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How to transfer an EPF account? Why is it necessary?

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Updated: Monday, April 22, 2013, 10:13 [IST]

How to transfer an EPF account? Why is it necessary?

In an era where employee turnover is high, it's extremely important to know, understand and transfer the balance in your emplyees providend fund (EPF) account.

Here are a few things to know on how to transfer an EPF account from the previous employer to the current employer.

Steps to transfer your EPF account:

  • Get Form 13 (You can get it from your employer or you can download)
  • One should be aware of his old PF account number
  • Fill in all the details of your previous company
  • Fill in your new PF number allotted to you
  • Submit to your HRD 
  • HRD will fill in your other details and obtain a signature from an authorised signatory.
  • Form will be submitted to PF office.

How it works?

When you submit your application along with Form 13, one copy will be sent to your previous company and the another copy will be sent to Provident Fund department. Your old employer will pull all your data like number of years worked and other things. Once the company completes the procedure it will sent to Provident Fund department and one copy will be sent to you.

How to track Employees' Provident Fund claim status online?

However, the whole procedure should take around one month.

Withdrawal of EPF account

In case, if you want to withdraw you have to wait for 60 days after your resignation than you have to apply for withdrawal. If you are sure of withdrawal than you have to fill the form 10C.

Taxation

If any withdrawals are done before five years, you are liable to pay tax. So, it is recommended to always transfer your account.

In such cases, you will have to pay tax on the interest earned on both your and the employer's contribution to the EPF.

Know more about how to check EPF balance online?

Reasons for rejection/delay in transfer/refunds

  • Mismatch of name, signature 
  • Mismatch of date of joining or resignation 
  • Wrong PF account number 
  • Address not updated 
  • Incorrect bank account details 

So, be careful while filling the form and fill in the details appropriately. Or you EPF claim will not be processed on time.

Why is it necessary to transfer?

 In case of withdrawal you have to pay tax on interest earned which will dampen your savings plan. In case when you transfer you compulsorily save a minimum 12% of the basic and dearness allowance (DA) from your salary every year and in most cases, the employer also makes an equal contribution.

If the account is continued. it can earn 24% of the amount held in your account which can act as pension once you are 50 years old, and will be eligible for full pension when attaining 58 years of age, under the Employees' Pension Scheme.

By the time you retire you will be able to fetch a huge amount from simple contribution and can aid as pension in your old age.

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What are the different forms available for the withdrawal of Employee Provident Fund (EPF)?

EPF Form 13 : Form-13 is used to transfer your Provident Fund or Pension from one account to another.
EPF Form 10 C : Form 10 C is used to claim EPF withdrawal benefit/scheme certificate
EPF Form 10 D : Form 10 D is used to claim the pension fund invested under EPFO (2 copies :If within state or 3 copies : If outside state).
EPF Form 19 : Form 1 is used to claim final settlement of your Provident Fund.
EPF Form 20 : On death, nominee or legal heir of the member can use Form-20 to claim Provident Fund.
EPF Form 31 : Form 31 is used to claim temporary withdrawal or advance under Employees' Provident Fund scheme '52.
EPF Form 5IF :Form 51F can be used by the person eligible to receive the Employees' Provident Fund dues of the deceased member who died while in services.

GoodReturns.in

Topics: tax, ppf, epf
Story first published:  Friday, December 7, 2012, 9:40 [IST]
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