PF rules: If this work is not done immediately after changing the company, then there will be a huge loss!

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Bengaluru : There are many people who change jobs every 2-3 years for higher salary and better opportunities. But in the hurry of increased salary, the necessary work is not being taken care of. Due to this, heavy taxation may also have to be faced. We are talking about merger of provident fund accounts. Merging PF account after changing jobs is a very important process.

Provident Fund:
Provident Fund There is a mandatory retirement savings program run by the government. This scheme is implemented in many countries. Under this, both the employee and the employer have to deposit a fixed amount. This scheme is operated with the objective of providing financial assistance to the employee after reaching the age of retirement. The main objective of this scheme is to provide a stable source of income even after retirement.

pf account :
when you start work EPFO to UAN will get . Your employer will open a PF account under this UAN. In this you and your company will have to put a fixed amount every month. When you change jobs, you give your UAN to the new employer. After that he opens another PF account under the same UAN. With this, your new employer’s PF contribution will be credited to this new account. Then it is very important to merge the old PF account with the new PF account with the new job.

Withdrawal of PF:
Due to certain reasons, there is a possibility of withdrawal of the amount deposited in the PF account. So as per the government rules, if your tenure with the company is less than five years and the total amount deposited in your PF account is less than Rs 50,000, then no tax is payable on the withdrawal. But if this amount exceeds Rs 50,000, then 10% TDS will be deducted. Now even if you have completed five years of service, there will be no tax on withdrawing your PF money.

Merging of PF Accounts:
UAN will add all your amount when PF accounts are merged. On the other hand, if there is no merger of PF accounts, then the fund of each company is different. From which TDS is deducted while withdrawing money.