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Provident Fund (PF) and Voluntary Provident Fund (VPF)

Provident Fund (PF) and Voluntary PF (VPF) are two investment avenues that most salaried people invariably encounter. This article explains what PF is, and also talks about Voluntary Contributions to the PF account. Here’s how you can use PF and VPF to create a great base for a great retirement.

If you are salaried, there is no way you would have not heard of Provident Fund (PF). In fact, there is no way you would have not invested in it! Well, it is because PF is a compulsory investment for all salaried people (PF is compulsory if you work for a company having 20 or more employees)

Note: Provident Fund is also referred to as Employees Provident Fund, or EPF.

(Want to know about Public Provident Fund? Please read “Public Provident Fund (PPF) – Plan Your Retirement and Save Tax“)

Since you are forced by the government to invest in PF, let’s understand it better, and see how it can be so useful in building a retirement corpus for you.


What is Provident Fund (PF)?

PF is a long term investment. It is one of the lowest risk investment avenues, as it is backed by the government.

Each month, a certain percentage of your salary (usually, a percentage of your Basic Pay) is invested in it. This percentage varies from company to company, and is usually between 8% and 12%. (12% is the norm).


PF, Income Tax (IT) and the double benefit

Your contribution towards PF is considered as a part of investments under Section 80C of the Income Tax (IT) Act. Thus, this amount gets deducted from your salary, and you do not pay any tax on it!

(Want to know more about Section 80C and investments that make a part of it? Please read “Saving Income Tax – Understanding Section 80C Deductions”)

Moreover, the company you work for contributes an equal amount to your PF account on your behalf.

And that’s the best part – it’s not just you making the investment: the company makes an equal investment for your retirement! Isn’t that great? It’s free money, after all!

(Well not totally free – for those of you working for private companies, the company’s contribution to PF would be part of the cost to company – CTC – salary computation).


Interest Rate for PF

The rate of interest that you earn on your PF investment is fixed by the Central Government every year in March / April. The rate of interest changes every year, but due to the nature of politics in India, it is usually higher than the prevailing market rates.

The current rate of interest on PF (for FY 2010-11) is 9.5% (now you know what I mean when I say it is usually higher than the prevailing market rates!)


How do you get your money back?

PF is a long term investment, and it is meant to give you a sizable lump-sum amount at the time of your retirement. Thus, you get your PF money back at the time of your retirement.

(Note: There are other ways in which you can get your PF money back, like taking a loan from your provident fund account. But it is not prudent to use your retirement savings for anything other than retirement – so I have not talked about those avenues here)

(Please go to the bottom of the page to download forms to transfer or withdraw your PF money)


Income tax benefit – a recap

The amount you have invested, the amount that your company has invested on your behalf and the interest earned on these amounts. Tax-free.

Yes, tax free! There is absolutely no income tax on provident fund money withdrawn at the time of retirement.


Summing Up

I am sure you see the benefits of PF now:

  • Immediate income tax (IT) benefit under Sec 80C
  • Equal contribution by your company
  • Interest rate usually higher than prevailing market rate
  • Totally tax free returns

Can it get better than this?? No – not for people seeking long term, risk free avenues of investment.



Let’s see an illustration to demonstrate the power of provident fund.

Let’s say you are just starting out. Your working life is, say, 35 years. You start with a basic salary of Rs. 10,000. Every year, on an average, you get a 5% increment. Also, you get a promotion every 5 years, and get a pay hike of 20% when you get promoted.

You contribute 12% of your basic salary towards PF (which is matched equally by your company).

Login Required Want to know the figures for your exact situation? Download this spreadsheet that has all the detailed calculations for the PF illustration. You can change the parameters to suit your need, and find out the exact amount that you can expect from your EPF account when you retire.

In this case, over the course of 35 years of your working life, you make a total contribution of Rs. 22.64 Lakhs.

(Remember, I haven’t considered the Sec 80C income tax benefit in these calculations – if your entire amount is eligible for 80C deduction, and you are in the highest tax bracket, you would have saved 30% of your investment every year. This means that your actual investment would only be Rs. 15.85 Lakhs!)

Of course, your company makes an equal contribution of Rs. 22.64 Lakhs.

And this amount grows into – hold your breath – Rs. 1.5 Crores at the time of your retirement! Now, that’s a good amount for your retirement corpus!! This amount can serve as a solid base for your retirement, especially because it is virtually risk free.


Other Options

You should plan on investing more in other avenues to get the actual amount you need for your retirement.

(Want to know how much you would need when you retire? Please read “Want to retire early? Here’s what you need”)

One option is to make voluntary contributions to the same PF account. (This is discussed later in the article).

But if want to invest smartly, you should invest in stocks for retirement. This is because stocks give the best return on your investment in the long term. (Please read “Stocks – The winning bet for the long term” to know more about long term investment in stocks).

So, for a long term goal like retirement, you should definitely invest a good portion of your savings in stocks. To know how to invest small amounts periodically to achieve large long term goals, please read “Goal Based Investing”.


Other things you should know about Employees Provident Fund / EPF / PF

  • The PF balance can be transferred when you change jobs (You can download the relevant form at the end of this article)
  • You can define a nominee for your PF account
  • You get an annual statement of your PF balance

Login Required Want to know the figures for your exact situation? Download this spreadsheet that has all the detailed calculations for the PF illustration. You can change the parameters to suit your need, and find out the exact amount that you can expect from your EPF account when you retire.


Voluntary Contributions to Provident Fund (VPF)

Now, if you are very risk averse and want a safe option like PF, voluntary contributions to PF, or VPF, is the way to go.

It’s simple: You contribute more towards your PF, over and above the 12% mandated by the government.

This additional voluntary contribution enjoys all the benefits of PF, except that the company doesn’t contribute an equal amount.

But still, the interest rate is equal to the rate of interest for PF, and the withdrawal on retirement is tax-free.

Thus, as I said earlier, VPF can be a good option if you are very risk averse and want a safe option like PF.

Please note that the maximum contribution allowed towards VPF is 100% of your basic + dearness allowance (DA).


Download Forms to Transfer or Withdraw PF Money

(You need to be logged-in to download the forms. For free registration that takes less than a minute, please click here. To know the benefits of registration, please click here)

Form No. Purpose Download Link
Form 13 (Revised) To transfer the Provident Fund account from one establishment to another establishment. Login Required
Form 19 To withdraw Provident Fund dues on leaving service / retirement / termination. That is, to claim final settlement of PF. Login Required
Form 20 To claim a member’s Provident Fund accumulation in the event of death of the member. This form is to be used by a nominee / family member. Login Required
Form 31 To avail advances / withdrawals as provided in the scheme. (Note: PF is for long term savings. As far as possible, do not withdraw from it before retirement) Login Required

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  1. Anonymous says:

    Hi Raag,

    Its really good to read your articles. I want you to also write about the investment option in PPF and its benefits.

  2. Anonymous says:

    Thanks, Ketan.

    You can read an article on PPF here: Public Provident Fund (PPF) – Plan Your Retirement and Save Tax.

  3. Anonymous says:

    Hi Raag,

    Nice Article as usual.

    However, I have a doubt regarding the excel which is attached with this article. You have mentioned Year in the first column, but you have taken only one month’s contribution towards the PF.

    But the contribution from the individual and company is for every month, right? So, I think the Accmulated Amount in the end would be drastically increased (if what i thought is correct).

    Also, I heard that from the company’s contribution some percentage goes towards pension. Can you clarify/focus on that too in your coming articles.

    Thanks for the info.

  4. Anonymous says:

    Hi Srinivas,

    Excellent catch!! Thanks a lot for pointing this out.

    You are absolutely right – the individual’s and the company’s contribution happens every month. I have corrected the figures in the article, and have also corrected the spreadsheet.

    Thanks again…

    Provident Fund Contribution and Pension:

    You have raised another interesting point.

    In case of government employees, although 12% is deducted from the salary, only 3.67% actually goes to the PF account.

    The remaining 8.33% goes to the Employees Pension Scheme.

    Therefore, in such cases, the employees would get significantly lesser amount on retirement as compared to what is projected here.

    But since these employees would receive a regular monthly pension on retirement, they can easily afford to have a smaller retirement corpus.

    After all, the aim of the retirement corpus is to produce a steady monthly income – if that is met to some extent by the pension, a smaller amount from PF is quite tolerable.

    And, if the employee feels that the PF amount might not prove to be enough, she / he can always contribute to VPF!

  5. Kaushik Majumdar says:

    Hi Raag,
    A very good blog you are writing here. I am amazed that I discovered it only yoday.
    My query is: I have a job that requires frequent long term postings abroad. During these periods my indian salary stops and so also the flow to my EPF fund stops. If there is no addition to the EPF account, do I earn interest on the amount already in the account?
    Someone told that the interest addition is suspended for those accounts where there is no contribution for 3 months.
    Thanks in advance

  6. Anonymous says:

    Thanks, Kaushik.

    As per my knowledge, the interest addition is not suspended. The amount lying in your PF account would keep earning interest at the rate declared every year.

    To confirm this, you can check your PF statements (issued every year) when you are back in India.

  7. roopakumar.av says:

    hi raag,

    1.can i close my vpf for every fiscal year and get money back….

    2.can i take my vpf fund for my marriage purpose…please clarify…

  8. Anonymous says:

    Hi Roopkumar,

    1. VPF is just li PF, and is meant for long term savings primarily for retirement. Therefore, the account can not be closed every year. The account remains active till your retirement, and you get all your money along with the accumulated interest at that time.

    2. You can withdraw money from the PF / VPF account before retirement. But this has to be for certain specified reasons only. These reasons include:

    - To buy / build a house or to buy land.
    - To repay a housing loan
    - To pay for a wedding
    - To pay for hospitalization of you family member or yourself
    - If the company you are working for shuts down
    - If your employment has been terminated

    So, yes, you can withdraw money from VPF for marriage purpose.

  9. roopakumar.av says:

    hi raag,

    really thanks a lot for ur information…its very usefull…i wish keep in tounch with

    im really happy that i got a personalised mail to my mailbox regarding the querry…


  10. roopakumar.av says:

    hi raag

    is vpf contribution is fully excempted for tax or is there any calculation for the same

    please clarify..


  11. Anonymous says:

    Dear Roopakumar,

    Its my pleasure to be of help to you. Please don’t hesitate in asking any more questions.


    All contribution to VPF is exempt from income tax under section 80C of the Income Tax Act.

    The amount is governed by the cap specified in section 80C (which is currently Rs. 1 Lakh).

    To know all the details about Sec 80C, please read “Saving Income Tax – Understanding Section 80C Deductions“.

  12. Mohit Gupta says:

    Can i discontinue VPF deducation from my salary after a period of 3-4 years after the initiation.
    Is it possible to close it before retirement.

  13. Thanks for the informative article.

    You mentioned that the PF amount is not taxed on withdrawl at the time of retirement. What are the provisions in case the money is withdrawn at the time of resignation?

  14. jessica says:


    Very informative article

    I want small information on VPF. Can you help me with this subsequent question?

    1. We are 20 employees, my question can we go for VPF?
    2. How much can company has to contribute i.e. is there any % for the company also.


  15. Anonymous says:

    Dear Mohit,

    Voluntary Provident Fund, as the name suggests, is completely voluntary.

    Yiou can start contributing to it any time, and can stop your contributions at any time as well.

    You can also change the amount that you contribute to VPF.

    Companies might have some internal rules (for example, say a 1 month notice for any change / discontinuation), but otherwise, there is no restriction.

  16. Anonymous says:

    Hi VJ,

    If you resign, and join another job, you can transfer your PF to the new company. This is not treated as a withdrawal – there would be no tax, and the PF account would continue as usual.

    But if you resign and actually withdraw the accumulated PF amount, the following rules apply:

    If you have maintained the PF account for more than 5 years, there is absolutely no tax on the PF amount withdrawal.

    If you have maintained the PF account for less than 5 years, the amount of withdrawal is included in your income for that year, and is taxed as per the prevailing income tax slabs / brackets.

    (To know the current income tax slabs / brackets, please read “Budget 2008 – Impact of Income Tax Slab / Bracket Changes on You“)

    There is even more pain in this case – the income tax relief that you enjoyed on PF contributions would be rolled back, meaning that you would have to pay the tax that you saved.

    Apart from this, employer’s contribution to your PF fund, and the interest earned by you is also included in your income of the respective years, and you would have to pay income tax on it.

    Basically, what this means is that it is best not to withdraw the PF amount if you have not mmaintained the PF account for more than 5 years.

    In any case, PF is for long term savings, and the funds in your PF account should not be withdrawn. It is best to transfer your accumulated PF money to your new employer when you change jobs.

  17. Anonymous says:

    Hi Jessica,

    I am glad you liked the article!

    1. If your company has 20 employees, it should already be having Provident Fund (PF) for the employees.

    (In fact, in the near future, even companies having as less as 10 employees would need to have PF)

    IN that case, you should definitely be able to go for VPF, which is nothing but extra, voluntary contribution to your PF account.

    2. The company contributes an equal amount (it is called “matching contribution”) for your regular PF contributions.

    But in case of VPF, there is no contribution from the company – VPF is the amount that you want to save “extra”, and so, the company doesn’t have to match this payment.

  18. ANIMESH PRASAD says:

    what is the minimum years of service required to get back the total amount of provident fund (including company’s contribution) at the time of resignation to the company

  19. Anonymous says:

    Dear Animesh,

    There is no minimum years of service required to withdraw your PF balance. You can withdraw your PF balance whenever you resign from your job.

    But the years of service determine the taxability of this withdrawal.

    If you withdraw the PF amount with less than 5 years of service, the amount is taxable. But if your service is for more than 5 years, the withdrawal is tax-free.

    Please note that in calculating the years of service, the years you have served in your previous jobs (where you were contributing to the PF) should also be included.

  20. Dear,

    I am employee in private company and having 4 EPF account at varius city because of job change.

    1. Account Slip Not Dispatched By EPFO: In last 6 years I have not received single account slip of any account and even i asked to my employer several times. Now I do not know what amount my employers deposited. Even I don not know whether EPF A/c are correct as provided by them.

    2. I have applied for 3 tranfers with all formalities, 12 months has gone no successful response from EPFO. Even I have write several times and registered grivences.

    Hence, I am confident When it is so tuff to get account statement as well account transfer. What about withdraw. If I die day after tomorrow, my parent or wife can’t get that money if so tuggest.

    If you have little time suggest me any more positive way.

  21. Anonymous says:

    Dear Sindhu,

    I’m really sorry to hear about your experience. I can understand that you are quite frustrated.

    Unfortunately, it looks like you are doing all the right things!

    Account Statements: Giving you the account statement is the responsibility of your employer. There is no way your employer can refuse to give you that!

    Transfer of accounts: Well, you can probebly use the Public Grievance Portal of the Government of India.

    When logging your complaint, please quote your PF account number at the beginning of the description. Also, for the “Select Ministry/Department/State Govt. to which the grievance pertains” column, please select “Employees Provident Fund Organisation” from the dropdown.

    Again, here’s the Public Grievance Portal of the Government of India.

    All the best… I hope your issue gets resolved soon. Please keep us posted about the developments.

  22. Prasanna rao says:

    Mr Raagva,

    I would like to thank you for the very informative site.
    Its a boon for people like me who are grouping in the dark for right information.

    Additionally, the formats are a blessing too.

    I hope i get more information about medical insurance too…just like i got the one for PF.

    Thanks and keep up the sun shining in your site


  23. Dear Prasanna,

    Thanks a lot for all the praise! I am really happy that I could be of help to you.

    Medical insurance is a great topic to write about – thanks for suggesting it! I would write on it shortly.

    Thanks again…

  24. bala kishore says:

    here are few questions for which i require clarification
    1}can we withdraw VPF? if yes what is the time frame
    2}What is form used to enroll and withdraw VPF?
    3}What are the basic things to be taken care of while filling those forms.

  25. What is the maximum number of employees an organisation can have without having to be covered by E.P.F act.

  26. Dear Bala Kishore,

    Once the investment is ade through VPF, it is treated exactly like investment through PF – there is no difference.

    Therefore, all rules that apply to withdrawal from PF (as described in the article) apply to VPF as well.

    For VPF withdrawal, please use the forms meant for PF.

  27. Dear Ravinder,

    The minimum number of employees for compulsory coverage by EPF used to be 20.

    With effect from July 2008, this has been reduced to 10 employees.

    Thus, the maximum no. of employees that an organization can have without being covered by EPF is 9.

  28. Hi Jagannath,

    I am not 100% sure about this, but the private trusts might be well within their rights to ask employees to transfer / withdraw the PF amount after their resignation.

    Coming to your investment situation: PF money is meant for retirement, so should be invested in safe avenues. At the same time, the higher the return, the better it is.

    Considering this, you might want to check out bank fixed deposits. I know it sounds very unglamorous, but in today’s scenario, I believe banks FDs have the best risk-return equation (apart from stocks, in which you wouldn’t want to invest your retirement money at the age of 48-49, I believe).

    The rates offered are fabulous – they are in the range of 10.5%-11%. And I believe that the rates are only going to go down from here – I wouldn’t be surprised if the rates fall by as much as 3%.

    So, it is a perfect time to lock-into good returns.

    (Both NABARD bonds and Gilt funds would give you a very low return).

    Tax benefit of consulting vs being an employee: Well, this is a big topic. I would write an article on it soon. Thanks for the article idea!

  29. Hi Raagva,

    I quit my job after 25 years of service. I now consult freelance.

    still have a decade to reach official retirement age of 58.

    I hear that it is mandatory to withdraw PF after 60 days of resignation. Is this true? Would appreciate your inputs.

    Best regards,


  30. Hi Kaizad,

    1. Withdrawal from PPF would have no income tax implications – it would be tax free.

    2. A small correction – you claim deduction u/s 80C for the amount deposited in PPF. That is, the amount deposited in PPF gets deducted from your taxable salary. (You had to claim a rebate till some years back).

    (Please read “Saving Income Tax – Understanding Section 80C Deductions” to know the details about deductions under Section 80C)

    When you withdraw from PPF, you are not withdrawing the amount that you deposited this year (20K in your case). (The withdrawal rules take care of this!)

    Therefore, you continue to enjoy the tax benefit for the amount that you deposited this year (20K in your case).

  31. Hi Chandra,

    I am glad that I could be of help! And thanks for spreading the word!

  32. Hello Raag

    I deposit 20 k as PPF subscription a year say in the first eight months of the financial year and claim rebate as per the law…..Now say in the 9th month i am in need of a money for my kids education / health and i withdraw say 40 k from my a/c that time as per the withdrawl balance at the end of a particular year……Now i would like to know if there is any tax implication as far the withdrawl amt is concerned and ALSO what happens to the rebate which i have claimed against 20 k subscription….What will be the tax implication ?

  33. Hi Raagvamd,

    Thank you for being so fast. I appreciate.



    PS: This site of yours is really helpful. Will convey it to others as well.

  34. Dear Raagvamd,

    In one of your reply to Re: Query regarding VPF, you said

    “Yiou can start contributing to it any time, and can stop your contributions at any time as well.

    You can also change the amount that you contribute to VPF.”

    I approached my Payroll for the discontinuation of my contribution to Voluntary Provident Fund. The department replied back by saying it can only be done at the close of the Financial year.

    Please let me know if there is any section or article where its written that so that I can go back to the payroll department and prove it to them and ask them again to stop my contributions to VPF.

    I will really appreciate your help in this regard.



  35. Thanks Raagavmd, for the clarity and for the Wishes: Yes it was difficult to make such a decision.

    Doe this apply to PF that are maintained not by RPF but by separate Pvt trusts such as in Pvt Ltd. cos.? I ask because the Pvt trusts pressurize resigned employees to either transfer or withdraw their pf since they are not obliged to maintain accounts for resigned employees! In order to avoid such pressures I removed my PF and now wondering what to do with it. I have been advised to put into safe bonds like Nabard and Gilt funds. I guess this should be OK?

    To your other question, no I donot know what are the tax benefits available to free lance consultants. Where can find out about this?

    Best Regards,


  36. Hi Chandra,

    I do not know of any legal restriction on starting or ending VPF contributions. Unfortunately, I have not been able to find any article that states this – but for that matter, I couldn’t find any article that says it has to be done only at the end of the financial year!

    But having said that, I do know that most companies do have this rule wherein they allow changes to VPF contribution only once a year – usually at the beginning of the financial year.

    This might be for operational ease – it would be easier for them to maintain the records that way.

  37. Hi Jagannath,

    It must be a refreshing change to be a freelance consultant after being an employee for 25 years! I am sure the decision would not have been easy – Congratulations!

    Coming to your query:

    It is not mandatory to withdraw the PF amount 2 months after resignation.

    The limitation is the other way round – if you want to withdraw the money from your PF account after resigning from your job, you have to wait for at least two months.

    This is because the PF amount can be withdrawn only if you are not in a job for 2 months.

    Note: I hope you are aware of the many income tax advantages that you now have as a freelance consultant as compared to being an employee.

  38. Kaizad Wadia says:

    Thanks Raagv for your reply…..But can you tell me about the pension part….is pension withdrawl also taxable in my case or only PF withdrawl is taxable ? Also can you pl reply on the notice pay query raised in my earlier comment. Sorry to bother you.

  39. Hi Kaizad,

    Sorry about that :-)

    The pension withdrawal would be taxable.

    Also, you would not be able to claim any tax benefit on the notice pay you gave your company.

  40. Hi Kaizad,

    The 5 year criteria for tax exemption of the withdrawn PF amount is “maintenance of the PF account”. This means you need a continuous service of 5 years (with one or more organizations).

    When you shifted your job, you would have shifted your PF account. So, in effect, you “maintained” the PF account. So, your tenure in both the companies would be counted.

    But only the time till which you actually served the company would be counted.

    Thus, it would be from Oct 2002 to Aug 2007. This is less than 5 years, and therefore, the amount withdrawn would be taxable.

    Note: Have you joined another company after resigning in Aug 2007? Have you transferred your PF account to that company? If that is the case, your tenure in this new company would also be counted, and the total might exceed 5 years – making your PF withdrawal tax-free!

  41. Dear,
    I joined a co in Oct 2002 and in July 2003 i was given a transfer to a group company by giving a letter stating that the terms and conditions of new employment will be the same and that i will be on rolls of that group co from July 2003….I resigned from the service in Aug 2007 from this group co….But i filled up the PF and Pension withdrawl form in APRIL 2008 and got the money say in August 2008…..Will this amount of PF and Pension be taxable….How will the 5 year criteria for tax exemption be determined in my case……Secondly the notice pay given by me in lieu of notice period not served, can i claim deduction for that amount in my return….Pl guide….Thanks

  42. Dear Naveen,

    In my opinion, the interest earned on the PF balance is tax-free even after you are not in service. Therefore, the company should not be deducting any tax.

  43. Dear Raju,

    I can understand your frustration. In this situation, it might be a good idea to approach the PF office to find out the status.

    If the response is not received, you can approach the Right To Information (RTI) officers of the PF organization. This is the link to the list.

  44. Anonymous says:

    Hi Raj,

    a) The PF deduction is split into 2 parts – PF and Pension. Form 19 is for PF withdrawal, and Form 10C is for the withdrawal of the pension fund.

    b) I would write a detailed article about SSN. Thanks for suggesting a topic!

    Q2 – No, the PF amount would not be taxed if you transfer it to your new employer.

    Q3 – The entire withdrawal amount would be clubbed with your income of that year, and would be taxed according to the prevailing tax slabs.

    Q4 – Yes, it is true. As mentioned earlier, the PF deduction is split into 2 parts – PF and Pension. I would try to write a detailed article about this as well. Thanks again!

  45. Hello Raag,

    Thanks for your reply of 26/11/08 to my query.

    It means that from seventh year onwards if i withdraw every year from my PPF a/c as per the amount specified as per law and then re-deposit the same back to my PPF a/c in the same FY, still i can claim deduction for that deposit u/s 80 C as well as the withdrawl amt is tax free ? Am i right ?

    Also for withdrawl from PPF is any specific reason to be mentioned in the application like marriage, hospitalisation, education, etc OR the law specifies that it can be used for any purpose including reinvestment of that amt in the same PPF a/c in the same FY ?

  46. hello raag

    i am staying at my in-laws house who are very old and pay them certain amount every month say 4000 (48 k per annum) as they survive on interest income. Can i claim HRA deduction in my returns ? and what is the process and the rules reg the same.

    Can you please guide me on above so that if possible i can save some amount as till date i am not aware abt how the above works.

  47. Please send me PF withdrawl form on leaving service

  48. Hi Abhishek,

    If you withdraw the amount after transferring it to the PF account in the new company, it would be tax-free when you withdraw it after completing 5 years of total service in June 2009.

  49. Hi Raag,

    Thanks for your answers.

    As per my previous query, Regarding point no.1 – I wish to withdraw my PF. I have filled all 3 forms. My questions are as follows:

    a) What is Form 19 and Form 10c
    b) Could you please enlighten me about SSN – requirements, procedure, time frame, your advice and comments, all about SSN

    Regarding point No. 2 – A silly question, Will it be taxed even if I transfer my PF

    Q3 – If I withdraw the PF, how much will it be taxed and will I be taxed on the interest also?

    Q4 – I’ve heard that there are 2 components to PF…..i.e. Pension and PF… it true…..if yes, could you please provide info

    Thanks a million

  50. Hi Raag,

    First of all, wanna tell you that you are doing a great job.

    Have some queries regarding withdrawal of PF.

    Q1. When I left my company, I was given three forms:
    Form 19, Form 10c, SSN form. Do I need to fill and submit all the forms.

    Q2. I started working in Aug 2003 and left organisation in Jun 2008. So, the total years of service is just under 5 years. I have not yet submitted my PF forms. Am I eligible for tax free PF as it is more than 5 years now.

    Q3. After quitting the job, Is there a time limit within which an employee should apply for PF withdrawal

  51. I had resigned from the services of the co. after 28 yrs. of service ( PF Trust managed the PF scheme). I had resigned about 18 months ago. I now plan to withdraw the balance in my PF a/c. Is the co. liable/correct to deduct tax on the interest earned on the accumulated amount subsequent to my release from the co. i.e. for approx. 18 months?

  52. Hi Raagva,

    I changed my first company 1.5 years ago and requested for a PF account transfer in my present company long back. when i requested for confirmation from the present company, i got a reply stating

    “Please be informed that as per our records, your transfer-in request has been processed and filed with RPFC on 13-7-2007. A set of Form-13 has also been sent to your previous employer.

    But as per your previous employer instructions the Forms has been resent to RPFC-Chennai, Tambaram-45 on 24-4-2008.”

    When i contact my previous company, they ask me to inquire the PF office. what should i do?

  53. Dear Raagva

    Thank you very much for the excellent guidance that you give on this site. I had posted a query a little while ago but then I realised that I hadnt registered and thus not qualified to do so. I have since registered and am posting it once again.I had resigned from the services of the co. after 28 yrs. of service ( PF Trust managed the PF scheme). I had resigned about 18 months ago. I now plan to withdraw the balance in my PF a/c. Is the co. liable/correct to deduct tax on the interest earned on the accumulated amount subsequent to my release from the co. i.e. for the last 18 months?

  54. Dear Raag,
    I had resigned in May 2008 after 4 years of service in a PSU which has its own PF trust. I have still not withdrawn/transferred my PF account to my new employed whom I joined in June 2008.
    If I withdraw the PF amount after completion of 5 years in June 2009, will it be taxable?

  55. Hi Kaizad,

    Yes, technically, you can withdraw an amount and make a deposit to claim income tax benefit.

    But as you have suspected, the PF withdrawal form does ask for a reason. The usual reasons are purchase of house / land or marriage of son or daughter.

    I would encourage all my readers to stay away from such creative techniques to save tax.

  56. Hi Kaizad,

    You can definitely claim the amount for HRA exemption. All you would need are rent receipts, and a rental agreemnt.

    But please keep in mind that this rent recieved by your in-laws would be added to their income and would be taxable in their hands.

    For a detailed explanation on HRA, please read “Income Tax (IT) treatment of House Rent Allowance (HRA)“.

  57. Hi Raj,

    Thanks for the compliments!

    1. You need to fill the forms only if you want to withdraw the PF amount. In case you are planning to take up another employment, you can transfer this amount from your previous employer to your new employer. I would recommend this, and PF is meant for your retirement.

    2. No, it would still be taxable, as the years of continuous service is still less than 5 years.

    3. There is no time limit.

  58. Please respond urgently to the above queries.

  59. Anonymous says:

    Hi Juanita,

    PF is ideally meant to provide for your retirement – it is for long term savings.

    Also, it offeres a good rate of return, and the returns are totally tax free. Thus, it is one of the most attractive investment avenues among the risk-free options.

    Therefore, my advise would be to hold on to your investment instead of withdrawing it.

  60. Rishi Gupta says:

    Hi Raag,

    I read your article along with the Q&A, It is very usefull.

    I have a doubt which one should i opt for risk free investment. under PPF rate of int is 8% while in RPF it is 8.5%. I want long term investment say for 15yrs for education of my kids.

    Please guide me.

  61. Dear Raag,

    I was employed with a private concern in India for 5 yrs and 4 months. I left the job in 2006 and have been working abroad since.

    I was wondering if I should withdraw my PF or should I leave it as is.


  62. Anonymous says:

    Hi Raag,

    Yes, I completely agree with your point to invest in equity. My current exposure in equity and equity related MF is 100%. In this volatile market, my portfolio value reduced to 50%.

    So I want to invest in some secure way for my and my families futures.

  63. Anonymous says:

    Thanks, Rishi.

    There is a difference between the two investment avenues – PPF is an investment with 15 years lock-in, whereas in PF, you have to keep invested till you retire.

    So, you need to decide on the investment avenue depending on the time horizon you are looking at.

    Since you want to invest for 15 years, I believe PPF makes more sense out of these two.

    However, since you want to invest for a very long term of 15 years, you might consider equity at least for a portion (say 20-25%) of your corpus. You can invest in a good diversified mutual fund that has a good history of returns in the last 5 years.

    For more, please read “Public Provident Fund (PPF) – Plan Your Retirement and Save Tax“, “Stocks – The winning bet for the long term” and “Equity Investment is Risk Free – Here’s the Proof :: RaagVamdatt“.

  64. Hello Arun Kumar,

    The PF amount deducted from your salary every month (12% of your basic) is deposit in your PF account.

    A portion of your employer’s contribution (8.33%) is paid to the Employees Pension Scheme, while the rest goes to you PF account.

    When you get the statement of your PF account, you see the amount in your PF account – it doesn’t include the amount paid to the Employees Pension Scheme.

    Thus, when you retire, you can withdraw this full amount.

    You would need to submit Form 19 – which is meant for withdrawing Provident Fund dues on leaving service / retirement / termination. That is, to claim final settlement of PF.

    The downloadable form is there in the article. I am sure your organization too would help you in this process.

  65. John Philip says:

    Thank you so much, sir, for your comment.

    I really appreciate the work you are doing here, and I thank you for replying so soon.

    The problem here, is that my employer here now is not providing PF, and no one here, is ready to take the employer to the court.

    In that case, I really would like to know, since my tenure with the previous company was only for 4 yrs, will I be able to get the money, which my previous company has put also, or will I be able to withdraw only my share?

    I would also like to know how much tax we are looking at, for withdrawing, is there any specific rate?

    Thanks so much, in advance.

  66. Hi John,

    You can withdraw your PF – but since you did not complete 5 years of service, the withdrawal would be fully taxable.

    You would need to submit Form 31 for the withdrawal (the download link is there in the article above).

    Having said that, I would strongly recommend not withdrawing the amount. PF money is your best bet for a post-retirement corpus. Also, PF offeres tax benefits, and the interest accrued in tax free.

    Not to forget that the withdrawal in your case would be taxable.

    Instead, you can transfer your old PF account to your new employer and continue investing in it.

  67. John Philip says:

    I joined an organisation in Oct 3, 2004, and resigned on Oct 4, 2008.

    Can I withdraw my PF now?

    How do I go about it, and what should I intimate to my previous employer?

    What are the documents that I need to submit to my employer for my withdrawal?


  68. Padma Kumar.S says:

    We are running STP Texsa Officers provident Fund and what is the date for taking exemption from RPFC.

  69. Hi raag,

    Very good informative article about PF and VPF. How can we get the annual statement for PF balance. What we have to do for this.

  70. Hello Padma Kumar,

    I am not sure if I understand the question right. In fact, to be frank, I am not very knowledgeable when it comes to PF trusts seeking exemption.

    However, you can visit the following webpage – it has some good guidelines available:

    Hope it helps.

  71. Hi,


    The EPFO issues the annual statements for all the PF accounts, and hands them over to the employers. Employers in turn give the account statements to the respective employees.

    So, please check with your employer to get the PF account statement.

  72. Hi Revanth,

    You always have the option of not closing the old PF account.

    I do not believe you lose your money to the treasury if you do not operate your PF account.

    When you get a new job, you can transfer this old account to your new employer.

    And by the way, you can not convert PF into VPF.

  73. Anonymous says:

    Hi John,

    Here are the rules about withdrawal and taxation:

    If you have maintained the PF account for more than 5 years, there is absolutely no tax on the PF amount withdrawal.

    If you have maintained the PF account for less than 5 years, the amount of withdrawal is included in your income for the year of withdrawal, and is taxed as per the prevailing income tax slabs / brackets.

    Also, the income tax relief that you enjoyed on PF contributions would be rolled back, meaning that you would have to pay the tax that you saved.

    Apart from this, employer’s contribution to your PF fund, and the interest earned by you is also included in your income of the respective years, and you would have to pay income tax on it.

    Your situation, though, seems unique. And to be frank, I am not sure how withdrawal in your case would be treated. It might make sense to take the opinion of a practising chartered accountant (CA) (as a lot of money might be at stake due to the tax treatment of PF withdrawal).

    However, I am curious about your company – does it have 10 or more employees? Because companies with more than 10 employees are required by law to have PF.

  74. Hi,

    My case is very similar to john phillips… i worked for an organization for 3.5 years and had PF account over there. My new organization is not having PF- means they are giving for persons whose salary is low. Now what to do… i donot want to withdraw the PF prematurely.. ie before 5 years of service. If i dont not withdraw now my account will be inactive as my new employer doesnot have PF for us. It might take 1 year more for me to get to another job atleast where i hope we will defenitely have PF. CAn i convert my PF account into VPF. or can an account be inactive for 2 years and get activated later. One of my college suggested that if we donot with draw the PF from an inactive account within 6 months it will be lost to the treasury and we will not get that back. I am really in a big state of dilemma.. Your answer will be a booster for me… Hope to hear from you as soon as possible….Thanks in advance

  75. Arun Kumar says:

    I want to withdraw the entire amount after retirement from my job in the year 2013 as I dont want to avail the pension facility because the pension amount for a private company worker is not even sufficient to even meet the cost of Tea and snacks. Whether it is permissible ?

    Arun Kumar, Patna

  76. Hi Pawan,

    The maximum PF that you can contribute is 100% of your basic + dearness allowance (DA).

    Thus, in your case, you can pay upto Rs. 3,500 per month (assuming there is no DA).

    Please note that any additional contribution (over the mandatory 12%) may not be matched by your employer.

  77. sir,
    I want to know that how much % of additional pf can be contributed other than 12%.

    my basic is 3500/- at present I am contributing 12%(as per rules)+24%(additional)=36% of my Basic.

  78. One of my Tax consultant told that it is difficult to withdraw VPF amount from company, So we should go for PPF instead of VPF. Please give your valuable comments

  79. Poornima Selvarajan says:

    Hi Raag,

    Thank you so much for your valuable information. This would serve lot of purposes.

    S. Poornima

  80. Siva Sankar says:

    Hi Sir,

    Per your response to Mr.Chandra that you can discontinue the contribution to VPF during the start of the financial year. I ask the same question if I can get any act or section that would mention the above provision. If not could you please guide if we can post this question with any of the RPFC authorities. As my case is similar to that of Mr.Chandra’s where my payroll says that it is not possible to discontinue the contribution towards VPF.

    Need your guidance in this.


  81. Anonymous says:

    Hi Siva Sankar,

    As I mentioned to Mr. Chandra, I do not know of any legal restriction on starting or ending VPF contributions. But I do know that most companies do have this rule wherein they allow changes to VPF contribution only once a year – usually at the beginning of the financial year – may be for operational ease.

    In case you want to lodge a complaint, you can probably use the Public Grievance Portal of the Government of India

    In your case, however, it shouldn’t be a big issue now that we are approaching the beginning of the financial year (1st April).

  82. Anonymous says:

    Hi Khaleesha,

    If you change your job, the safest option is to transfer your PF account from your old employer to your new employer.

  83. Khaleesha says:

    I want to withdraw the PF amount after my retirement, But I have moved to othercompany, Can I keep the amount In the earlier PF account till my retirement. Can I get interest for that amount.
    keeping for such a long time (nearly-23yrs) with no amount deposites is advisable?

  84. Anonymous says:

    Hi Atif,

    Your tax consultant is right – there are restrictions on withdrawing the amount deposited in VPF just like the restrictions for withdrawing PF amount.

    Compared to this, withdrawals from PPF are relatively easy.

    (Please read “Public Provident Fund (PPF) – Plan Your Retirement and Save Tax” for more)

    Does it mean you shouldn’t invest in VPF? No!

    Your investment in VPF is for the long term – it is to build your retirement corpus. It means that this money should not be used for anything else, as it would jeopardise your retirement kitty.

    So, I would say that the “difficulty” in withdrawing from PF and VPF is a blessing in disguise – it would prevent you from using that money for anything else!

  85. Anonymous says:

    Hi Arvind,

    Thanks a lot for the liberal praise…. It is really motivating!

    I don’t think there is any way to revive the PF account. So, we would need to look at other avenues!

    Unfortunately, there aren’t any avenues that give tax-free returns that match the PF returns… The closest are the RBI bonds, but the returns are lower.

    Have you considered the “new pension system (NPS)” which is to be launched shortly?

    The returns are not guaranteed, and there are some income tax issues that need to be sorted out, but it can be a good option with a lot of flexibility.

    Please check out “Highlights of the New Pension System / Scheme (NPS) for non government employees” for comprehensive details on it.

    Another option is to gradually deposit the amount in PPF – it also gives a great tax free return. But you can deposit only Rs. 70,000 per year, so it is feasible only if your PF corpus is not large. (You can deposit money in your family members’ accounts, though).

    However, if you don’t already have a PPF account, you wouldn’t be able to open one as you are an NRI.

    Please read “Public Provident Fund (PPF) – Plan Your Retirement and Save Tax” for more on PPF.

  86. Anonymous says:

    Hi Namita,

    1. You can if your employer / PF trust allows it. If the PF account is with EPFO, in all likelyhood, it would be allowed. But if it is with some trust of the company, it might not be allowed.

    2. No, you can’t do that when you are not in service.

    3. Contributions to Pension / PF are part of the package and terms of employment.

    If your employment had any time-based qualifiers for pension (for example, 15 years of service needed for pension), it is a part of the terms, and the employer need to pay you anything if you did not satisfy the condition.

  87. Dear Rag,

    Wonder if you could help me too.

    I worked for Central Govt job for 13 years and I was recently terminated due to long period of leave.

    There was no PF contribution by employer because of the provision of the Pension Scheme. I kept on contributing by way of VPF. I have not withdrawn the money yet. Also I am not employed any more and am abroad with my husband.

    I have 3 questions:

    1. Can I retain the PF account endlessly without withdrawing the money?

    2. Can I continue to contribute the fund of my own to PF/ VPF?

    3.As the mployers did not contribute to the Providunt Fund in liew of the Pension- and I am not elegible for pension as well- don’t they need to pay any amount to me or to my PF?



  88. Dear Raag,

    I am surprised at the effort you are taking here. That’s more than a full time job. Sincere thanks for the useful service.

    Well, my case is this way. I worked for a PSU for 16 years, resigned and the PF money which was in that PSU PF Trust has been given back to me. I am abroad since then. Is there a way I can revive the PF as I see in it a a great potential for retirement.

    Also, I have recently received a letter from my previous employers with Form 10-D (EPS) to get the pension benefit. Can I start putting more money in the PF account?

    Well, my case is complex but I know at least a hundred people in UAE, who are facing the same situation. Your answer will help us all.



  89. Poornima Selvarajan says:

    Hi Raag,

    Thank you so much for your valuable reply.

    I have one more query.

    What are the documents to be submitted for pf withdrawal in case of construction of a house along with form 32?

    What will be the eligible amount?

    S. Poornima

  90. Poornima Selvarajan says:

    Hi Raag,
    Your service is excellent. Apt & prompt replies to queries.

    I have 4 doubts…

    1. One of my friend is in urgent need of money for his brother’s marriage. Can he withdraw from PF? He has contributed for around 5 1/2 yrs of continued service. If so, what is the procedure and how many days will it take to get the amount and the quantum of amt?
    2. I have given PF transfer form from my earlier company to current company long back. But, I have not got the status. How to verify whether my amount has been transferred or not?
    3. There is a concept called ‘advances from PF a/c. What does it mean? For what it is used? How to repay the amount?
    4. What is partial withdrawal with respect to PF? under what circumstances, it is used?

    Please respond and sorry for taking your time.

    S. Poornima

  91. Anonymous says:

    I worked in an IT company for 2 years. My PF amount(including EPS) has been settled but the contribution towards VPF has not been settled so far. They say, it has to come from central government and they have done their part. I dont remember filling a separate form for the withrawal for the VPF. Please guide me. Pardon me being a naive.


  92. Anonymous says:

    Hi Ashish,

    PF anf VPF are confusing for many! You can judge that by the number of comments in this article!!

    PF and VPF are treated exactly in the same way – so, the papers you filled up for PF would apply to VPF as well.

  93. Anonymous says:

    Hi Vinay,


    Yes, you can get your PF number from the finance / HE department of your previous company.

    However, I would urge you not to close that account for two reasons:

    - There are many negative income tax implications
    - PF money is meant for your retirement, so shouldn’t be used now

    Instead, you can transfer the amount in your old PF account to your new account.

    Once you get your old PF number, your need to fill up a form that you would get from your new company. Your new company would take care of everything after that.

    There is no online tracking, but this process should be completed in a couple of months.

  94. Anonymous says:

    Hi Raag,

    Firstly a pat for the commendable job :) . Now coming to my query. I was working with an IT company and then when I shifted to another company at another city. While leaving my fisrt company I could not contain the PF closure formalities. I then opened a new pf account in my second company. I now want to close my PF in fisrt company.

    1) I do not have the PF account number from my first company. (I was fresher back then and was not aware of PF account number). The employer should provide me with this on my request right??

    2) The pf person says I have to write letters asking why I am closing it so late etc. is this required?

    3) very important question. Is there any way to track our PF status. any online link etc?

    4) what is the time line for receiving our PF money?

    I would be grateful to get my queries answered

    thanks again

  95. Anonymous says:

    Hi Poornima,

    Glad I could help.

    Along with form 31, you would need to submit a declaration that the house being constructed is free from any encumberances, and that the house in your (or your spouse’s) name.

    You can withdraw an amount equal to 36 months salary (Basic+DA).

  96. Hi RaagVamdatt ,

    Please could help me to understand on what basis is the VPF calculation is done for example is it on your entire salary or only on the basic component & please explain steps to calculate the VPF.

  97. Anonymous says:

    Hi Poornima,

    Thanks a lot! I am glad I am being useful!

    1. No, this would not be possible. Withdrawal from PF while in service is possible only for certain pre-specified reasons, and marriage of a sibling is not one of them.

    (Withdrawal is allowed for the marriage of children, though)

    2. Yo u would get an annual statement of your PF account. Through that, you can know if the PF amount has been trabsferred from the old account or not.

    3 & 4. Advance from PF is same as partial withdrawal from PF while still in a job.

    It is allowed for specific purposes, like marriage of children, construction of a house, etc.

    Also, different lock-ins are applicable – you need to have held your account for a certain period of time before you can withdraw, and this time depends on the reason for the withdrawal.

  98. Anonymous says:

    Hi Sukhi,

    VPF is a “voluntary” contribution to PF, and therefore, I am ot sure why you are concerned about its calculation – it is not mandatory.

    VPF contribution needs to be expressed as a percentage of basic + DA (if any).

  99. Anonymous says:

    Hi Tamilarasi,

    Since your PF account started only in this new company, the tenure in the old company would not be counted.

    The 5 years would start from the day you joined this company.

    Thus, your withdrawal now would be taxable. If you want tax free withdrawal, you would need to wait till you finish 5 years of employment here.

    However, as I have always pointed out, please try to avoid withdrawing from your PF, as it is meant for your retirement corpus.

  100. TAMILARASI says:

    Hi All,

    I understand that if we withdraw the PF before 5 years of continued service to get the amount as tax-free.

    I have 5 years continual service started from Jun’2004.

    But my previeous employer doesn’t have PF option since 8 employees were there.

    I joined in another organization from Jun’2005 and still I am associated with the company. From this company only My PF contribution starts.

    By Jun’2009 I am going to complete 4 years here.

    If I withdraw the PF money , is it tax-free or is it taxable?

    What I need to do to get the money as tax-free

  101. TAMILARASI says:

    Thanks for the clarification

  102. Anonymous says:

    Dear Raag,

    I want to transfer my PF amount to Present PF account

    1) I worked for 3 companies like 2 years in 1 company & 1.5 years in 1 company & now I am working for the 3rd company, everywhere PF was deducted but when I join to new company,I did n’t transfer my PF amount. So 3 PF Account is created.
    2) Now I want to transfer all my previoues PF amount to new PF account.
    3) Present employer is saying that it takes for 6-7 months for transfer is it right or not.

    Is it right or is there any facility through PF can I transfer all my previous PF amount to present PF account.

    Please guide me what needs to be done.


  103. Sir,
    recently i have withdrwan pf amt (pertaing to previous company)….but have been reading thru out your article not to withdraw the same..

    What do you advise me …..for the money which i have withdrawn.


  104. Gaurav Arora says:

    I just want to know, In my CTC there is only contribution of PF that is Employee PF, Is this amount is going to be doubled.

    Pls inform..

    Is it compulsary for Employer to contribute towards the PF of an employe.

  105. Anonymous says:

    Hi Sanjay,

    Well, you can’t deposit the money back now that you have withdrawn it. In the future, you can transfer your PF money when you change jobs.

  106. Anonymous says:

    Hi Gaurav,

    It is compulsary for an employer to contribute towards the PF of an employe if there are 10 or more employees in the company.

    I do not think that employee’s contribution to PF would be mentioned separately in your CTC, as it is calculated based on your basic.

    I think whats mentioned in your CTC is employer’s contribution to PF. It might just have been mis-spelt. Please check with your company.

  107. Anonymous says:

    Hi Chidananda,

    Your company is correct.

    The entire process of transferring PF from old company to the new company is done through the new company, and there is no other way of doing it.

  108. I WANT covering letter while submitting pf withdrawal forms to my previous company

  109. Anonymous says:

    Hi Satya,

    I am not sure if I understand your query correctly. Can you please rephrase?

  110. Abhishek Makkar says:


    My case is somewhat different.

    I have been working with a company for last 3 years and now I have resigned but the problem is the new company I am joining doesn’t have a concept of PF due to its small size. So my queries are

    1. If i decide not to withdraw the amount from my PF account and from now on there is no transaction (credit) happening in that account. What are the ramifications?

    2. Can i on my own put something in my PF account after joining the new firm?

    3. What is the best route suggested by you for me?

    thanks in advance.


  111. Jariwala says:

    If I work for less than 5 years and than do business what happens to EPF ? Specifically I have the foll. questions:

    1) Can I keep my EPF account open but no contribution until it reaches 5 years ?
    2) If answer to 1 is yes,than will the withdrawal after that be taxable ?

  112. Anonymous says:

    Hi Abhishek,

    1. If you have the PF account in a government sponsored PF trust, you can do this. But if your PF account is in the company’s rpivate PF trust, the company may not allow you to continue holding the account.

    2. No. It has to be from the company.

    3. If possible, continue the PF account. When you join another company that does have PF, transfer your PF balance there.

  113. Divakar Hegde says:

    I found your site very informative and put my hats off to you for anwering each query.
    My previous employer who is a Government PSU and having a private PF Trust has unilaterally deposited my entire PF amount to my SB account with no intimation to me. I have not submitted any form 19 for withdrawal nor requested them for withdrawal. Neither there has been any pressure from them for withdrawal (Not even an intimation)
    I do not want this amount in my Hands since it is a retirement corpus.
    Kindly advise what steps to be taken for enabling them to reverse the same.
    I am available on 09820688174 for any clarifications required.
    Best regards
    Divakar Hegde

  114. Anonymous says:

    Hi Jariwala,

    1. Yes, if the PF trust allows that. Usually, private PF trusts would not allow this.

    2. It would still be taxable. The PF account needs to be “maintained” for at least 5 years for the withdrawal to be tax free. This means that there needs to be deposits in the account.

  115. Anonymous says:

    Hello Divakar,

    Thanks a lot – I try to help as much as I can…

    This is really unfortunate. Private PF trusts usually do not encourage people to keep money with them after resignation. But depositing the money without any intimation and without giving you an opportunity to transfer it to your new employer’s PF is quite unfair.

    However, I do not see much possibility of reversing this transaction, as the only deposits in PF accounts are the ones from your salary. However, you can talk to your previous employer’s finance department and find out.

    Do let us know (through the comments here) how this advances – I am sure many readers would be interested in knowing this.

  116. Anonymous says:

    Hi Dahlia,

    There is no connection between Form 16 and PF withdrawal – so please don’t panic about that!

    You should be able to keep the money in the PF account, provided your company has not asked you to withdraw the money.

    Yes, when you withdraw the amount, the amount would be fully taxed as per the income tax slabs in which you fall.

  117. Dahlia George says:


    I am in a bit of a trouble here.I was working for a private company from 2004-2007.I lost all my Form 16 [Shucks!!!] and I want to withdraw the PF.

    1.What happens if I just leave the money in the PF account.Can I withdraw it after a couple of years?
    I heard that I would be taxed at a peak rate of 30% upon withdrawal.
    Can I request copies of Form 16 for the past years from my company.Are they obliged to refurbish this.If not,what are my options!!

    Help!! – dahlia

  118. Dhaval Shah says:

    Good to see some one helping for no reasons and no personal interest. Difficult to find such people in today’s world. I have one query please if you can address the same.

    I have been working for a MNC company for 4 years where I had a PF account maintained. I left after 4 years and joined a new company where unfortunately I did not opt for PF account. The gap is approx of 1 Year. Now again at the start of every year I can apply for PF account in company. My question is if I now initiate the transfer of my previous PF account in current company and start maintaining it will the count of 5 years withdrawal tax exemption start from 0 or It will be appended to 4 years which I have already maintained.


  119. Keshav K Gupta says:

    Thanks for clearing so many doubts abt PF. I have a query regd EPS transfer. My PF amount is transferred to my new PF account, but that amount includes only mine and employers contribution towards PF, it doesn’t contains EPS amount deducted. I worked for previous company for around 1.8 years. I filled Form 13 Revised to get my PF transfer.
    Please let me know what is the process? Does this amount automatically accumulate or it is also notified?

  120. Anonymous says:

    Hi Keshav,

    Your PF account would only have the PF portion of the deductions. The portion that goes towards EPS would not be deposited in the your PF account.

    Therefore, when you transfer the PF amount from one employer to another, the amount that gets transferred is your PF contribution, your employer’s PF contribution, and the accumulated interest.

  121. Anonymous says:

    Hi Dhaval,

    Thanks for the kind words… I feel happy that I am able to help.

    I believe your new contributions would append time to the already elapsed 4 years. However, I would suggest that you double check with your accounts / finance department as well.

  122. Keshav K Gupta says:

    Hello Sir,
    Thanks for the info in this regard. But one thing is not clear about EPS, would it accumulate automatically at RPFC?
    Or i will not get this EPS amount ever?
    When i withdraw PF i get two cheque one is PF accumulation and other is EPS accumulations.
    In case of transfer, where is this amount lost?
    Or is there different form i have to fill to get EPS transfer?
    Thanks a lot once again for ur help

  123. Anonymous says:

    Hi Keshav,

    I believe you need to get a “Scheme Cerificate” from your employer for the EPS balance, and submit it to the Regional Provident Fund Commissioner (RPFC) to get a credit.

  124. Sir, please let me know whether an employee work in two companies parallel/ simultaneously and get EPF from 2 employers ?

  125. Hi Chandra,

    As such, there is no limit on the number of times the VPF contribution can be changed.

    However, most companies put an internal restriction on this based on their policies – this is usually limited to once a year (at the beginning of the financial year).

    However, each company is different. So, please try to find this out from your finance / accounts department.

  126. Hi Ayesha,

    As I mentioned above, the process is the same as PF withdrawal.

    I would write a separate article soon, which would contain all the details.

  127. Hi Harish,

    The procedure for withdrawal of VPF money is exactly the same as withdrawal of PF – which means that the withdrawals are limited, and are allowed only for specific reasons.

    I would write a separate article detailing this – thanks for a great article idea!

  128. Chandra BLR says:

    Dear Sir,
    I want to know how many times I can increase and decrease the VPF contribution in a financial year.

    I could not find this information over the net and it is needed very urgently. Because last year I increased VPF twice and this year I decreased it once, Now again if I try to increase it payroll tool is not allowing.

    With Warm regards.
    Chandra BLR

  129. hello. i must say this is about the most informative webpage on PF related issues i’ve come across yet.

    My issue is thus:
    i’ve been employed for 8 yrs now and presently employed at a large mnc. I’m resigning now and not planning to seek employment at a company for a couple of years. My present employer is asking me to withdraw my pf or else they’ll stop paying 8.5% interest on account after 2 months of resignation and pay only simple interest.

    I’d like to continue with the savings in PF in their present form. Can you advice me whether –
    a) the company’s stance is correct
    b) what are my options with this money if i land up withdrawing it?

  130. Hi Sangeeta,

    I am not sure about this situation – but I think this should be possible. It would be best to check with your HR / finance departments.

  131. Hi Hira,

    1. If the company has a private PF trust, it can ask you to withdraw the amount. (This is because they have to pay a high and guaranteed rate of interest).

    2. There is no special consideration for this. You would need to invest this like any other lump-sum amount that you would invest.

    If you are interested in a personalized consultation about this investment, you can avail of the “My Financial Plan” service offered by me.

  132. Harish Bhatt says:

    Pls. confirm the procdure, how to withdraw VPF

  133. Dear Sir,
    I have opened a vpf account in my company from when i started my career(3.5 yrs back).Since am getting married in march I want to take out the money from the account. Could i know the procedure and the time taken to get the money.Thanks in advance!

  134. Muni Shankar says:

    I am Muni Shankar. I worked for heavy Water Plant (manuguru), a unit under Dept. of Atomic Energy for 4 years 10 months. I resigned and want to withdraw PF amount. Administrative Officer is saying that I will not be getting the Govt. Contribution towards my PF as I didnt complete 5 tyears of Service. Is it manadatory to get employers contribution??
    Please tell me.
    Muni Shankar



    I have worked for a company for the past one year and i resigned my job, now i am doing my own business. Can u suggest how to continue my EPF same account, pls clarify.


  136. Hello P K Parihar,

    My experience lies with employee-related PF / EPF / VPF situations, and not employer related ones. With that caveat, here is my comment.

    In my opinion, the government determined rate is the minimum rate that has to be matched by other PF trusts. They are allowed to give a higher rate, but not lower.

    However, if the trust earns higher return and decides to give lower than what it has earned, it is allowed. In this case, the trust would accumulate earnings which can be used for distribution when it can not earn the government mandated rate.

    A retiring employee can not claim a share in such a surplus.

  137. Hi Bharthasarathi,

    Contributions to PF can happen only through deductions from your salary. So, you wouldn’t be able to make any more contributions to your PF.

    You can however consider:

    - Public Provident Fund (PPF)

    - New Pension System (NPS)

  138. Ours is a college of Delhi University. We have our own ‘Government’ for managing PF. The investments have yielded high returns. Most colleges are paying interest rates based on the earnings, i.e. not dependent on the GOI rate. However, in some colleges higher rate of interest is being denied on the plea that the rate can not be more than the Government of India’s rate. Who is correct? And, if lesser rate is paid (than what could be paid) what happens to the ever growing surplus? Can a retiring employee claim his share in the surplus?

  139. I worked for one company for a year and then switched jobs. I also transferred my PF amount to the new company. At this company I worked for 3 years and then resigned. I am now working in a third company which does not have any PF deduction. My PF amount for the earlier 4 years (1 + 3) is still with the earlier company and is earning interest. If I wait for 1 year before withdrawing to complete the 5 year period, is this amount taxable? This is a peculiar situation since although account is active there is no PF contribution in the third company. Does this fall in the 5 year period after 1 year or it will still be taxable.

  140. Hi, i will be resigning from my current employer after 10 years of service and going abroad. I understand I can leave the accumulated pf balance for a further period of 6 months earning the same pf interest rate…is this correct? Ajay

  141. Also if i have resigned from my employer and gone abroad as an NRI – can I still make voluntary contributions to this account by leaving it with the epfo?

  142. Hi Raag,

    Nice info on your site. great!!

    I have changed my jobs 2-3 times. But till date I could transfer my PF only once during my first job change. Since then I could not transfer my PF but changed my job twice. both these are reputed. Kindly tell me will that money safe?

    Also, I have heard that, in India every employee will have his/her unique PF account, In case of job change that person need not worry about his earlier PF amount. Is it so?

    Thanks in advence.



  143. Anonymous says:

    Hi Ajay,

    I do not think there is a limit of 6 months. If your PF account is with the government PF trust, you should be able to keep the money there till you retire.

    PF contributions – employer’s contribution and VPF – can only be done through payroll. So, you would not be able to make further contributions.

  144. Anonymous says:

    Hi Dinesh,

    I am glad you liked the website – thanks!

    Don’t worry, money in PF accounts is absolutely safe. Please talk to your current employer who would help you transfer money from your previous employers’ PF account to your current PF account.

    What you have heard is right, but is still not operational. Hoping that such hassle-free times would come soon….

  145. Anonymous says:

    Hi Muni Shankar,

    I do not know of any such rule – where employer’s contribution is not paid is you resign before 5 years.

    However, many rules are different in case of government employees, as the employer in that case is government. So, I would recommend you double check this with your colleagues and your personnel / finance / accounts department.

  146. Anonymous says:

    Hi Sandeep,

    For withdrawals to be tax free, the account needs to have contributions for 5 years. Thus, in your case, a withdrawal would be taxable.

    I would anyway suggest you reconsider your decision to withdraw it, as this is means for long term (retirement) saving.

  147. Hi Raag,

    Let me tell you that you are doing a great job. This site is so informative and I also see that you have made sure you respond to each and every query on your site.

    Ok. My Query – I joined a conpany in July 2003 (Started PF contribution) and migrated outside India in 2005 (PF contribution stopped).
    This year I sent a PF withdrawal form to my employer and I was informed that Tax will be deducted from my payment.

    I understand that I do not have 5 years of continuous employment (contribution) but I read on the EPF India site ( that provident fund can also be withdraw “On migration from India for permanent settlement abroad or for taking employment abroad”.
    Could you please comment on this. Thanks in advance.


  148. Hi Tipsy,

    Thanks a lot for the very positive comment… It is really encouraging to hear such things from the readers!

    Coming to your query…

    You are rightly concerned, but the details on the PF site are about the amount that can be withdrawn. It doesn’t talk about its taxation.

    So, yes, you can withdraw the full amount if you migrate, but it would still be subject to the taxation rules, according to which withdrawal in your case would be taxable.

  149. Dear Raag,

    Is it possible to make a one time voluntary contribution (of 1 lakh or more) to the PF account over and above the monthly contribution, and knowing well that there will be no corresponding contribution by the employer?

    Thanks and regards

  150. Anonymous says:

    Hello Balasubramanian,

    The contribution to VPF has to be through the payroll – that is, through your monthly salary. It can’t be a one time payment.

  151. Hi raag,
    i really appreciate your effort & work and m sure all this info is really fruitfull for all of us. My query is “i was working with one of the org’n and its being almost 5 yrs that i resigned from there. Since i’ve not taken clearence from there i didn’t fill the PF form. So pls suggest how can i withdraw my PF money from that compy, do i need to undrgo a clearence process?? or i’d withdraw without doing that” And since they hv calculated recovery from my side i do not want to do that clearence. pls advice…. Nayan

  152. Hi ,

    This is a very interesting site for PF queries,Appreciate your effort on replying back to the queries…

    coming to my query i had applied for my PF and the point is i just got apart amount out off my actual money(its been 4 months that i got the partial amount) and my company guys asked me to wait for some time for the rest amount,how do i avail for my rest money can u please clarify my query.

    Thanks & Regards,

  153. Dear Sir

    Due to unemployment and lack of income I have prematurely withdrawn my PF before the mandatory end of minimum 5 years of maintaining the PF account

    The sum of money is Rs.6 lacs of which Employee contribution is 3 lacs (with interest) and employer contribution is 3 lacs with interest

    Can I avoid income tax on the relevant parts (ie barring Employee contribution principal) if I put that amount of the corpus in repaying my home loan , as that will reduce my monthly burden a lot ?

    Thank you very much for providing this great service to citizens and look forward to your advise

  154. Sir,

    I am working in a society office where there are 12 employees. We want to join in EPF schem. If yes please send details of it .If no please tell me best schem for us.

    Thank You,

    With Regards,


  155. ADIL BASHA SHAIK says:

    can i know how to check my PF amount online..??
    Iam having some doubts about my PF amount…
    PF amount was depend opon our basic..and the same amount will be contribute by company, but for a year of cuttings I didn’t get that much of amount what they are cutting…
    How can i know about that details..???

  156. Hi,

    I wish to change my % contribution to VPF from 18% to 8% now. Please advice the forms that I need to re-submit to my Company HR.


  157. Siva Rama Prasad Tumu says:

    What is the maximum limit for VPF contribution? What % on basic is allowed? Under which section.

  158. Thanks for sharing the PF related information with all of us. Your answer will be very helpful for most of the readers.

    I have one question.

    Previously I worked for IBM India and till now I have not withdrawn or transferred the PF amount. In IBM I opted for Voluntary Provident Fund for 5 months and then did not opt for this option. Now I want to know is the Voluntary Provident Fund money is present in the same account with the normal(mandatory) Provident Fund account or any new PF account was created for the contribution for the Voluntary provident Fund amount.

    Thanks in advance for yr help…

  159. Avinash Goenka says:


    I changed my job within India after an experience of 3.5 yrs.
    However, I didnt transfer my PF account.

    If I try to withdrwa my PF money now i.e. after 5 yrs of my old PF account, will I still be taxed on that?


  160. Hi Raag,

    I am leaving my job Feb 11 2010 for taking care of my baby and will not be joing work for next 1-1/2 -2 years. I am having my PF account from Oct 2010. As this is less then 5 years, the amount will be taxable. My PF amount will be added to my income and according to tax slab the tax will be deducted. My doubt here is as I will be getting my PF amount in financial year 2010-2011 and since I am won’t be working my only income for financial year 2010-2011 will be my PF amount. So how they are going to calculate my tax?
    Please let me know.

    Thanks in advance!

  161. Anonymous says:

    I would like to know the procedure to close my PF account and would like to know if there will be any tax on the amount on closure and how much percent it would be.

    My PF account is 4 months short of 5 years. From feb 2009 i am not employed and would also like to know hw long will it take to receive the amount.

  162. Anonymous says:

    i have a query regarding PPF. I have a PPF account with SBI bank. Following i am listing the installments i have made towards my PPF account.
    31-Mar-10–510 (interest credited)
    can you please explain to me how the interest component has been calculated by SBI (8%). Also is the interest credited only once a year (i.e. on March 31 on total amount) or every month (on each installment individually)? i am confused as to this aspect. Would be obliged if you could clarify this for me.
    User ID: linty13in

  163. Dear Raag,

    Request your help for the following queries:

    Have completed 4 years of continuous service with my existing employer and would be now be joining another organisation. Since withdrawal at this stage would have tax implications, please suggest if:

    a. I do not transfer or withdraw the amount now and withdraw that only after one year i.e. after 5 years of account opening, would I be liable to pay tax then also.

    b. if tax is payable, is there a way out, like I continue to contribute the amount that was getting deducted from salary so far or contribute mine and employers share both.

    c. If I transfer the PF account to my new employer and withdraw after 1 year (after 5 year completion period), what is the amount upto which I can withdraw (i.e. the balance brought forward or a certain % of the total amount, etc.)

    Your response would be of great help!!



  164. Anuradha Gupta says:

    Is it mandatory for a company having more than 40 employees to have provision of provident fund?The contract of the employees in the company is renewed annually.If company is not having the provision of provident fund,what to do?

  165. Sonu Kumar says:

    Dear Sir,

    I need the information regarding the above sub. & i have invest the amount 8000.00 Rs. per month of my salary in VPF. So when i can withdrawl the amount of the same or how much part. pls. give detail of the same & also give fully detail of it related the tax saving & withdrawl related.

    Also i amrequested to u pls. aware me for ppf function in govt. psu sector.

    we are urgenty waiting of ur reply.


  166. Hi,

    I am currently working in a MNC where my PF account is maintained regularly, I have an offer from a mid sized company but I am surprised that they have not yet registered in the Profident Fund. I have maintained my PF account fort 4.5 years and now thinking as to what to be done.

    Is it ok for a company to not participate in the PF.

    I am in a dilemma whether to join the company or not.

    Please advise.


  167. Dr S Bhatoa says:

    These days comments are not replyed.Are you busy?
    Kindly give us much needed advice on various tax related issues as the end of finacial year 2009-10 is approching near.
    Please oblige.

  168. Sonu Kumar says:

    Dear Sir,

    I need the information regarding the above sub. & i have invest the amount 8000.00 Rs. per month of my salary. So when i can withdrawl the amount of the same or how much part. pls. give detail of the same & also give fully detail of it related the tax saving & withdrawl related.

    Also i amrequested to u pls. aware me for ppf function in govt. psu sector.

    we are urgenty waiting of ur reply.


  169. Prasinair says:

    Dear sir,

    After working for 2 years with a public sector Bank, I resigned from the service wef 01.03.09.
    1. It has been informed that I am not able to recieve the Bank,s contribution to PF account- as I have completed only 2 years of service.- whetehr the same holds true
    2.Whether refund of my contribution will be added to my taxable income for the CFY
    3.Even after 1 year I have not recievd the PF refund. Is there any provision which make the refund faster.


  170. Hi

    I’ve been holding a PPF account for the last 9 years. I’d made a withdrawal in September 2009. Is it possible for me to make a withdrawal in April 2010 since it’s the start of the new financial year.


  171. i m working for tcs. i m paying 12% of basic salary to pf but i m looking for a much more savings. what do u sugggest me to go for vpf or for some long term life insurance ? which amongst these is a better savings plan ?

  172. satyanarayana says:

    Dear sir,

    I am Working in A small company Where PF is Deducted. So i want to Contribute VPF for Two Months. What Is the procedure and how to apply? can appy through net.

    thanking you

  173. Sir,
    I need one clarification.

    one of our empoloyee has attained the age of 58 yrs in the month of june 2008 and we stopped remmitting pf june 2008 onwards. but contribution on vpf is continued till march 2009.

    can we do contribution on vpf with out contribution in pf?
    and Please let me know the section regarding this according to the act.

    thank you

  174. My PF account was opened by first employer in April 2007.
    at that time my salary was under 10% tax range. I left the company after May 2008.
    i was job less till nov 2008. So after that the PF account is inactive , In nov 2008 i joined a company under the 30% tax bucket .here I opened a new account with the company.
    I have two queries -
    Can i transfer my current account to the gov PF account right now.
    I am planning to go for higher studies in 2012 . so if in 2012 , can i withdraw PF money that what will be the deduction? will i get the interest earned at prescribed EPF rate.

  175. Hi,

    i have resigned for reliance and joined in TCS but i havent yet taken my PF amount from reliance and i have opened a new PF account in TCS. Please let me know if govt pays me intrest for the PF amount which is held with my previous company.

  176. K DhanasheKhar says:

    How much worth of thanks I am want to tell to you I don’t know.

    But it is intriguing me to ask about compounding of interest in VPF and PPF. The beauty in PPF is, after 5th year we can withdraw an amount in April after claiming the tax rebate in March. But the interest is 8%. I am having VPF account also which offers 8.5%.
    Now I want to know that which is better to park larger part of money not including advantage of one time/monthly deposit. Please advise.

  177. Dear Raag.

    I’ve a query regarding PPF and VPF. I think the interest rate for the current FY (2009-10) for PPF is 8.0% and that for VPF is 8.5%. Does it mean that investing in VPF will give more return (albeit 0.5%) than in investing in PPF? Do you then suggest investing in VPF over PPF? Are there any disadvantages of investing in VPF over PPF?

    Thanks in advance.

  178. mohd ibrahim warsi says:

    Dear Sir, I have got a group of farmers more than 5000 in various districts of uttar pardesh and they are interested to invest their money as saving and security in ppf scheme they are not employed they all do farming only and are associated with me through my agricultural business, is their any way that i may help my group regarding this if their is kindly provide me all details benefits and what to take first step to start this.thanks

  179. saravanan says:

    I have a EPF account completed 3 years. I understood that if i withdraw before 5 yrs completion the tax will be deducted. I have read in some article, while withdrawing the pf before 5 yrs , to avoid tax, we can request for Bond with lockin period instead of cash. Could you please confirm, if there is a provision.

  180. Dear Sir,

    Could you please send me the website to download the Voluntary form for PF


  181. Hi.. it is really a good article…I have one question..
    Is VPF under Chapter VI A.. I mean, will it be included in the 1 lakh amount that can , at max, be deducted from salary.. or is it an additional benefit for tax exemption??


  182. Anonymous says:

    Hello Sir

    I need clarification on PF withdrawal

    1 I worked in a company from 2nd Aug 2004 to 08 jan 2007 after that I joined another company where I worked from 09 jan 2007 to 15 Dec 2009.
    I have withdrawn PF of my first company instead of transferring it. Now i want to withdraw PF of second company. Will it be taxable if yes at what rate as my company want to deduct TDS@ 30% rate. Is there any way i can withdraw PF without deduction of TDS.

    Thanks in advance

  183. Anonymous says:

    I am 33 years old and I left an organisation during Sept 2010 for marriage purposes. My marriage is fixed on March 2011 and since 6 months there s no PF paid. Now I want to retain my 3 years of tenure and withdraw the amount. Can i fill both forms 10C and 19 for the same. Please provide the process. Also I am planning to start working from May. Can I shift the tenure to the new PF account so that after 7 years I would be eligible for pension. What is the process for the same when I join new company. Also previously I was working in two different organisations but had not transferred the PF account to the RECENT company due to gap between the joining dates. Can I apply for withdrawal for those two as now i am not working anywere and it was 5 years back..

    Please help.

  184. Anurag Kumar says:

    I have an EPF amount lying with my previous account with one of the employers and have yet not transferred same to my existing account with present employer. Recently I have observed that TDS has been deducted on the income on my EPF account in the last financial year. A form 16A has also been issued by the concerned EPF trust.
    Pls let me know
    (a) whether I’ll now have to show the above income in my IT return as “income from other sources” and hence get it taxed at 30% (which is my slab).
    (b) What if now I get the account transferred to my present account, whether the TDS deducted can be refunded back?
    I have been in continous employment, the only thing being that the account is not transferred.

  185. My company tells me I cannot contribute to VPF as they do not have that option given to the employees here – is this valid? Do I have any other way of saving for my retiement?

  186. Ramakrishna P says:


    I am contributing 5000/- per month for my VPF since 3 yrs. Now i want to discontinue my VPF. I sent an email to my HR, They did not agree and given the below reply. Please look into this and clarify ASAP.

    1 Employee once opts for VPF can’t discontinue the contribution in mid of the contribution Period (March to Feb)
    2. Employee is not allowed to make any change (increase or Decrease) during the contribution Period (March to Feb).
    3. Any changes in contribution or discontinuance of VPF contribution can be allowed only in the month of March (i.e, beginning of the contribution period)


  187. my father was working for ITDC in delhi and he took voluntery retirement after 22 years, please suggest me if we would be able to get some sort of pension in this case.
    please help me

  188. Mukesh Agrawal says:

    I am contributing towards VPF for last 4 yrs. now i want purchase a flat and for this purpose want to withdraw the amount from my VPF amount.

    Please clear :
    whether I can withdraw the VPF amount and how much it take usally for processing the same.
    whether there is any loan facility against this VPF amount.


  189. CHAVAN ROHIT says:

    I want to know how to fill in the challan of VPF amount and percentage calculations. please let me know.
    thanking you,

  190. Anonymous says:

    I recently moved companies.
    Going by the various inputs from ppl, transferring the PF looked very unpredictable as to when the transfer would actually happen. So i decided to withdraw my pf and have already done the paperwork for the same.

    Which would be the best outlet for me to re-invest the PF amount that is going to come to me? As you’ve reiterated that its a saving for the time of retirement, Im looking for long term investment and also an investment where the returns are tax free. PPF looks like an option but only Rs70000 can be invested in a year. I’m looking to invest the entire amount what would be my top options?

    Thanks in advance.

  191. This Article is really very informative….

  192. vishal kapoor says:

    Hello , Thanks for doing all the good work.
    I had a query on Voluntary PF. I suppose this is over and above the compulsory PF thats deducted from my salary.
    How much is the interest rate on VPF? Is it 9.50% tax free??
    Morever, i cheked my salary sheet, my employer- an MNC bank is dedcuting only 10% as PF contribution, Should not it be 12%.

    Pl guide, Thanks

  193. this is very informational .

  194. Sir.
    Saving money in vpf,After howmuch time we that money ?

  195. Anonymous says:

    I was working in PSU and retired after superannuation. I have collected my total PF amount. I also started getting the EPF pension after 58 years. Now I am working with a private company. They want me to open a new PF account and want to deposit the PF. As per site of EPFO, i can not become a member of EPF pension after 58 Yrs. My emoluments are more than Rs.7000/- per month. I am not interested in PF any more. Is it a must for me to become PF member again? What are the PF rules regarding becoming a member again after I have withdrawn the total PF after superannuation? Pl. advise.

  196. Murtaza says:

    I will retire this month. I prefer to keep the money in the PF scheme for some more time as I dont want to withdraw it yet.

    Is it possible?
    How do I go about it?
    Can I withdraw it at a later time without any issues?

    Please advise.

  197. Deepak Maheshwari says:

    Hi Raaga

    Hi Manish

    Request your expert comments on VPF

    I understand we can invest up to 100% of Basic + DA as VPF, My question is if entire amount invested in VPF will be tax free or only 1 lakh ( 80C) . Suppose my basic is 25K and I choose to contribute entire 25K per month to VPF then does it mean my taxable income decrease by 3 lakhs ? ( Knowing 30% tax rate , isn’t it great saving itself ??) . My whole confusion is due to mixing Provident Fund contribution with 80C where only 1 lakh can become non-taxable


  198. Nandita Srivastava says:


    I left my previous organisation in November, 2010. My application for PF withdrawal got submitted in PF office in June, 2011. I have not got my amount yet. Please let me know:
    1. The time it takes
    2. Would I get interest from November – till date

    Many Thanks

    • Hi Nandita

      Not sure if your status is the same now when the question was posted. By the Act, it should take 30 days :) However, It can take anywhere between 3 months upwards. I got mine after 10 months. You should know that staring Jan 2011 – all the PF offices went thru major revemp and that stalled the processing of all the withdrawal / transfer forms. It was started only in July / August. It will help you to visit the PF office where your account is administered. You can meet the case officer and see if there are any issues with the form etc. That may help in terms of getting your form priority for processing.

      Oh and you will get interest till the date of payment.

      Hope this helps.

  199. Imran Basha says:

    Am having an question about form 19 and 10c .
    If I worked less than 6 months in an organisation , were my pf is deducted 12 % , and i have the share from employer too, i know that I am eligilble of withdrawal for form 19 .Now the thing is am I eligible to apply for form 10 c . if no please reply.

  200. Y.Chakradhara rao says:

    Sir, our Educational Institution is brought into 100% grant-in-aid by State Govt of Andhra pradesh.Till now we are in EPF scheme.Now the Govt of A.P. have asked us to agree to trnasfer of Employer’s share of EPF including pension fund to GPF account State Govt. we agreed. Employees’ share of EPF & Pension fund is paid to us.
    My query is whether the amt of EPF& Pension fund paid to us before retirement is taxable or not. Pl clarify

  201. Hi RVD,

    Can you please let us know which Govt. website can be used to check EPF balance online? Please consider this a query specific for the Mumbai Regional PF Offices.

    • Hi FDN is the site you want to visit. The regional site takes you to ‘mother’ site for claim and EPF balances. As on date, only the operative account balances can be checked. Also, the data may not be fully uploaded so you will have to try your luck here. If you are in Mumbai, in my opinion, it is worth your time to visit the appropriate office. If your account is old, you may see the entries and balance in their ledger (it may be dated but something is better than nothing :) .
      Hope this helps.

  202. hi ragav,
    i need once clarification on the employer’s contribution.

    is ther any sec under PF rule that the employer no need to invest their contribution towards EPF.
    or all the employers have to pay their contribution towards EPF.

    Kindly clarify the same.

  203. keepyourshirton says:


    The excel sheet is no longer avaailable for download. Please re-upload.Thx

  204. Hi Raag,

    My Situation is:

    I have my PF account transferred from office ‘A’ to office ‘B’ by submitting Form 13. I am also given Annexure K from office ‘A’ with the details of the transfer. The provident fund amount details are all shown.

    My question is:
    1. In this Annexure ‘K’, it shows the Pension fund statement; but the total amount contributed is not shown – only the duration of membership in the pension scheme is shown. Is this correct

    2. Is it required to apply for a Scheme certificate or something for the Pension contribution part or will this contribution be automatically recognised/added in Office ‘B’?

  205. Animesh Jain says:

    Hi Raag,

    I have been placed very recently at nvidia. I will most probably go for higher studies after 2 years. Now, I will need all the money after 2 years to pay the education fees.

    First of all, is there any scheme in which I can invest to get tax benefit and also withdraw from it after 2 years.

    Secondly, I heard from my friend that the PF ( also VPF) can be withdrawn if you leave the service. Is it true? And what will be the tax scenario in that case?



  206. Praveen Chandra Bhaskar says:

    Hi Raag,

    I left my previous organisation one year back, In present organisation I dont have PF benefit, Next month I am going to join another company where I have PF benefit.
    I would like know…. Am I getting interest from last one year on my deposit PF amount.
    Can I transfer that a/c now in my current organisation ( Both organisation are of different state, Earler in delhi, new in Mumbai.


  207. Manoj Kumar says:

    Dear Sir,
    We have maintained PF Trust A/C under Limited Company. For Some Employees under (PF Trust) Left for the services before 10-15 years & till date they have not claimed for PF Withdrawal or Transfer. We have all Formalities complete for contact him but invain.

    Q-Can we stop P.F.Interest (under Trust w.e.f.01.04.11) for Left employees from the service before 10-15 years.
    If Yes,Pl confirm details with PF Section.

  208. one question regarding vpf:

    Assume base salary: 15lacs

    Let us say the employee has salary of 15lacs per year and he contributes 10% to PF [so the maximum 1.5 lac is deducted] during 2011.

    So after the PF deductions [10% of 15lacs] the employee taxable salary is 13.5lacs ? Am I correct ?

    Can he contribute additional 20% to VPF ? [i.e. 3lacs]. Can this 3lacs be tax free ? [what will be the taxable income now ?]

    will it be 15lacs – 10% PF – 20% VPF = 15-1.5-3 = 10.5 lacs taxable income ?

    [If the above is true, can this be extended to 88% of base salary and the employee pays no tax on his base salary ?]


  209. Hello,

    Request to address below mentioned queries of mine :

    1.How do one initiate VPF for stable and safe investments.
    2.My PF account with previous employer is dormant as my current employer is very small. In this case can I keep it active by opting for VPF. If yes what is the process.
    3.If above option is not feasible, then what other alternatives you recommend. ( I don’t want to keep it dormant for longer time)

  210. This is very informational.

    Can anyone help me to find the current amount available in my PF account. How do i do that? Thanks.

  211. Hi,
    I recently switched from company A to Company B (Both of my employer provide EPF Facility). I don’t required cash at the moment, Can you please let me know what I should do for my EPF amount so that I can get max beneficiary. I was last employer with my last organization with around 4.5+ Year (>5Y).

    1) I heard, sometimes it took more than 1Y to transfer funds from employer A to employer B, some time more than that as have seen that example.
    2) Can I continue my Employer EPF account no issued by A with new employer say B.
    3) If I request to transfer EPF amount from A->B, What will happen with the pension amount means will benefit (after retirement) be the same?
    4) If I opt for withdraw of EPF amount, 10% tax I hv to pay, And wil I also get my pension amount accumulated?
    5) Till what time my account will be active as no money will be deposited now on-wards into that account? (Time for account be dormant)
    5) In next 4-5M, my emp -A EPF account will complete 5Y, if I wait for that time, and request later, So will I get all my money back as a tax free?

    Thank you very much for your help,

    Looking forward positive reply from your side,

  212. Dear Sir,

    As an emloyer i had contributed in both PF and VPF, now if i switches to another firm. As it is good to transfer pf account so I will opt it. My query is whether my transferred PF account includes the last VPF amount also or I had to withdraw it during transfer.
    Kindly clarify my query.

  213. Hi
    I see My employer’s PF amount also getting deducted from My salary. Is that fine? They did not mention regarding this when was offered job :( And I see in my CTC they are deducting PF amount of only mine and there is one more column claled special allowance section n can they deduct from there?


  214. Hi Raag,

    I apologise in advance bcoz im new to the field. I mean i started wotking just now and wanted to have some information. I and my company both contribute towards PF so it means that when i withdraw i get the amount contributed by me + the amount contributed by the company + interest. Is it true? My second que is if i change the company and transfer my PF account , then into which account the PF gets submitted till the time my account is transferred. I mean i have heard that it takes considerable months or may be a year till my account gets transferred. I hope you will provide the required information.

    Thanks in advance. :)

  215. Praveen Kumar says:


    I recently jointed another company. New company does not have PF facility but will start soon as it is more than 20 employees. My question is that during getting clearance from my previous company, i got the PF formalities done. I filled the PF form and a cancelled cheque was also attached. Was this done for PF withdrawl. Or this is a regular practice. Should PF be withdrawn. Also, if i do not deposit this form in PF office, what will be the implications.

  216. How we can get a PF amount before resignation in present company.
    Plze mail valueable suggestion :

  217. Can we check our Balance of VPF?

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