Welcome the first post.
Like I was, many of you might have little understanding of PF. Here is a FAQ section about it.
Q: What is PF?
Provident Fund.
Q: What is EPF?
Employee Provident Fund. Similar to PF, EPF is for private companies and PF for government employees.
Q: How much is deducted from your salary?
An amount of 12% of your basic salary is deducted as Employee contribution (EE) and an equal amount is paid by your company (Employer - ER). Some companies deduct a minimum of 780/month.
Q: How to check your PF balance?
Your SMS will be EPF Balance in A/C No. BG/BNG/24476//1010 is EE Amt: Rs 98248 ER Amt: Rs 70344 as on 03-12-11 (Accounts updated upto 31-03-2009) - EPFO
EE amount is paid by you. ER is paid by your company. The difference amount has been moved to Pension fund
Q: What is pension fund?
As per rules a part of your ER PF goes to pension fund.
"a part of contribution representing 8.33% of the employees’ pay shall be remitted by the employer to the Employees’ Pension Fund. See www.epfindia.com for more details.
http://www.epfindia.com/intworkersnew/hand_book.pdf
Q: How to convert your old PF number to new PF number?
Use the link provided there to get your new PF number. http://epfindia.com/estt.asp
Easiest way is select the state and type part of your company name. (eg. Intel)
Q: When do we get the money?
When you retire!!
Q: When can I withdraw the PF amount?
Generally people withdraw when leaving the company.
Q: What forms to be filled for withdrawal?
We need to submit 3 forms
1. Form 19 - For claiming PF
2. Form 10C (EPS) - For claiming Pension Fund
3. ECS Mandate form - For direct deposit to your bank account
Q: Where to submit the withdrawal form?
It has to be submitted in the last company
Q: What happens when I move to a different company?
You can apply for PF transfer form. Fill a form with your existing PF details and submit in the new company. They will forward it to your old company and do something.
If you don't submit, a new PF account will be created. (Now I have 3 PF accounts!)
Q: Is the PF amount taxable?
Yes and No.
If you are in company/service for 5 years, then PF withdrawn is tax free.
An useful link: http://www.rediff.com/getahead/2008/feb/28trans.htm
Q: Can I take loan from PF?
Yes. There is a possibility. Some websites say the loan interest is 12%. So a partial withdrawal is better in case of long-term loans. Please re-search more before taking important decisions.
Q: How much interest I get on PF?
It is between 8 - 10% as decided by Government of India
Q: What happens if PF account is not used for many years.?
The account is moved to inactive state. After 3 years, you will stop getting interest.
So when you change company, make sure you transfer the PF. (Updated: Dec 2012)
Soon it will be online and hope it will be faster process (April 2013)
Useful Links:
Other Links:
Like I was, many of you might have little understanding of PF. Here is a FAQ section about it.
Q: What is PF?
Provident Fund.
Q: What is EPF?
Employee Provident Fund. Similar to PF, EPF is for private companies and PF for government employees.
Q: How much is deducted from your salary?
An amount of 12% of your basic salary is deducted as Employee contribution (EE) and an equal amount is paid by your company (Employer - ER). Some companies deduct a minimum of 780/month.
Q: How to check your PF balance?
- First get your PF account number. It will be in salary slips or PF accounts from your employer. It will look like PY/BOM/34444//001.
- Go to www.epfindia.com site http://epfoservices.in/epfo/member_balance/member_balance_office_select.php
- Enter the details. Your name should exactly match with the records!!
- Your will get an SMS (in 5-10 minutes) to your phone
Your SMS will be EPF Balance in A/C No. BG/BNG/24476//1010 is EE Amt: Rs 98248 ER Amt: Rs 70344 as on 03-12-11 (Accounts updated upto 31-03-2009) - EPFO
EE amount is paid by you. ER is paid by your company. The difference amount has been moved to Pension fund
Q: What is pension fund?
As per rules a part of your ER PF goes to pension fund.
"a part of contribution representing 8.33% of the employees’ pay shall be remitted by the employer to the Employees’ Pension Fund. See www.epfindia.com for more details.
http://www.epfindia.com/intworkersnew/hand_book.pdf
Q: How to convert your old PF number to new PF number?
Use the link provided there to get your new PF number. http://epfindia.com/estt.asp
Easiest way is select the state and type part of your company name. (eg. Intel)
Q: When do we get the money?
When you retire!!
Q: When can I withdraw the PF amount?
Generally people withdraw when leaving the company.
Q: What forms to be filled for withdrawal?
We need to submit 3 forms
1. Form 19 - For claiming PF
2. Form 10C (EPS) - For claiming Pension Fund
3. ECS Mandate form - For direct deposit to your bank account
Q: Where to submit the withdrawal form?
It has to be submitted in the last company
Q: What happens when I move to a different company?
You can apply for PF transfer form. Fill a form with your existing PF details and submit in the new company. They will forward it to your old company and do something.
If you don't submit, a new PF account will be created. (Now I have 3 PF accounts!)
Q: Is the PF amount taxable?
Yes and No.
If you are in company/service for 5 years, then PF withdrawn is tax free.
An useful link: http://www.rediff.com/getahead/2008/feb/28trans.htm
Q: Can I take loan from PF?
Yes. There is a possibility. Some websites say the loan interest is 12%. So a partial withdrawal is better in case of long-term loans. Please re-search more before taking important decisions.
Q: How much interest I get on PF?
It is between 8 - 10% as decided by Government of India
Q: What happens if PF account is not used for many years.?
The account is moved to inactive state. After 3 years, you will stop getting interest.
So when you change company, make sure you transfer the PF. (Updated: Dec 2012)
Soon it will be online and hope it will be faster process (April 2013)
Useful Links:
Other Links:
- http://www.moneycontrol.com/master_your_money/stocks_news_consumption.php?autono=750106
If you withdraw EPF, you will be taxed at your normal Income Tax rate for that year, i.e EPF amount will be added to your income and the gross amount will be taxed. Generally you will fall in the higher tax bracket.
ReplyDeleteWudn't checking balance of both old and new account give you this info ?
ReplyDeleteI am trying to get my PF account transferred which has been inactive for last 14 years. Any idea on this kind of transfer ?
ReplyDeleteVery useful blog on PF. Thanks Krishna Prasad.
ReplyDelete