If you've switched your job and wondering which form is required to transfer claim provident fund, then this article is for you. Using the transfer claim provident fund, the PF sum from your previous employment is transferred to your current employer. This makes it easier to have all PF funds in one account.
Furthermore, the user can save a lot of time by transferring his provident fund online from the comfort of his home or place of employment. Follow the steps on the internet portal to move your old EPF accounts to new ones.
Online document uploading is also a part of the process, saving the employees the burden of having their documentation physically validated by the business (the documents are verified digitally).
In today’s guide, we’ll discuss about central transfer claim provident fund account and its related information. Let’s take a look the table of content that we discuss ahead:
- What is Provident Fund?
- Provident Fund Contribution
- PF Transfer Form: Form 13
- An EPF Account Transfer
- Conditions for Eligibility
- Step-by-Step Process to PF Transfer Online
- Information that You Should Include
- Information that the New Employer Must Provide
- Required Documents for the Transfer
- Factors to Consider Before Making an Online PF Transfer
- How to Use UAN to Transfer PF Online?
- What Use Do UAN's Online PF Transfers Serve?
- Why Transfer from EPF to NPS?
- Frequently Asked Questions (FAQs) Associated with PF Transfer
- How Deskera Can Assist You?
Let's get started!
What is Provident Fund?
A provident fund (PF) is a type of retirement savings fund that is set up by an employer and funded by both the employer and the employee.
The money contributed to the fund is used to provide benefits such as a lump-sum payment at retirement, disability benefits, or death benefits.
Provident funds are primarily used in India and other countries in the Indian subcontinent, but are also found in some other countries, such as Singapore and the United Kingdom.
Provident Fund Contribution
The following categories show how the employer contributes:
The employer and the employee must jointly contribute to the EPF. The employee's base income and dearness allowance each contribute 12% to the EPF.
Here are the details of the employer and employee contributions to the EPF:
Employee EPF Contribution: Each month, the employer deducts 12% of the employee's pay as an employee EPF contribution. The entire contribution is deposited into the EPF account.
Employer's EPF Contribution: From the employee's income, the employer additionally contributes 12% to the EPF.
Why do You Need to Transfer your PF?
Once they start working for one of the PF-registered organizations, employees are registered for PF reasons. The employee's PF receives contributions from both the employer and the employee, and interest is earned until it is withdrawn.
Additionally, switching employment for a variety of reasons, with or without a break, is rather common, especially early on or in the middle of a career. What transpires in this situation to the employee's provident fund account that was set up with the preceding employer? The employee in this situation will have two options.
- The employer may withhold the employee's contribution plus interest if an employee takes a break for more than 60 days; or
- Transfer your employer the balance.
PF Transfer Form: Form 13
The Employees Provident Fund (EPF) Scheme was established legally thanks to the Employees' Provident Funds and Miscellaneous Provisions Act, which was passed in 1952.
The programme aims to boost the retirement fund for the paid personnel in the private sector. The EPF programme is available up until the employee turns 55 and can be used if the person retires after that point. Form 13 PF must be completed in order to transfer your EPF account from one employer to another.
The employee is required to submit this form in order to transfer the data regarding the prior PF balance to the new account. This is required if a member from one establishment relocates to or joins another establishment protected by the EPF Scheme.
Only one account at a particular establishment's information can be viewed by a registered user. The information from the old account and the fund amount must be transferred to the new account using this Form.
EPFO introduces a new technique to make the transfer procedure transparent, efficient, and simple for you. Members may now submit transfer claims more easily online. A member may use Member Claims to submit a claim for either their present or past job.
All of these claim forms are simple for employees to complete, and employers may approve, submit, and verify/correct member information using Employer Claims. The claims must be submitted digitally with the authorized person's digital signature (Class II or higher).
Forms Required for EPF Transfer
Below is a list of the documentation that could be required while transferring PF online.
- For PF Transfer
- Use Form 13
EPF Form 13
EPF Form: The EPF includes a transfer form, which is available both online and offline. You just need to fill out and submit Form 13 for PF Transfer in order to transfer the EPF Account. The process is simple and straightforward to follow.
You can use this link to access the online PF transfer form.
Moreover, you can also get Form 13 PF Transfer straight from your employer, who also provides it.
An EPF Account Transfer
The EPF account may be transferred from one employer to another. A Universal Account Number (UAN), a unique member identification number that may be used to find your EPF Account, is provided to you when you join the EPF.
Each employee is assigned a unique UAN number that serves as their unique account number for the EPF. When you change jobs, it is simple to transfer your EPF account from your previous employer to the new one. As a result, rather than creating a new EPF Account in the case of a job change, the old account is simply transferred.
Conditions for Eligibility
To move your EPF from one account to another, you must fulfil the requirements listed below:
- On this EPF portal, the employee's UAN and the cell phone used for activation must both be active.
- The employer ought to have confirmed the account number and IFSC code when the transfer request was made, and the employee ought to supply that information as well.
- Aadhaar should also be used to seed the UAN account.
- The Date of Joining (DoJ) and Date of Exit (DoE), as well as the cause for the exit, should be included in the gateway.
- Per member ID, EPFO will only accept one transfer request.
Step-by-Step Process to PF Transfer Online
The EPFO has simplified the procedure of transferring your EPF balance. You can now use the EPF member portal to transfer money from your current EPF account.
Following, we’ve listed step-by-step process on how you can easily transfer EPF balance online. Let’s learn:
Log into your EPF account at https://unifiedportal-mem.epfindia.gov.in/memberinterface. You would need to enter your UAN number and password in order to log in.
Once you've logged in, select the "Online Services" option, and then click "One member - One EPF Account (Transfer Request)."
A new page would open with the details of the current EPF account, the name of the current employer, and the available EPF amount.
Choose the EPF account you want to transfer after reviewing the most recent information.
The EPF Transfer Form must first be attested by the new employer or the previous employer before you can submit it. Prior to providing your member ID or UAN, choose the employer through which you want your Form 13 to be certified.
When you select "get OTP," an OTP will be sent to your registered mobile phone. Enter the OTP, then submit your information to confirm it.
EPF Form 13 can be filled out online and downloaded in PDF format. Print the entry form.
Ask your employer to approve your EPF transfer request digitally. The employer can do this by logging into the employer interface on the EPF unified site.
As soon as the former employer has approved the transfer request, you can file the printed Form 13 with the new or old employer (as you have selected for attestation). This submission must be done within 10 days of making an online EPF request.
Information that You Should Include
Following, we’ve listed the information list that you should provide. Let’s take a look:
- Your name (as contained in the EPF database)
- Your father’s name. If you are a married woman, you should mention your husband’s name
- Name and address of the previous employer
- EPF Account number with the previous employer
- Details of who maintains the EPF Account in the previous establishment. It can be a regional PF commissioner or a PF trust. The name of the applicable entity should be mentioned
- The FPF Account number with the previous employer if you were allotted one
- Date of leaving the employment of the previous employer
- Date of joining the employment of the new employer
- Date on which the form is being filled and submitted
- Signature or left-hand thumb impression of the EPF Account holder
Information that the New Employer Must Provide
Following, we’ve listed the information list that your new employer should provide. Let’s take a look:
- Name and establishment address
- The EPF code and account number given to the new employee
- The new employee will be granted an FPF Account number if a special number is given.
- Information regarding the EPF account of the new employee. If the establishment is not exempt, the address of the regional or sub-regional office should be provided. If the establishment is an exempt establishment, the name of the private PF not covered by the Act or the name of the exempted PF trust must be mentioned.
- You should include the regional or sub-regional office's address where the employee's (if any) separate FPF Account number is held.
- Details regarding the payee
- Date of completion and submission of the form;
- Signature of the authorized representative of the new employer with the company seal
The amount of the EPF balance that was being transferred from one employer to another would also be filled out by the EPF office.
The EPF balance can be simply moved from one employer to another after the PF transfer form has been completed and submitted.
Required Documents for the Transfer
Check the following list of required documents that you would need for the transfer:
- The e-KYC must have been approved by the employer.
- For the former or current employer, there should be authorized signatures that are digitally registered at the EPFO.
- The employee's PF account number from both their former and present job should be stored in the EPFO database.
- There can only be one transfer request approved in relation to the prior member ID.
- The member must have activated his UAN using the UAN website, and the cell phone used for activation must also be functional.
- The employee's IFSC code and bank account number must be seeded against the UAN. To submit transfer claims, an Aadhar number and a PAN are not required to be seeded against the UAN.
Factors to Consider Before Making an Online PF Transfer
An employee must make certain of the following before submitting a PF transfer application:
- An active registered mobile phone with a UAN is associated with a bank account.
- The UAN is linked with the KYC.
- UAN must be active on the portal.
- Both PF numbers for previous employers and current employers are kept in the EPFO database.
- The authorized digital signatures have been registered for both the current and former employers.
How to Use UAN to Transfer PF Online?
Employers and employees can now use EPF accounts more easily thanks to measures adopted by the Employees' Provident Fund Organization (EPFO).
The EPFO is working to automate all EPF-related activities in light of the technological revolution, especially the laborious and time-consuming PF transfer and withdrawal processes. The EPFO created the Universal Account Number (UAN), which acts as a central repository for all of a person's Member Ids from multiple workplaces.
A single member's multiple EPF Accounts (Member Ids) can be linked via UAN. UAN offers a number of services, such as a dynamically updated UAN card, an updated PF passbook with all transfer-in information, the capability to link previous members' ID with the present ID, monthly SMS updates on the credit of contributions to PF accounts, and the capacity to automatically initiate transfer requests upon changing jobs.
What Use Do UAN's online PF transfers serve?
Each employer issues a unique member ID to the individual. The several PF account IDs that belong to the same person are connected by the UAN, or universal account number. Using the UAN has the following benefits for a person:
- Update the UAN card dynamically
- PF passbook upgrading (along with transfer-in details)
- Receiving an SMS message of the monthly credits to the PF account
- Account transfer by default upon changing employers
- Linking the ID of the current member to the previous member
Why Transfer from EPF to NPS?
Both EPS and NPS receive government funding and provide pension benefits after retirement. However, for the following reasons, some persons might choose to convert their EPF account to NPS:
- Employees in the public sector are required to register for an account on NPS, in contrast to those working for private companies. Employees will forfeit their EPF benefits when a job is transferred from a private company to a government organization.
- While EPF offers fixed returns and basically no risk, NPS offers a greater return compared to EPF at the cost of a relatively low degree of risk.
- Compared to EPF, NPS offers a more transparent investing choice because it gives you access to information about the investments being made with your money.
- Through investing in NPS, you can manage your retirement fund and make changes to your portfolio. You can improve your chances of generating better returns, for instance, by changing the asset allocation in NPS.
- NPS offers more tax benefits than EPF. You can deduct up to an additional Rs. 50,000 in taxes by investing in NPS.
EPF transfer to NPS
To convert your EPF account to NPS, you must do the following things:
- Activate your Tier-1 NPS account.
- You must get in touch with your company and request the authorized PF.
- The fund transfer process will then be initiated by the PF.
- Once the process has begun, your EPF corpus will be released.
- The demand draft check will be released in the employee's name.
- Your EPF account has been transferred to NPS, and you will receive a letter alerting you of this.
The EPF transfer amount is not tax deductible because it is not an actual investment made into the NPS account.
Several challenges must be addressed in order to switch from EPF to NPS. Therefore, it is advised that you carefully go over the entire process and only move your account if necessary.
Frequently Asked Questions (FAQs) Associated with PF Transfer
Following, we’ve discussed some frequently asked questions that might pop up in your mind associated with PF Transfer. Let’s learn:
Que 1: Online PF Transfer Advantages
Answer: If you are still working and would like to continue doing so, it is advised against withdrawing your PF corpus. PF involves almost minimal risk because it is a long-term fixed investment backed by the Indian government.
As a result, it is advised that you withdraw from your PF only in an emergency. It is better to transfer your EPF funds than to withdraw them. Employees who select the PF transfer option have a number of benefits, some of which are listed below:
- PF withdrawals are subject to TDS if the account has been open for fewer than five years. If you transfer your PF account and maintain it open for five years, you can withdraw your money without paying taxes on it.
- Compound interest is provided by EPFO on your savings. This implies that if you close your current PF account and start a new one, the interest earned relative to the transferred account would reduce.
- When a worker turns 58 and maintains the same EPF account for more than 10 years, he will not be eligible to collect a pension if he closes the account every time, he changes jobs.
Que 2: It is possible to withdraw EPF funds without a PAN?
Answer: If you try to withdraw money from your EPF without a PAN, you must pay TDS at the maximum marginal rate of 34%. However, if your claim is for less than Rs. 50,000, no TDS would be deducted.
Que 3: What is the Significance of linking UAN and Aadhar together?
Answer: The following are some justifications for tying your UAN to Aadhar:
- Your Aadhaar card, which contains all of your personal information, is one of the most important documents required for personal verification.
- You may ensure that the information you provide is correct and consistent by linking your UAN to Aadhaar.
- Only you can withdraw money from and make deposits into your EPF account, which is why EPFO has made it mandatory to link your UAN with Aadhaar in order to ensure security.
- Additionally, the Aadhaar data is used to verify citizenship.
- By integrating UAN with Aadhaar, duplicate accounts are prevented, ensuring that only one person may access each account.
Que 4: When are withdrawals from an EPF taxed?
Answer: Before five years of continuous employment, an EPF withdrawal is taxed.
Que 5: How can I show a withdrawal from my EPF on my ITR?
Answer: EPF withdrawals made by the employee should be included under "Income from Salary" because they are seen as income by the employee. When filing your ITR, you can disclose any withdrawals from your EPF account by navigating to the portal and selecting "Section 10(12) Recognized Provident Fund."
Que 6: How much tax is assessed on EPF withdrawals?
Answer: If your PAN has been filed, a 10% TDS is applied at the time of withdrawal. If not, when the EPF is withdrawn, a TDS of 34% will be charged.
Que 7: What is the EPF withdrawal enquiry number?
Answer: Call 1800 118 005 to inquire about PF withdrawal.
Que 8: How is it possible to withdraw EPF without the company's permission?
Answer: You do not require the approval or authorization of your employer to withdraw your PF if you have given the PF office your Aadhaar number.
Que 9: How often is it possible to withdraw EPF?
Answer: The employee's entire share or six times their wage, whichever is smaller, is the highest that can be taken away. There is a three-time limit on the number of times you can withdraw for the same reason.
Que 10: How can I find out the current standing of the online claim I made?
Answer: You can view the most recent status of a claim by clicking the "Views the status of transfer claims" link under the tab "CLAIM."
Que 11: Can EPF be withdrawn at any time?
Answer: EPF cannot ever be removed, therefore no. A variety of requirements, such as the account holder's age, the reason for the withdrawal, and the duration of employment, must be met in order to be eligible for PF withdrawal.
Que 12: Can I alter data that is saved in the EPFO database, such as my father's name, birthdate, and joining and departing dates?
Answer: The father's name, DOB, joining and departing dates, as well as other data that is stored in the EPFO database, cannot be modified.
Que 13: While employed, EPF withdrawal is feasible?
Answer: While employed, you cannot take money from your PF account. You must have been jobless for at least two months before you can apply for a partial withdrawal of your PF corpus.
You may, however, request a partial withdrawal of your EPF in certain situations, such as a medical emergency involving the account holder or a family member, a child's or your own wedding, or the purchase or construction of a home.
Que 14: Do I have to print off my submitted claim, sign it, and provide it to my employer?
Answer: Yes, you must print off the submitted claim after signing it and give it to the employer.
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We've arrived at the last section of this guide. Let's have a look at some of the most important points to remember:
- A provident fund (PF) is a type of retirement savings fund that is set up by an employer and funded by both the employer and the employee. The money contributed to the fund is used to provide benefits such as a lump-sum payment at retirement, disability benefits, or death benefits.
- The employee's PF receives contributions from both the employer and the employee, and interest is earned until it is withdrawn. Additionally, switching employment for a variety of reasons, with or without a break, is rather common, especially early on or in the middle of a career.
- The employee is required to submit this form in order to transfer the data regarding the prior PF balance to the new account. This is required if a member from one establishment relocates to or joins another establishment protected by the EPF Scheme.
- The EPF account may be transferred from one employer to another. A Universal Account Number (UAN), a unique member identification number that may be used to find your EPF Account, is provided to you when you join the EPF.
- UAN offers a number of services, such as a dynamically updated UAN card, an updated PF passbook with all transfer-in information, the capability to link previous members' ID with the present ID, monthly SMS updates on the credit of contributions to PF accounts, and the capacity to automatically initiate transfer requests upon changing jobs.
- PF withdrawals are subject to TDS if the account has been open for fewer than five years. If you transfer your PF account and maintain it open for five years, you can withdraw your money without paying taxes on it.