thethinker (DSE) 11 February 2014

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

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?

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5 Replies

CA Archana Yadav (FCA) 13 February 2014

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.

thethinker (DSE) 13 February 2014

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 .