Hi All,
I resigned from my job 2 months back and filled up the EPF withdrawal form along with a blank cheque of my savings account.Presently I am undergoing higher studies.
Can you please answer the following:
1) Will the EPF withdrawal money be directly debited to my savings account or will I get a account payee cheque by post to my specified address.
2)My EPF account was only 3 yrs 4 months old.So if I withdraw the money this year will it be considered taxable income.I am not earning since April this year(for whole financial year),so do I need to declare the amount (1 lakh) in my IT return for this financial year.
3)How long will it take for my EPF withdrawal to be processes.Do I have to follow up with my company or regional EPFO for it ?
Any help is appreciated.
regards
CP
From United Kingdom, Ruislip
I resigned from my job 2 months back and filled up the EPF withdrawal form along with a blank cheque of my savings account.Presently I am undergoing higher studies.
Can you please answer the following:
1) Will the EPF withdrawal money be directly debited to my savings account or will I get a account payee cheque by post to my specified address.
2)My EPF account was only 3 yrs 4 months old.So if I withdraw the money this year will it be considered taxable income.I am not earning since April this year(for whole financial year),so do I need to declare the amount (1 lakh) in my IT return for this financial year.
3)How long will it take for my EPF withdrawal to be processes.Do I have to follow up with my company or regional EPFO for it ?
Any help is appreciated.
regards
CP
From United Kingdom, Ruislip
Dear CP,
EPF has been mandated by the government for the employees to have some amount of savings, which normally employees would not do as they have various commitments, let it be financial / personal / family matters. When the employee is no longer employed, then he can withdraw his PF amount to sustain himself along with his family. That is the reason that the PF withdrawal takes place only after 45 days of an employees date of relieving from his last company.
To answer your queries:
1) If you have specified a savings account number to which the amount has to be credited, the PF office will send the cheque directly to the bank for the amount to be credited to you. If you have not specified the account number, then the cheque would be sent to your address given in the PF withdrawal form.
2) EPF withdrawals are not taxable under any circumstance. As I mentioned earlier, it is savings on your part, just like Post Office savings / Indira Vikas Patra / Life Insurance policies, etc., which we normally do before the financial year end to avoid our tax liability as also to have some savings to depend on in case the employee is no longer profitably employed anywhere.
As such, there is no need to declare it in your IT return.
3) The normal process is 30 days from the date of receipt of your application at the concerned regional PF office. It might be better to keep track with both your company as well as the PF office so that you know that there are no unseen delays.
Hope this clarifies your queries.
Regards,
Samba Siva.
From India, Hyderabad
1EPF has been mandated by the government for the employees to have some amount of savings, which normally employees would not do as they have various commitments, let it be financial / personal / family matters. When the employee is no longer employed, then he can withdraw his PF amount to sustain himself along with his family. That is the reason that the PF withdrawal takes place only after 45 days of an employees date of relieving from his last company.
To answer your queries:
1) If you have specified a savings account number to which the amount has to be credited, the PF office will send the cheque directly to the bank for the amount to be credited to you. If you have not specified the account number, then the cheque would be sent to your address given in the PF withdrawal form.
2) EPF withdrawals are not taxable under any circumstance. As I mentioned earlier, it is savings on your part, just like Post Office savings / Indira Vikas Patra / Life Insurance policies, etc., which we normally do before the financial year end to avoid our tax liability as also to have some savings to depend on in case the employee is no longer profitably employed anywhere.
As such, there is no need to declare it in your IT return.
3) The normal process is 30 days from the date of receipt of your application at the concerned regional PF office. It might be better to keep track with both your company as well as the PF office so that you know that there are no unseen delays.
Hope this clarifies your queries.
Regards,
Samba Siva.
From India, Hyderabad
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