Question ID : 39354

Forget to transfer pf to account maintained by new employer account

An employee was working with Company A for three years. Then he got job in new company B and is remained emplyoed for another 3 years. There is no gap in employment. PF maintained with old employer is not transferred. So there are two PF accounts. After 6 years, PF balance with Company A is withdrawn (Rs 2lakh). PF Trust deducted TDS. Is there any provision which exempts this PF withdrawal inspite of being remaining continuous service for 5 years but PF balance not transferred?

Answer ID : 79139

Hi Mr. Sivaraman, There is no provision in the Act to exempt the PF withdrawal in facts of the case discussed in the query. Transfer of accumulated balance from the former employer to the new employer is mandatory to add the period of service with Company A with the period of service with Company B . As the PF balance is not transferred from Company A to Company B, the period of continued services with Company A and Company B would be considered as 3 years only (separately). Therefore, as the services was not continued for 5 years with Company A, TDS is rightly deducted by the trust.

Answer ID : 79148

Sir In my opinion the withdrawal from accumulated Recognized PF account on fulfillment of certain conditions will be exempt Sec 10(12) CHARAN DASS SHARMA

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