[cat=chimera]

Originally Posted by lakshmansutrave

dude, if the person is terminated only his contribution will remain in PF account. He is not eligibel to get the company's contribution.

@Lakshman : I have not been terminated :( I have resigned . My doubt was that will I get the full amount or will there be a large chunk that will be deducted as some tax etc..

[lakshmansutrave]

No. PF is earned on monthly basis does not depend on your work experience. Dont worry, You will not loose even a pie.

[sharang]

Puys,
I'll share wid u my experience...
Am workin in a top IT co., 2 yrs bond, 2 lacs is the amount...
Now many ppl do break the bond, but usually the co. doesnt charge them, however they will not give u a relieving letter, and also ur status in the co. wud be absconding...
So if later on anodr employer of urs wants to have a BGC(background check, a must in IT cos.) and ur status is absconding, ur in a soup...
My 2 yr bond ends on 13th july 2008, but my session in scmhrd is starting on 1st june...so i spoke to my DM, who said i'd nt be relieved....then i spoke to my DU head, who said that they won't ask for the amt fr such a short period(1.5 to 2 months) and wud relieve me....he also told me to speak to the HR abt it...i did and my DU head has made sure that i wud be relieved...
Even if he doesn't do, i will leave the co. wid my payslips, and if the clg requires relieving letr, i wil get it made somehow...:sly:
as i am not coming bck to IT, thrz less chances of a BGC in my case...so i can take the chance
I wuz suggest u guys to speak to the highest authority that u can reach to in ur organisation, and they wud understand...
P.S.- this is only for those who are goin fr higher studies...if ur breakin the bond to join anodr job, they wont relieve you...i had to show 3-4 proofs of my selection in the clg

[pradeep.mats]

I work with one of major IT Firms in India. I have a 2 year 2 lac bond. I talked with my HR regd the same and was taken to the legal team for the same. The legal team told me that as per company policy if somebody leaves in the last 3 months the ammount needed to pay for the separation is 50,000 else the ammount goes beyond 2 lacs.

My bond comes to completion on 9 Oct hence was adviced by the legal team to serve till 9 July. My NMIMS Session starts on 1 July so would be working upto 30 June and would be taking LOP(Loss of Pay) for the next 10 days.

By breaking the bond legally I get a relieve letter which If you do not possess might cause problems in BackGround Check as mentioned by sharang.

P.S- Try to get a relieve letter from your company. Payslips as proof of experience may cause troubles further in your career.

[coolashu]

Even i am in a similar situation ... has anyone spoken to MBA passout guys ,regarding whether salary slips as a proof is OK for selection into another company ?

can't mess up with my career doing this (breaking a bond and leaving soon after the salary on 1st June) but seems gotta take this risk....

I wont pay one lac for 1 month of left over bond period... no way.

looking for someone who has experienced this dillemma to post his experience .

[konqueror_vivek]

Originally Posted by coolashu

Even i am in a similar situation ... has anyone spoken to MBA passout guys ,regarding whether salary slips as a proof is OK for selection into another company ?

can't mess up with my career doing this (breaking a bond and leaving soon after the salary on 1st June) but seems gotta take this risk....

I wont pay one lac for 1 month of left over bond period... no way.

looking for someone who has experienced this dillemma to post his experience .

I guess many companies have out-sourced background check, and you might face an uncomfortable situation, when the Company (which you have left) will state your absonding status to the Company you join. In case you have made up your mind to leave your present company, in my opinion you might go for some better company of your choice, as a fresher. ATB

[Tumtum]

Originally Posted by lakshmansutrave

No. PF is earned on monthly basis does not depend on your work experience. Dont worry, You will not loose even a pie.

I beg to differ my friend.

If you withdraw money before 5 years from the date when the company opened your PF account, then you will be taxed at a flat rate of 30% on the money that has accumulated in the PF account.

If you withdraw after 5 years, then it will be tax free.

Please verify this with a tax consultant.

Regards,

Tumtum.

[ajesh_singh]

I’m working in a MNC in Noida. I have a 2 year bond which would be ending on 21st August 2008. At the time of signing the bond, we were given verbal assurance that if you are going for higher studies; your bond money would be waived off. But now when the time has come, they are backing out. The HR people are asking 2 pay the bond money i.e 1.5 lacs [:O] which take my SIMS fees effectively to 5 lacs [L]. If we don’t pay the bond money; we won’t be getting the work experience & the relieving letter plus some 50k of Provident Fund money.
Do we really need work experience & the relieving letter at the time of placement or can I do with Appointment Letter and my last salary slip?
What do you people think? Please give your suggestions on what I should do?

[smartwhacko]

Hey guys....

In my company, the company itself manages the PF a/c and is not centralized with the govt PF. My ques are -

1. As stated before, if i dont complete 5 years then will the PF be eligible for taxes?

2. If it is eligible for taxes, then will TDS be deducted at source while re-imburing the same?

3. Is there any way i can transfer this to my govt established PF a/c?I am quitting to join MBA course @ NMIMS Sectoral.

Lemme know, if u guys have any info on these regards?

[Tumtum]

Originally Posted by smartwhacko

Hey guys....

In my company, the company itself manages the PF a/c and is not centralized with the govt PF. My ques are -

1. As stated before, if i dont complete 5 years then will the PF be eligible for taxes?

2. If it is eligible for taxes, then will TDS be deducted at source while re-imburing the same?

3. Is there any way i can transfer this to my govt established PF a/c?I am quitting to join MBA course @ NMIMS Sectoral.

Lemme know, if u guys have any info on these regards?

SmartWhacko.

There are 2 kinds of PF schemes...

1) Employees Provident Fund (EPF)
2) Public Provident Fund (PPF)

Let me expalin both of these step-by-step...

1) EPF: In case of EPF, your company will deduct 12.5% of your BASIC salary and mark it as a contribution to PF fund. When a company does this, it will have to shell out an equal amount of money towards your EPF account every month.

I will give you an example to explain the concept better.

Let us assume that Mr A's BASIC salary is INR 10,000 per month. 12.5% of INR 10,000 works out to be INR 1,250. Thus, an amount of INR 1,250 will be deducted from your gross salary and you can see this every month in your salary statement. Now once a company deducts INR1,250 from your basic, then it will have to deposit this money in your EPF account. Additionally, it will also have to deposit another INR 1,250 from its own pocket into your EPF account.
Thus every month, your EPF account will be credited with INR 2,400- INR1,200 from your pocket and INR1,200 from the company's pocket.

Now if you withdraw money from this EPF account before 5 years of its inception, then you will be charged tax at a flat rate of 30% on the total amount of fund in your EPF account.

2) PPF: PPF is an account that is opened by an individual with the government run provident fund scheme and a person can contribute any amount to the fund account subject to a maximum limit of INR70,000 per year (folks correct me if Im wrong about the investment ceiling of INR 70,000).

Contribution to this fund carries a lock-up of 15 years. Meaning that once you begin parking money into PPF, then you cannot withdraw the money before 15 years.

But whatever interest you get on this money is non-taxable and the entire amount that you will withdraw after 15 years will be tax free.

Hope this clarifies your query and tells you that no intra fund transfers are viable because you are likely to be taxed if you withdraw money from EPF.

Feel free to ask for more.

Regards,

Tumtum.