The Employee Provident Fund (EPF) or Provident Fund (PF) is known to be one of the ideal investment options for salaried individuals in India. This is because of the features of PF like the EEE (Exempt-Exempt-Exempt). This makes the investment, interest earned, as well as the withdrawal from the PF account free from taxation. However, you need to know that withdrawal from PF account before 5 policy years is liable for taxation as per the Income Tax Act of India. While working with an organization that is registered with PF, you will need to contribute a portion of your salary to the PF account. Your employer will need to contribute an equal portion to it and deposit it to your PF account. A fixed interest rate is earned on the accrued sum until the withdrawal of the money. You can choose to withdraw the money when you retire or when you resign your job from the company. There are two options available for you in case you switch your job, they are:
- You can withdraw the money you contributed to the account and the interest earned for the same.
- You can transfer the accrued sum to a new PF account with your new organization.
To get the complete benefits from investing in a PF, it is advisable to transfer the money from one PF account to the other PF online or offline.
How to Transfer PF from One Account to Another PF online?
The Employees’ Provident Fund Organization (EPFO) governs and manages the PF. The organization continually works to simplify the procedure of Provident Fund. Now, you can operate the functions like withdrawal and transfer of PF account online. EPFO has introduced the UAN (Universal Account Number) which works as one umbrella for all the PF accounts of one individual. The UAN saves the multiple member IDs that are assigned to an employee from different employers. The UAN offers services like storing the details of all the transfers done, an option to link different IDs of one individual provided by different employers, real-time updated passbook, send a request for fund transfer, and much more. Also, you get regular SMS every month for the successful contribution to the PF account. Below mentioned are the steps to transfer funds from one PF account to another online:
- You need to login to the unified portal using the credentials provided, i.e. the UAN number and the password. However, you have to make sure that you have to activate your UAN in the unified portal. Also, the mobile number used for the activation of the portal must be active.
- You need to click on the online services tab and then on One Member-One EPF Account (Transfer Request).
- You need to then verify the PF account information as well as the personal details of the current organization PF account.
- Upon clicking on ‘Get Details,’ you can see the details of the PF account of the previous organization.
- You get the option to choose between the previous employer or the new employer PF account and attest the claim form. You then need to provide your member ID of the employer you choose to claim.
- You need to click on the ‘Get OTP’ tab on the registered mobile number. Once you get your OTP, you need to enter the same in the provided column and click on the ‘Submit’ button.
The employer will receive the notice for approval. The employer needs to enter the employer interface and approve the same. You will then need to fill up Form no. 13 that includes the details like PF number of both the employers, i.e., the previous and the current employer and also download the claim form. Lastly, you need to submit the hard copy of the duly signed claim form to the chosen employer within 10 days of the request.
You also have the option to invest in a secure investment like Fixed Deposit (FD). Prominent financial providers like Bajaj Finance allows you to open FD with attractive discounts and benefits. With quick application procedure and minimal documentation, you can avail high FD interest rates on deposit of sum as low as Rs. 25000. You can check your eligibility criteria from the website and apply online in a hassle-free manner.
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