Big update on EPFO Rules! Do this EPF account-related tasks as soon as you change jobs; else, you risk suffering a significant loss

 Big update on EPFO Rules! Do this EPF account-related tasks as soon as you change jobs; else, you risk suffering a significant loss

Big update on EPFO Rules! Do this EPF account-related tasks as soon as you change jobs; else, you risk suffering a significant loss

EPFO Regulations: Remember to combine your EPF accounts if you plan to change jobs. You could have to endure a significant loss if you do this.

How to connect all provident fund accounts: People who work in private employment often move around and take on different roles. Many individuals have the false impression that when they join a new organization, their new PF account would be instantly connected because of their previous UAN number. This is untrue. The worker in this case has to visit the EPFO website to connect his new PF account to his UAN. You could have to endure loss if you do this incorrectly.

The drawbacks of disconnecting an account

Financial experts state that you won't be able to see the money in the old account together if you don't integrate the new and old EPF accounts. From a tax savings perspective, this is also seen to be crucial. In actuality, you are not required to pay tax on funds withdrawn from your EPF account after five years of continuous deposits; but, you are required to pay tax on funds withdrawn prior to that time.

Every company will have a distinct TDS.

You must pay TDS for each firm individually if you choose not to combine all of your EPF accounts. For instance, if you work for two different firms for three years each, your total experience will be considered as six years when the accounts of the two companies are merged. In contrast, your experience will be counted separately by three to three years if you don't do this.

Procedure for merging accounts

Click the EPFO portal at https://unifiedportal-mem.epfindia.gov.in to combine all of your EPFO accounts.

Next, under the Online Services section, choose "One Member - One EPF Account (Transfer Request)".

After doing this, provide your personal information and the employer's data to validate your account.

Once you've completed this, clicking Get Details will cause the list of previous employers to appear.

Select the account you want to move.

"Get OTP" will be typed as a result. You will get an OTP on your registered cellphone number as soon as you click on it. Write this and turn it in.

We'll submit your request as soon as this procedure is finished. Your present employer will then have to approve it. Following that, EPFO will combine your previous and current accounts.