No course of but to shift PF steadiness to NPS a/c

I joined a college (the place worker provident fund—EPF—deduction was being made) as college in January 2012 and labored there repeatedly for a interval of three-and-a-half-years. In June 2015, as a result of non-fulfilment of sure instructional standards necessities, my employer eliminated me from providers. However, the identical employer recruited me again inside 20 days of termination of providers i.e., in June 2015 itself, on an advert hoc foundation for a one-year interval until June 2016. I left the establishment after the contract expired and, 4 months later, in November 2016, I rejoined the varsity and labored there repeatedly until March 2018. The identical month, I joined one other employer (the place I’ve been repeatedly employed since), who didn’t have EPF, however had nationwide pension system (NPS) in place. I’ve not withdrawn my EPF steadiness but. Please advise on the taxability of the identical if I withdraw it now. Also, is it attainable to get the quantity transferred to my NPS account? If so, please specify the process. — Rohit M. We have assumed that you just contributed to provident fund (PF) throughout all three employment phrases with the varsity referred by you. From a tax perspective, as per Section 10(12) learn with Rule 8 of Part A of Fourth Schedule of the Income-Tax Act, 1961 (the Act), the accrued provident fund steadiness due and payable to the worker i.e., steadiness to his credit score on the date of cessation of his employment, is exempt from tax if he has rendered steady service for a interval of 5 years or extra. Where there are a number of provident fund accounts and the provident fund balances are transferred to the latest provident fund account, the cumulative interval of employment pertaining to all such provident fund accounts is required to be seen for the aim of evaluating whether or not the worker has rendered steady service for a interval of 5 years or extra. In the current case, if the steadiness within the earlier provident fund accounts is transferred to the final provident fund account held by you, the cumulative interval of employment shall be thought of as greater than 5 years (roughly 5 years and 5 months) and, accordingly, the accrued steadiness to the extent payable to you on the time of ceasing employment, shall be exempt from tax. However, please be aware that any accretions to the provident fund steadiness for the durations that you just have been on a break from employment and any accretions to the provident fund steadiness from the time that you just had ceased employment (i.e., after the final day of working with the earlier employer until the date of withdrawal), could be taxable in your arms. Separately, with respect to the switch of provident fund steadiness into an NPS account, it could be famous that whereas the revenue tax provisions do specify the tax remedy on such switch, no course of has but been prescribed beneath the PF Act with respect to such switch. Parizad Sirwalla is associate and head, international mobility providers, tax, KPMG in India. Queries and views at [email protected] Subscribe to Mint Newsletters * Enter a sound e mail * Thank you for subscribing to our publication.