I'm quitting my Indian job of 5 years and going on a sabbatical. What do i do with my PF? - KamilTaylan.blog
12 June 2022 7:17

I’m quitting my Indian job of 5 years and going on a sabbatical. What do i do with my PF?

What should I do with my PF if I resign?

PF money after Resignation. Complete Provident Fund (PF) money can be withdrawn when an individual retires from employment and remains unemployed for more than 2 months. The gazetted officer must certify that the individual is unemployed for more than 2 months for him/her to receive the PF money.

Is PF withdrawal taxable after 5 years?

If you can defer withdrawing funds from your account for five years (continuous service with all employers), withdrawals thereafter will not attract any TDS. If withdrawal amount is less than Rs 50,000, no TDS is deducted.

Can I withdraw PF after resignation?

The employer and employee deposit their contribution with the Employee Provident Fund Organisation (EPFO) every month. Generally, the accumulated or a part of the amount in an EPF account can be withdrawn by the employee in the event of retirement, or resignation.

What happens to inactive PF account?

An EPF account becomes inoperative in four situations:

Until such time, interest will continue to accrue on EPF balances. But no interest will accrue once the account becomes inoperative. After seven years of being dormant, the money lying in such accounts is transferred to the Senior Citizen Welfare Fund by EPFO.

What happens when you resign?

When you resign, you give up all of the responsibilities associated with your job and also lose your benefits, including your salary. Also, you’ll need to give verbal notice to your manager and submit a written notice for human resources to have documentation of your departure.

What is form 31 in PF account?

EPF Form 31 is utilised to file a claim for partial withdrawal of funds from EPF or Employees’ Provident Fund. EPF or Employees’ Provident Fund is a government-backed savings option that can facilitate salaried individuals to build a significant corpus to cover their financial needs post-retirement.

Is PF taxable after resignation?

From a tax perspective, as per Section 10 (12) read with Rule 8 of Part A of Fourth Schedule of the Income-tax Act, 1961 (the Act), the accumulated PF balance due and payable to the employee that is balance to his credit on the date of cessation of his employment, is exempt from tax if he has rendered continuous

Is Form 15G required for PF withdrawal after 5 years?

Employees having 5 years of continuous service can make tax-free withdrawal from their PF account. However, if the withdrawal made before 5 years of service is more than Rs. 50,000 or Form 15G or Form 15H is not submitted it is subject to tax or TDS.

What are the disadvantages of withdrawing PF amount?

Disadvantages

  • The member withdraws amount which is usually blown away by discretionary expenses and retirement savings are back to square one.
  • If the individual withdraws his Provident Fund balance before completing five years then the amount becomes taxable.

How can I close my PF account permanently?

In case you want to make a final settlement, you can fill Form 19 both online as well as offline. You have to follow the steps mentioned below to fill the form online: Login to your UAN account at the EPF Member Portal. Click on “Claim (Form – 31, 19, 10C & 10D)” in the “Online Services” section.

Can I withdraw my PF after 3 years?

You can withdraw your entire PF corpus only after you retire. You will be allowed to retire only after you are 55 years old. If you retire before you attain this age, you will not be permitted to receive your entire corpus. However, you are entitled to obtain 90% of your EPF corpus 1 year before you retire.