Unable to transfer pf as new company is not enrolled to pf

On 11 February 2014 5 Replies

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thethinker

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DSE

Points: 26

Hi,

I worked in company A for 3 years and 6 months and moved to company B 2 years back. The Problem I am facing is to what to do with the PF account, I have with company A as the company B doesnt have PF in their payroll. I checked with the HR of company B and he said that the requirement for PF by government is less than Rs. 6500 from Basic salary +DA , and company B doesnt have any employee below that salary. This way they dont have PF. I am stuck now. I want to transfer but I cant because company B doesnt have PF. And for this no fault of mine if I withdraw this money I will be charged 30 % tax( AS READ IN OTHER FORUMS). Please suggest me what to do best in this case. Also will I not get that 8.50 % interest that we get per year?

On 13 February 2014

CA Archana Yadav

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Points: 58

Dear thethinker,

No option but to encash the PF, else you will lose interest also after 1 year. You can plan to save your taxes once you are encashing the PF.

On 13 February 2014

thethinker

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Thank you Archana. Can you please explain how to plan on saving taxes will work for this situation? I have been advised that I can file for income tax returns and get some tax refunded. Are you talking about the same thing? I admit I am not aware how it works, I can share more information if you need. Please let me know what exactly to do. Many thanks .