Provident Fund:

The Employers Provident Fund Organization has promised that Provident Fund accounts will become portable from this October. It is advised to transfer your PF balance to the new employer instead of withdrawing the amount till this new promise comes into practice. Also if you withdraw your PF balance before five years of continuous service, you will lose the tax benefit availed in previous years. You might lose a large chunk of interest earned on your balance as that amount will be taxed as normal income in the year of withdrawal.

Leave travel allowance:

According to the rules of Leave Travel Allowance (LTA), travel expenses for you and your family can be claimed for two return journeys in a period of four years. This implies that tax exemption can be claimed only twice, irrespective of the number of companies you were employed to within those four years. So, you can carry forward unused LTA from your previous employer to the next within the same block time, provided you possess the proof of travel for LTA.

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