Merging and Withdrawing from Multiple PF Accounts in India

With the growing complexity of employment in India, an individual might find themselves managing two PF (Provident Fund) accounts under the same UAN (Unique Account Number) due to changes in employers. This article will guide you on how to handle such a situation and provide you with the necessary steps to either merge your PF accounts or withdraw from them.

Understanding PF Accounts and UAN

PF stands for Provident Fund, a retirement savings scheme in India. Every working individual has a UAN number, which acts as a unique identification for their PF account. Even if you have multiple PF accounts under the same UAN number, they are connected and will be managed through the same UAN.

Conditions for Withdrawal

One of the primary questions that often arises is whether it is possible to withdraw from both PF accounts if you are employed. The answer is no. As long as you are employed, you cannot withdraw from any of your PF accounts. However, if you are no longer employed, you can follow certain procedures to either merge your PF accounts or withdraw from one of them.

Merging PF Accounts

Merging your two PF accounts into one is a common solution. To do this, you need to submit a transfer request to your current employer. This request will be processed online and should take just 10 days. Once the transfer is complete, you can then proceed to withdraw the entire amount from the merged PF account.

Withdrawing from Both Accounts

Alternately, you can withdraw from both accounts as per the requirements and time limits. However, this process is more complex and requires compliance with specific procedures. It is also important to note that tax implications may apply, depending on the amount and duration of your PF contributions.

Steps to Withdraw PF

Update KYC and Request Employer Approval: Ensure that your KYC details are updated for both UAN numbers. Obtain the approval of your previous employer for a transfer of funds. Also, update the exit date in the 'Manage Mark Exit/Resigned Date' section, which will reflect your last subscription period. Update Your Withdrawal Information: Choose the 'One member one EPF account' option in the online service. Update your previous UAN and member ID. Click 'Get Details' and verify your OTP with Aadhar. Secure Transfer Request: Your transfer request will be updated in the portal. Once your previous employer approves the request, it will be further approved by EPFO and transferred to your present EPF account. Initiate Withdrawal: After the funds are transferred to your present EPF account, you can initiate the withdrawal process online through the EPFO member portal or UMANG app. Provide your UAN number, KYC details, bank account details, and the details of the PF account from which you wish to withdraw. Tax implications may apply.

It is advisable to consult the relevant provisions and ensure compliance with all regulatory procedures to avoid any complications. If you face any issues, reaching out to your employer or the relevant PF authority can provide further assistance.

Conclusion

Managing multiple PF accounts can be challenging, but with the right procedures and steps, you can either merge your accounts or withdraw from them effectively. Understanding the process and ensuring all necessary formalities are completed will help you navigate this situation smoothly.