I had applied for PF withdrawal by submitting Form 10c & 19 from previous organisation, but they are asking declaration from me that I am not working with any other company .If i declare the same then they can proceed for the further for withdrawal otherwise they transfer the PF to the present company.
If I declare that I am not working any where, It’s illegal or generally peoples are doing the same.
Please advice.
Pushpraj Anand
From India, Wardha
If I declare that I am not working any where, It’s illegal or generally peoples are doing the same.
Please advice.
Pushpraj Anand
From India, Wardha
Hi Pushpraj Anand,
This is a real good question.
Well, people have a wrong notion that PF transfer is a tedious process and hence majority will suggest to withdraw.
One of the clause for withdrawal is "that you need to declare that you are not working". . And many people misuse this feature to get the money without releasing what they are about to loose. This Clause of "Disclosure" is actually a "Safe Guard clause" by the government to ensure that the "PF" benefit is not discontinued by the beneficiary.
I Suggest, do not "withdraw" your PF. If you continue your PF more than 5 years and above, you will be eligible for "gratuity" and also a good "rate of interest" on the fund in "PF Account". Infact I would suggest never withdraw your PF in your service, expect for any emergency. Tax benefits are higher in PF.
I further suggest "Seek PF Transfer" to your new company, its a saving in disguise. Even if your new company does not have PF (As most new generation company avoid PF scheme since they do not want to get into this tedious filing work), you insist that you want PF. All companies under Indian various ACT are obliged under law to give you that service, if you have an existing PF.
Also, a piece of guidance to all employees, insist on employee PF, its a saving in disguise, you will realize when you grow old.
All the best.
Ukmitra
From Saudi Arabia, Riyadh
296This is a real good question.
Well, people have a wrong notion that PF transfer is a tedious process and hence majority will suggest to withdraw.
One of the clause for withdrawal is "that you need to declare that you are not working". . And many people misuse this feature to get the money without releasing what they are about to loose. This Clause of "Disclosure" is actually a "Safe Guard clause" by the government to ensure that the "PF" benefit is not discontinued by the beneficiary.
I Suggest, do not "withdraw" your PF. If you continue your PF more than 5 years and above, you will be eligible for "gratuity" and also a good "rate of interest" on the fund in "PF Account". Infact I would suggest never withdraw your PF in your service, expect for any emergency. Tax benefits are higher in PF.
I further suggest "Seek PF Transfer" to your new company, its a saving in disguise. Even if your new company does not have PF (As most new generation company avoid PF scheme since they do not want to get into this tedious filing work), you insist that you want PF. All companies under Indian various ACT are obliged under law to give you that service, if you have an existing PF.
Also, a piece of guidance to all employees, insist on employee PF, its a saving in disguise, you will realize when you grow old.
All the best.
Ukmitra
From Saudi Arabia, Riyadh
Mr. Mitra is right.Generally hr persons with little knowledge suggest employees to withdraw.But without any necessity one should not withdraw his PF.If you transfer your pf and continue this for 5 years,10 years,20 years you will get benefits accordingly.PF is for employees social security and this will secure your future and will care for tax benefit,loan benefit,insurance benefit & pension benefit.Always try to avoid withdrwal.
From India, Delhi
From India, Delhi
Dear Pushparaj Anand,
In PF there is a Law that in order to withdraw the PF amount a declaration should be given that the employee is not working in any other company. Transfer or withdrawal it is the wish of the employee and the employer has no right to decide on it. More over if your employer is adament on their stand you can submit the Form 10C and 19 yourself and if your employer is not ready to counter sign your application it can be done by the manager of the your bank, magistrate, Gazetted officer, sub post master etc.
Even then according to me as noted by Mr Ukmitra it is better you transfer your Pf amount to the new company for better benefits.
From India, Kochi
In PF there is a Law that in order to withdraw the PF amount a declaration should be given that the employee is not working in any other company. Transfer or withdrawal it is the wish of the employee and the employer has no right to decide on it. More over if your employer is adament on their stand you can submit the Form 10C and 19 yourself and if your employer is not ready to counter sign your application it can be done by the manager of the your bank, magistrate, Gazetted officer, sub post master etc.
Even then according to me as noted by Mr Ukmitra it is better you transfer your Pf amount to the new company for better benefits.
From India, Kochi
Hi Mehrunisa,
In practise, most of the company demand this. But this is just a formality since in the PF/Gratuity withdrawl form, there is a note as below :
Quote:
In the case of submission of application for settlement under clause (s) of sub-paragraph (i) and in clause (b) of sub-paragraph (2) of paragraph 69 of the EPF Scheme, 1952, the claim should be submitted after two months from the date of leaving service provided the member continues to
remain unemployed in an establishment to which the Act applies.
Unquote
As you will see the last line of note clealy implies that the beneficiary needs to be unemployed and this onus of responsibiilty is on the organization that submits the form to the PF authority and inorder to keep themselves with any future liability, most company have the same filled by beneficiary who wish to withdraw the PF/Gratuity. Its just a precautionary step.
Ukmitra
From Saudi Arabia, Riyadh
In practise, most of the company demand this. But this is just a formality since in the PF/Gratuity withdrawl form, there is a note as below :
Quote:
In the case of submission of application for settlement under clause (s) of sub-paragraph (i) and in clause (b) of sub-paragraph (2) of paragraph 69 of the EPF Scheme, 1952, the claim should be submitted after two months from the date of leaving service provided the member continues to
remain unemployed in an establishment to which the Act applies.
Unquote
As you will see the last line of note clealy implies that the beneficiary needs to be unemployed and this onus of responsibiilty is on the organization that submits the form to the PF authority and inorder to keep themselves with any future liability, most company have the same filled by beneficiary who wish to withdraw the PF/Gratuity. Its just a precautionary step.
Ukmitra
From Saudi Arabia, Riyadh
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