Shivani (Learner) (1881 Points)
05 November 2016Dear Friends
In order to escapt tax from RPF at the time of job change in case of an employee who has NOT completed 5 years of continuous service with employer, employee needs to transfer balance of RPF with old employer to the RPF account maintaine by new employer.
But my query is what to do if the new employer doesnt cover under the eligibility of EPF and thus there is no such thing as PF facility in new job?
How will employee escape taxation of PF in above case?
regards
shivani
MAYUR BIYANI
(Assistant Manager-Taxation & Accounts)
(142 Points)
Replied 05 November 2016
Shivani
(Learner)
(1881 Points)
Replied 06 November 2016
Dear Mayur
I know what u said but my question is that new employer doesnt fall within the purview of PF Act.
How will employee save tax in such a case?
Regards
MAYUR BIYANI
(Assistant Manager-Taxation & Accounts)
(142 Points)
Replied 07 November 2016
MAYUR BIYANI
(Assistant Manager-Taxation & Accounts)
(142 Points)
Replied 08 November 2016
Shivani
(Learner)
(1881 Points)
Replied 08 November 2016
Dear Mayur
Its not the duration of EPF that gets you exemption its the duration of the service which does.
Just because the money has been kept in PF account for more than 5 years will not make it exempt, but the duration of service should be more than 5 years.
The duration of service with new employer would have been included in computing 5 years had employee transferred PF balance to new employer but in this case new employer has no RPF as it doesnt come under PF purview.
So my query remains as it is, what to do in such a case?
Also that the money in PF will stop earning interest after 3 years is a thing of the past.
This was done by UPA but Modi Government has provided interest facility to all PF accounts including those lying inoperative for more than 3 years.
Please tell how to save tax in such a peculiar situation where the new employer does nto have PF faciltiy?
regards
CAclubindia
