One of the painful problems an employee faces when he/she changes the job is, transferring or withdrawing Provident Fund amount from old employer. Employee Provident Fund Office (EPFO) has announced few days back about automating the process of PF transfer and withdrawal / settlement. In this article we would discuss about this new process and how it would run and benefit subscribers or EPFO or employees.
Long awaited process for EPFO subscribers
EPFO subscribers have been waiting for this new process for long time. There are 50 million subscribers of retirement fund body EPFO who would get benefitted with this new process. EPOF would set-up a central clearance house to take care of the online PF transfers or settlements, which would be operational from July 1, 2013.
Also Read : Invest in Spouse’s name to cut Tax
Currently, if anyone changes the job, he/she needs to approach the previous employer for PF transfer. This is so painful that it would take several months to get clearances and transfer the amount. Since several individuals move from one company to another company for better career, transferring the PF from previous employer to current employer is a night mare.
How the Online PF transfer and withdrawal would work?
An EPFO subscriber needs to log into www.epfindia.com and provide his PF number and other relevant details online.
Once he submits his request for either transfer or withdrawal, a tracking number would be generated. This number would be used to track the status of the application.
The PF transfer request would be sent to previous employer and EPFO. Since the onus is on the EPFO to verify the same with previous employer, there is strict deadline by them to employers. EPF would verify the data with previous employer and with current employer and makes the PF transfer.
Also Read : Tax Saving through Home Loan
In case, anyone is applying for withdrawal of the Provident Fund amount, EPF would take the responsibility of verifying with previous employer and settles the Provident Fund amount to the subscriber.
There is no further involvement of an employee during this transfer.
The above process looks simple as the onus lies with EPFO and entire process is through online.
In the long run, EPFO want to provide permanent account numbers for their subscribers so that there would be only one PF number for an employee irrespective of the number of employers he is working for.
Conclusion: This new process would definitely benefit an employee and save time and energy. An employee can concentrate on better things rather wasting his time on this avoidable activity.
About the Author: Manoj Harchandani is a certified TRP (Tax Return Preparer), authorized by Income Tax Department, Government of India. He is a tax planner and investment advisor. If you need ITR filing assistance, tax advice, tax saving tips, short term/ long term investment advice, please write him at manojh.trp@gmail.com
Other Posts:
Importance of filing Income Tax Return (ITR)
Know ITR (Income Tax Return) Forms
Belated ITR fling rules and other aspects
Tax saving thru’ Medical Insurance Policies u/s 80D
Benefits of Income Tax Return (ITR) Filling
Never buy a second house
Invest in Spouse’s name to cut Tax
Never change house before 3 years
Tax Saving through Home Loan
Enjoy hassle free online PF transfer & withdrawal from July 1, 2013
Leave home not liability when you are not around!
Check EPF (Employee Provident Fund) balance online
Why home loan is better than renting
Even home loan prepayment/foreclosure charges eligible for tax benefit now!
How to know status of Income Tax REFUND
Transfer and withdraw Provident Fund in just 3 days
Long awaited process for EPFO subscribers
EPFO subscribers have been waiting for this new process for long time. There are 50 million subscribers of retirement fund body EPFO who would get benefitted with this new process. EPOF would set-up a central clearance house to take care of the online PF transfers or settlements, which would be operational from July 1, 2013.
Also Read : Invest in Spouse’s name to cut Tax
Currently, if anyone changes the job, he/she needs to approach the previous employer for PF transfer. This is so painful that it would take several months to get clearances and transfer the amount. Since several individuals move from one company to another company for better career, transferring the PF from previous employer to current employer is a night mare.
How the Online PF transfer and withdrawal would work?
An EPFO subscriber needs to log into www.epfindia.com and provide his PF number and other relevant details online.
Once he submits his request for either transfer or withdrawal, a tracking number would be generated. This number would be used to track the status of the application.
The PF transfer request would be sent to previous employer and EPFO. Since the onus is on the EPFO to verify the same with previous employer, there is strict deadline by them to employers. EPF would verify the data with previous employer and with current employer and makes the PF transfer.
Also Read : Tax Saving through Home Loan
In case, anyone is applying for withdrawal of the Provident Fund amount, EPF would take the responsibility of verifying with previous employer and settles the Provident Fund amount to the subscriber.
There is no further involvement of an employee during this transfer.
The above process looks simple as the onus lies with EPFO and entire process is through online.
In the long run, EPFO want to provide permanent account numbers for their subscribers so that there would be only one PF number for an employee irrespective of the number of employers he is working for.
Conclusion: This new process would definitely benefit an employee and save time and energy. An employee can concentrate on better things rather wasting his time on this avoidable activity.
About the Author: Manoj Harchandani is a certified TRP (Tax Return Preparer), authorized by Income Tax Department, Government of India. He is a tax planner and investment advisor. If you need ITR filing assistance, tax advice, tax saving tips, short term/ long term investment advice, please write him at manojh.trp@gmail.com
Other Posts:
Importance of filing Income Tax Return (ITR)
Know ITR (Income Tax Return) Forms
Belated ITR fling rules and other aspects
Tax saving thru’ Medical Insurance Policies u/s 80D
Benefits of Income Tax Return (ITR) Filling
Never buy a second house
Invest in Spouse’s name to cut Tax
Never change house before 3 years
Tax Saving through Home Loan
Enjoy hassle free online PF transfer & withdrawal from July 1, 2013
Leave home not liability when you are not around!
Check EPF (Employee Provident Fund) balance online
Why home loan is better than renting
Even home loan prepayment/foreclosure charges eligible for tax benefit now!
How to know status of Income Tax REFUND
Transfer and withdraw Provident Fund in just 3 days
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