Team-BHP (https://www.team-bhp.com/forum/)

-   Shifting gears (https://www.team-bhp.com/forum/shifting-gears/)

-   -   The "Provident Fund" Thread (https://www.team-bhp.com/forum/shifting-gears/46474-provident-fund-thread-6.html)

The withdrawal from PPF is tax free, I can confirm since I had withdrwan for my Fiesta purchase.

Whereas for EPF I am not too sure. In fact I read on the net somehere that you can consider the withdrawal from EPF either as a loan or not. In case you want to treat it as loan then the interest would be levied on you. IMO you need to withdraw the amount not as a loan since your requirement meets the withdrawal criteria.

Thanks a lot. :thumbs up

Taking a loan from EPF is also an option, but I am not too keen on another loan since I already have a home loan and car loan. Also, one can't take another loan from EPF till the previous loan has been repaid.

Rohan

by withdrawal, did you mean closing the PF account and taking the whole amount ? Or is it like taking some money x out of your amount (x+10x) ?

I have a PF account which is lying idle for 3 years. If I close this and withdraw this amount, is the amount taxable ?

This account was getting transfered right from 2000 when I started my career and in 2007 when I resigned from the company (2 firms in between)

I was referring to the PPF account and I did not close the PPF account just withdrew applicable amount.
Again do you mean the PPF account? For PF account you can withdraw only for some limited conditions like clearing home loan, building a house, marriage etc as specified in the rules. For PPF account no such rules are applicable but there is a limit on the amount you can withdraw.
I think now you are referring to the PF account.

You can now find out your claim status online at this address.

I had completed 4 years of EPF account by the time I left my previous company, and my current company does not have EPF (we are under 20 employees).

my first pf account started in may/june 2006, and I left my previous company in the month of july 2010 (I got my old pf transferred to this account), and there is no pf deposit into my account since august 2010.

I am now planning to buy a house and planning to withdraw the PF amount.

1. Am I eligible for a PF withdrawal immediately, without being taxed?
2. Can I withdraw after waiting until july 2011, without being taxed?
3. Or should I be waiting for the PF deposits to complete 5 years (60 months of deposits)?

Thanks in advance.

I don't have any PPF account, the above reference is only to EPF account.

Don't think there is any way of saving tax in this case. PF counts 5 years as 60 months of deposits. Since your current company is not depositing PF, 60 deposits would not happen.

@rishie,

+1 to what Netfreakbombay said. Any PF withdrawal before 5 years would be treated as income and taxable as per the IT rates. PF withdrawal after 5 years would be free from tax which is not the case with you.

You can withdraw completely at any time for the valid reason since wiating till July 2011 would not matter as there are no PF deposits. You can visit the EPFO website and download the relevant forms and apply for withdrawal.

Thanks for the replies.

@ghodlur : Do you mean, even if there are no deposits into the account I can withdraw after july 2011, without tax?

I was working for my previous company from 2005 to 2008 (3 years in total). Then shifted to my new company where I have been working since mid-2008. I did not get my EPF account transferred. Now can I withdraw money from my previous account without getting taxed?

No, since deposits were done for less than 5 years, it would be taxed.

However you can "merge" these two accounts. Talk to some PF consultant (via HR) to get details.

^^ Thanks buddy. Appreciate the quick response.

I moved out of my previous org last year may and subsequent to that I submitted my PF withdrawal form during july 2010. But the organization is currently undergoing some financial crisis and despite numerous followup and requests they have still not submitted the form to the PF authority. Seems like they have not deposited the employer part of the contribution since one year to the PF accounts. I call them every week and every week i get a tentative date but the work is still not done and this has been going on for almost six months now. Even as of today they are non-commital on when its going to happen. They have not responded to any of my mails so that there are no official committment records.

Need some guidance here as to what are the options that i have here. How can i get my PF withdrawn? I worked in the previous comp for close to 5 years and its a substantial amount that we are talking about

Is that organization under same PF commissioner as current one? If it is, then you can talk to him/her to get some guidance. Not depositing PF contribution is a serious lapse and it can be worked out to deoposit only your money (squeaking wheel gets the grease).

No Rishie,

What I meant was since there are no deposits continous for 5 years, any amount accumated as on date can be withdrawn but is taxable. Had you continued putting in the money till July 2011, you would have been able to withdraw with zero tax.