If many of these people are discovered, they will shift employment every two to three years in search of higher pay and better chances. However, people frequently neglect a crucial duty as a result of the euphoria of an increase in wage, which can lead to the imposition of large taxes. Actually, the PF account is the topic at hand. After moving jobs, merging PF accounts is a crucial task.
A mandatory retirement savings scheme managed
by the government is called Provident Fund. This method is likewise being implemented in numerous other nations. This involves both employee and company contributions with the goal of giving the employee financial support once they reach retirement age.
PF Account In contrast, you receive a Universal Account Number (UAN)
from EPFO when you begin employment. Then, your employer creates a PF account under this UAN, to which both you and your employer make monthly contributions. Additionally, when you move employment, you give your UAN to the new employer, who then uses it to start a new PF account. As a result, your new employer’s PF contribution is deposited to this new account. It is crucial in this circumstance to combine the previous PF account with the new job and the new PF account.
Withdrawal of PF
It is possible that the money deposited in account needs to be removed for one or more reasons. Government regulations provide that you are free from paying any tax on withdrawal in this scenario if your employment with the company was less than five years and the total cash put was less than Rs 50,000. However, 10% TDS will be taken out if the amount exceeds Rs 50,000. On the other hand, there won’t be any tax on your withdrawal if you’ve completed five years of service.
Combining PF account
All of your experience will be added to UAN if combined. However, if they are not combined, the experience of each firm will be added separately, which will result in TDS being deducted when the money is withdrawn.
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