Transfer of PF Funds
Transfer of PF Funds
The Government and EPFO has recently introduced various initiatives to streamline and quicken various services associated with the management of PF funds. Prior to the introduction of the Unified Portal, withdrawal and transfer of PF funds used to be a painstaking activity, requiring the approval of the previous employer. However, with the introduction of the Unified Portal and UAN, the EPFO has streamlined the process for transfer of PF funds and made it completely online. In this article, we look at the process for transfer of PF funds in detail.
Transfer of PF Funds vs Withdrawal
Transfer of PF funds is initiated when an employee changes employment. Previously, to initiate transfer of PF funds, the employee would have to obtain signature from the old employer for transfer of PF funds. However, under the new Unified Portal, employees having UAN can easily transfer PF funds online without the approval of the previous employer.
Transfer of PF funds is different from withdrawal of PF funds. In case of PF withdrawal, money in the PF account is paid out to the employee for certain types of events like marriage, illness, retirement, etc.,
Benefits of Transferring PF Funds
Transfer of PF funds instead of withdrawal will help the subscriber reap the fruits of labour without any tax-cut whatsoever, as closing a PF account before the expiry of five years will result in the PF amounts being taxed. Hence, for most subscribers, its better to transfer instead of withdraw from their PF account before the end of 5 years.
Process of Online Transfer of PF Funds
To complete online transfer of PF funds as mentioned below, the employee must have an UAN that is linked with Aadhar, bank account details and mobile number. Further, EPFO Unified Portal must contain the account numbers of both the PF accounts i.e. the previous and the present.
Steps to Transfer PF Funds Online
Follow the steps below to transfer PF funds online.
- Login to the official website of the Employees Provident Fund Organization using the UAN and password allotted to you.
- Click on the Online Transfer Claim Portal under the category “For Employees”.
- Check your eligibility with respect to online transfer. If ineligible, you have to rely on the alternative method of filing physical copy of Form 13, either to the present or former employer.
- If found eligible, under the online service dropdown box of the claim section, select ‘Request for transfer of funds”.
- The online version of Form 13 will now be displayed on the screen. Here, PF numbers should be filled with both current and former employers.
- Select the option ‘click here to get details’. Details pertaining to the employee, organization and the EPFO account will be displayed in the screen. These details must be duly verified.
- You will be inquired whether you want to get the claim attested to the present or former employer.
- After confirming the same, an OTP will be sent to the registered mobile number, which must be verified.
- After the OTP verification and agreeing to the declaration form, the transfer request will be submitted, and the tracker ID will be generated.
- This form must be signed by the subscriber, after which it shall be sent to the present or former employer within a period of 15 days.
- Electronic verification will be processed by the current and former employers.
- Funds will be credited to the member’s account after the concerned employers approve the transfer.
Once the PF transfer request is submitted online, the status can be checked online. Know more about PF status check.
Post by Sreeram Viswanath
IndiaFilings is India's largest online compliance services platform dedicated to helping people start and grow their business, at an affordable cost. We were started in 2014 with the mission of making it easier for Entrepreneurs to start their business. We have since helped start and operate tens of thousands of businesses by offering a range of business services. Our aim is to help the entrepreneur on the legal and regulatory requirements, and be a partner throughout the business lifecycle, offering support at every stage to ensure the business remains compliant and continually growing.