In case there is any unclaimed amount in PF, the employee has the option to either withdraw or transfer the amount to the current employer. All the withdrawals made before the completion of 5 years is classified as taxable income.
The Employee’s Provident Fund or EPF, can prove to have many complications for employees all over the country. Just the thought of the hassles of legal procedures make people just not even try. he Government of India, has now made it easier for the working class to access their PF account. But still the EPF holds as much as Rs. 27,000 crore in PF account that are inactive, making the common working man go through problems of limited funds for their own expenses.
The EPFO has now made it easy for people to get access for their own money, and have set up a helpline as well. The PF earns interest and is tax free, this helpdesk will provide information that can be required by the employee and will also keep track of old accounts. It is very common for individuals to lose track of their previous PF accounts including the PF numbers employer’s details etc that is required. All one needs to do is pick up the phone and reach out to the helpdesk with all their questions. Alternatively, employees can also visit the EPF website to check on the for all the details they require and you will be able to track down your inactive account. All you will need to do is fill in some basic details on the first page, which will give the EPFO to track the employer’s details of the PF account you once held with them. Once the details are found you will able to withdraw the amount available under your name.
How can you withdraw these unclaimed funds?
The applicant can either PF transfer to their current employer or can withdraw the amount. Any withdrawals made within a 5 year period falls under a taxable income, it is generally more sensible to transfer the amount. And the same withdrawal will not be taxable if withdrawn after a period of 5 years.
As a result of these processes being available to the common man, over the past 4 years there has been a steady growth in the amount of unclaimed/inoperative accounts being checked. claimed and paid out to the applicants.