Can You Transfer PF Balance When Your Current Employer Isn’t Under EPF?

If your current employer is not covered under the Employees’ Provident Fund Act, transferring your PF balance becomes a challenge. The EPF Act allows transfers only between two PF accounts, making it impractical without a new account. Unfortunately, the legal framework doesn’t facilitate direct transfers from private trusts to the EPFO, especially if your current employer isn’t under the EPF regime.

If you plan to stay within the PF scheme and expect your current pf transfer online loginemployer to become eligible soon, you can avoid withdrawing your PF balance. Once your current employer joins the PF scheme, you can transfer the funds from your previous employer. However, be aware that interest on the PF balance stops accruing three years after resignation. Any interest from resignation to transfer becomes taxable.

Under Section 10(12) and Rule 8 of the Income-tax Act, 1961, the accumulated PF balance qualifies for tax exemption if you’ve provided continuous service for five years. In your case, with employment exceeding five years, the entire accumulated balance upon cessation of employment is tax-exempt. Understanding these details ensures a smoother transition and optimal management of your PF funds.

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Nithya Ramani Iyer

Subject Matter Expert (Lead Content) at Vakilsearch

Greetings, fellow enthusiasts! With a career rooted in the vibrant world of media, I have journeyed through various literary avenues, from collaborating as a co-author in numerous books to establishing a decade-long presence in the field of criminology. My academic journey boasts an MSc in Psychology and a BSc in Visual Communication and Design, both earned in the bustling city of Mumbai. Currently nestled in the heart of Chennai, my explorations know no bounds.

As an individual with an insatiable curiosity for life, my interests span across diverse domains. When I'm not immersed in my professional pursuits, you'll find me venturing into the great outdoors, embarking on treks that allow me to embrace the natural beauty of our land. Equally captivating is my passion for discovering the nuanced flavors of wine from every corner of India.

Join me on this journey of exploration, where I blend the worlds of media, psychology, and criminology into a mosaic of perspectives. Through my words, I aspire to share my insights, experiences, and the myriad of stories that have colored my path.

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