The "Provident Fund" Thread

ghodlur · 8th October 2010, 14:18

Quote:

Originally Posted by rohan_iitr

Thanks for the reply.

Like I mentioned, I have completed 5 years for both EPF and PPF.

Can you confirm that the withdrawal would be tax free ?

Rohan

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.

rohan_iitr · 10th October 2010, 10:50

Thanks a lot.

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

joecherian · 23rd February 2011, 13:38

Quote:

Originally Posted by ghodlur

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

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)

ghodlur · 23rd February 2011, 15:41

Quote:

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 was referring to the PPF account and I did not close the PPF account just withdrew applicable amount.

Quote:

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

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.

Quote:

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 think now you are referring to the PF account.

moralfibre · 23rd February 2011, 15:54

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

rishie · 8th March 2011, 13:36

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.

NetfreakBombay · 8th March 2011, 13:46

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.

ghodlur · 8th March 2011, 15:38

@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.

rishie · 8th March 2011, 15:44

Thanks for the replies.

Quote:

Originally Posted by ghodlur

@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.

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

Cesc · 8th March 2011, 16:04

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?

NetfreakBombay · 8th March 2011, 16:53

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.

Cesc · 8th March 2011, 17:14

^^ Thanks buddy. Appreciate the quick response.

Rotorhead · 8th March 2011, 17:39

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

NetfreakBombay · 8th March 2011, 18:07

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).

ghodlur · 9th March 2011, 08:25

Quote:

Originally Posted by rishie

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?

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.

10th October 2010, 10:50	#77
rohan_iitr Senior - BHPian Join Date: Feb 2009 Location: Bangalore Posts: 1,149 Thanked: 865 Times	Thanks a lot. 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
	() Thanks

23rd February 2011, 15:54	#80
moralfibre Team-BHP Support Join Date: Dec 2004 Location: MH-12 Posts: 8,577 Thanked: 14,516 Times	re: The "Provident Fund" Thread You can now find out your claim status online at this address.
	() Thanks

8th March 2011, 13:36	#81
rishie BHPian Join Date: Mar 2010 Location: Hyderabad Posts: 136 Thanked: 38 Times	re: The "Provident Fund" Thread 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. Last edited by rishie : 8th March 2011 at 13:38.
	() Thanks

8th March 2011, 13:46	#82
NetfreakBombay Senior - BHPian Join Date: Jan 2008 Location: Bombay Posts: 1,481 Thanked: 1,130 Times	re: The "Provident Fund" Thread 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.
	() Thanks

8th March 2011, 15:38	#83
ghodlur Senior - BHPian Join Date: Sep 2009 Location: Bangalore Posts: 6,250 Thanked: 4,772 Times View My Garage	re: The "Provident Fund" Thread @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

8th March 2011, 16:04	#85
Cesc BHPian Join Date: Aug 2009 Location: Philly, Gurgaon Posts: 651 Thanked: 288 Times	re: The "Provident Fund" Thread 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?
	() Thanks

8th March 2011, 16:53	#86
NetfreakBombay Senior - BHPian Join Date: Jan 2008 Location: Bombay Posts: 1,481 Thanked: 1,130 Times	re: The "Provident Fund" Thread 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

8th March 2011, 17:14	#87
Cesc BHPian Join Date: Aug 2009 Location: Philly, Gurgaon Posts: 651 Thanked: 288 Times	re: The "Provident Fund" Thread ^^ Thanks buddy. Appreciate the quick response.
	() Thanks

8th March 2011, 17:39	#88
Rotorhead BHPian Join Date: Sep 2006 Location: Bangalore Posts: 939 Thanked: 29 Times	re: The "Provident Fund" Thread 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
	() Thanks

8th March 2011, 18:07	#89
NetfreakBombay Senior - BHPian Join Date: Jan 2008 Location: Bombay Posts: 1,481 Thanked: 1,130 Times	re: The "Provident Fund" Thread 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).
	() Thanks