How to Merge Two PF Accounts with Different UANs and Handle Withdrawals
If you have worked with two companies from 2018 to 2022 and then from 2022 to 2025, and both employers opened separate provident fund (PF) accounts with different universal account numbers (UANs), you might be facing a common administrative challenge. This situation often arises when employees switch jobs, and each new employer initiates a fresh PF account without linking it to the previous one. Now, with your current organization not offering PF benefits, you cannot transfer your previous PF accounts directly, leaving you wondering how to merge the two accounts or withdraw funds.
Merging Two UANs: EPFO Guidelines and Process
According to the official handbook on the Employee Provident Fund Organisation (EPFO) website, when two UANs are allotted to an individual, the latest UAN linked to the most recent employer should be retained, while the older one from the first employment must be merged. To facilitate this transfer, you need to file Form 13 online through the unified member portal. However, before proceeding, it is crucial to update your KYC details on your latest or active UAN to ensure a smooth process.
Additionally, the EPFO recommends reporting the issue to your previous employers and directly to EPFO via email at uanepf@epfindia.gov.in. In your communication, clearly mention both UANs involved. After thorough verification by the authorities, the previously allotted UAN will be blocked, and the second UAN will remain active as your primary account. This step is essential to consolidate your PF savings and avoid future complications.
Eligibility for PF Withdrawal and Tax Implications
Regarding the withdrawal of the accumulated balance from your first PF account, you are eligible to apply if you have not been employed with an establishment covered under the EPF Act for a continuous period of two months. Since your current organization does not provide EPF coverage, you meet this criterion and can proceed with the withdrawal, subject to completing two months from your last employment.
When it comes to taxability, the provisions of the Income-tax Act, 1961, state that PF withdrawal is tax-free if the employee has completed five years or more of continuous service with the employer. If you transfer your earlier PF balance to a subsequent employer's PF account, the employment period with the previous employer is also counted towards this five-year threshold.
In your specific case, with a continuous service record of 7 years and 5 months, if you withdraw from the first account without transferring the balance to the second PF account, it may become taxable if your service tenure with the first employer alone does not meet the five-year criteria. However, if you transfer the balance from the first account to the second and then withdraw from the second account, the combined service period from both previous employers will be considered. Since this exceeds five years, such a withdrawal would be non-taxable.
It is important to note that any interest accrued on the PF balances during non-contributory periods may still be subject to taxation, so careful planning is advised.
Key Steps to Resolve Your PF Account Issues
- Update KYC on your latest UAN to enable online transactions.
- File Form 13 online to transfer the PF balance to your active UAN.
- Report the dual UAN issue to previous employers and EPFO via email for verification and blocking of the older UAN.
- Consider transferring balances between accounts to maximize tax benefits based on your continuous service period.
- Consult with a financial expert if unsure about tax implications or procedural details.
By following these guidelines, you can effectively manage your PF accounts, ensure compliance with EPFO regulations, and optimize your financial outcomes when dealing with multiple UANs and withdrawal scenarios.
