PF Withdrawal: Provident Fund Account holders alert! Avoid committing these mistakes to save hard-earned money
Provident Fund withdrawal: Generally, when people switch jobs, their tendency is to withdraw money from their PF account rather than continuing with the same account at the new recruiter.
Provident Fund withdrawal: Generally, when people switch jobs, their tendency is to withdraw money from their PF account rather than continuing with the same account at the new recruiter. In that case, an employee opens a new PF account in another company, which is a big mistake by not giving their old Universal Account Number (UAN). Since everything is now connected with one's Aadhaar Card number these days, if the existing PF account is attached with the Aadhaar number then the new UAN won't be opened but if the PF account is older one then there are chances of new UAN allotment. Once the person gets registered with a new UAN, he or she can only see a new company's passbook or PF transactions.
Speaking on the two UAN for one earning individual Manikaran Singhal, a SEBI registered tax and investment expert said, "Today, having two UAN is not possible because it's now attached with one's Aadhaar number. But, in case the PF account is more than 6-7 years old and the job hopper has worked in the same organisation for such a long period of time, then it may happen that one's PF account is not connected with his or her Aadhaar Card number." Singhal said that having two different UAN numbers will make it difficult for the PF account holder to see the details of one's account as the old fund gets frozen. Those who have two UANs can't even transfer their old PF balance to their new account. Hence, it is necessary that both UANs be merged.
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But, the million-dollar question, is it possible? The answer is yes. It is easy to merge both UAN numbers together by exercising either of the two options: Sending an e-mail at EPFO office by updating them about their UAN. via mail at email@example.com. Here we have to match the old and new UAN number. After this, the EPFO will cross-examine both of your UAN numbers and after verification, your old UAN number will be blocked from the EPFO's side. After this, you can apply for transferring your old PF deposits into your new PF account.
If one's PF account and UAN are inter-linked then can use other option by logging in at the EPFO official website. In this option, the EPFO subscriber has to log in at epfindia.gov.in. There they need to go to the 'Employee One EPF account' option and enter their registered mobile number, company ID, UAN number, etc. After this, enter an OTP received on your mobile number in the given column. Now select the option, 'click on a new page' to get all the details of your old EPF. After you select this option, all your old PF details will be filled in the given column automatically.
Now follow these step by step guide for successful correction of the error committed with your Provident Fund account:
1. Claim the transfer of the old PF account deposits to your new PF account, on the EPFO portal.
2. After the request for transfer, the EPFO will verify your transfer claim and you can start the process of both UAN linking.
3. After the transfer process, the EPFO will block your previous UAN, which can never be used after de-activation.
4. Once the EPFO has validated your new UAN, it will be linked to your PF account automatically.
5. The EPFO will send an alert to the Employee via SMS, about deactivation of old UAN, while activation of the new one.
Speaking on some other common mistakes that a PF account holder commits Jitendra Solanki, a SEBI registered tax and investment expert said, "If you don't withdraw your PF in his entire career, you become eligible for the pension benefits post-retirement. So, PF withdrawal leads to denial of this pension benefit." Solanki said that there is a myth that PF withdrawal is income tax exempted, which is absolutely false. Your Pf withdrawal is income tax exempted only when the PF account is more than five years old. If you go for Provident Fund withdrawal before five years of the PF account opening, the PF balance credited to one's bank account after the income tax deduction.
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