I worked with two different establishments from 2011 to 2015 and 2015 to 2016, respectively, for which I was assigned two different UANs and PF accounts. My current organisation, for the past eight years, does not have a provision for PF and, therefore, can not transfer the previous PF accounts.
Is there an online process for merging the two accounts? Despite 10+ emails, I have not received a response from the PF office. Would there be a tax liability on withdrawal of this amount as the total PF contribution period is below 5 years even though I have been in service for over 10 years?
Under the rules of the EPF scheme, while each individual would have a separate member ID for each employer, only one Universal Account Number (UAN) is permitted for each individual. In this case, as you have been assigned two different UANs, you would need to merge the UANs and the PF accounts. This process can be undertaken online on the EPFO website after logging into your UAN.
As your current organisation does not have a provision for PF, you would need to withdraw the balance in your PF accounts by filing a claim. However, as the claim can be filed in respect of only one UAN and PF account, you would need to first merge the UAN and then transfer the balance from the account which was opened during your employment from 2011 to 2015 (say establishment A) into the account which was opened during your subsequent employment in 2015 (say establishment B) by filing Form 13. For the merger of the UAN you should select the ‘one member and one EPF account’ on the EPFO website after signing into with the UAN credentials in which the earlier UAN is to be merged.
Also Read: If you have more than one Universal Account Number for EPF, do this now
The transfer of the PF accounts would need to be approved online by either establishment A or establishment B. Once the balance in the PF accounts is transferred and is reflecting in your passbook, you can file a claim for withdrawal of the entire balance of the PF.
Withdrawal of the accumulated balance of PF as on the date of leaving employment shall be exempt as you have rendered continuous employment for more than 5 years. However, interest accumulated after the cessation of your employment in 2016 would be taxable in your hands.
Also Read: Why withdrawal of money from your PF is fraught with challenges
I worked for a private company for 4.5 years up to October 2015 but did not withdraw my EPF. I have now withdrawn the amount after nine years at the age of 58. Is the withdrawn amount taxable?
The taxability of the accumulated balance of EPF on withdrawal depends on your period of employment and would not depend on your age at the time of withdrawal. Therefore, the fact that you have withdrawn the balance after turning 58 years would not result in your withdrawal being exempt as your continuous period of employment was less than five years. Further, in such a scenario, the EPFO shall deduct TDS on the amount payable.
Mahesh Nayak, chartered accountant, CNK & Associates.