HomeWhat's TrendingCan You Transfer PF Balance When Your Current Employer Isn't Under EPF?

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.

Rugmini Dinu