The merger will be done in the same UAN mapped with the current EPF account
I have served three employers (including my current one) since 2015 with no gap in employment. Recently, I transferred my provident fund (PF) corpus from employer 1 to 2 and then from employer 2 to 3.
Can I claim advance withdrawal? Will the Employees’ Provident Fund Organisation consider the total length of employment as five years as the first contribution was done in 2015 by employer 1? Do they calculate/include the length of employment for all previous employers? Do they consider the age of UAN (Universal Account Number) creation?
Your total period of service will be considered for computing the continuous period of service. In your case, as there is no break in employment across multiple employers and it exceeds the required employed period of five years, your PF corpus is considered as tax-free, and you can withdraw the money subject to the conditions and purpose defined by the PF Act.
I have two different passbooks under one UAN. Will the interest on the previous passbook become taxable since I have switched to a different company? Also, am I missing the chance to earn more compound interest since I haven’t merged both accounts?
You need to ensure that you merge the previous EPF account with the new account. This merger will be done in the same UAN mapped with the current EPF account.
This is to be done while you are in active employment. As in if you redeem the first EPF and your continuous period of service is less than five years then the said amount will be taxable. And once you merge, the previous EPF will be included for the purpose of continuous service and total service of five years to determine the taxation i.e., if combined service exceeds five years, then the proceeds are exempt from tax.
