EPF ruling (3 yrs of inactivity), I am loosing money on my previous employer's EPF amount since June, 2011. Would you please suggest what course of action should I take to prevent monetary loss ?

Would EPF withdrawal the best solution in such a situation ? Would it attract taxation ?

Regards,

Salil

Replies (9)

DIBYENDU

SERVICE

266 Points Joined August 2008

If u withdraw EPF it does not attract Income tax , because you have completed more than 5 years service in your previous employer, but you looser for Pension claim as your service period was not more than 10 years.

Sal

53 Points Joined July 2011

Thanks for the reply. Actually, I did not complete 5 years with previous employer. I worked with FirstEmployer for 1 yr, SecondEmployer for4 yrs and with the CurrentEmployer it has been almost 4 years.

So, would it attract taxation ? at what rate - normal income tax rate or some special rate ?

Can I do anything to avoid interest loss on my previous employer's EPF ?

Regards,

Salil

kavitha

studying final

830 Points Joined December 2007

i am sharing a link it might useful to u. i can understand ur problem sir.

https://www.jagoinvestor.com/2012/03/rti-for-epf-withdrawal-or-transfer.html. if it sovles dont forget to reply me it may useful to others also.am i ryt?

Sal

53 Points Joined July 2011

Thanks Kavitha. I have posted my complaint online at https://epfigms.gov.in/

If they don't reply within a week, I will file an RTI.

Any other suggestion will also be appreciated.

Regard,

Salil

kavitha

studying final

830 Points Joined December 2007

have you submitted form 13 revised?

Sal

53 Points Joined July 2011

Kavitha, I tried to but EPFO is not accepting EPF transfer applications till my new employer provides all the records for all employees for last 8 years in hard as well as soft copy. My employer says that this is going to take some time (months). Till that time, EPFO is not accepting any transfer application.

kavitha

studying final

830 Points Joined December 2007

just submit it n afterwards apply to rti

kavitha

studying final

830 Points Joined December 2007

dont lose patience personal advise. keep on trying you can do it

Sal

53 Points Joined July 2011

Thanks Kavitha.

Related query:-

I have worked in 1st company for 11 months, 2nd company for 3 yrs 11 months, and working in 3rd/current company since last 3 yrs 10 months. Can I withdraw EPF contribution of company 1 and 2 without attracting any tax ?

Regards,

Salil