[ecis2016.org] This guide would help you understand the process of PF withdrawal and the terms and conditions an EPFO subscriber should know for EPF withdrawal.
PF withdrawal or EPF withdrawal is possible if you have been contributing to the government-managed retirement saving schemes run by the EPFO (Employees’ Provident Fund Organisation). This guide would help you understand the process of PF withdrawal, EPF withdrawal online as well as offline, while also explaining the terms and conditions an EPFO subscriber should know, for PF withdrawal.
You are reading: PF withdrawal: Everything you want to know about EPF withdrawal
[ecis2016.org] All about PF balance check with UAN number. Also know all about EPF passbook in this guide.
PF withdrawal online
On the EPFO website, you can apply for EPF withdrawal without any approval from your employer. You can also check your PF claim status on the website. This is possible, only if your UAN and Aadhaar are linked and your UAN has been activated.
Check out this guide on UAN login process to understand how to activate your UAN.
PF withdrawal online: Step-wise process
Step 1: Go to the official EPFO member portal.
Step 2: From the top left side, select ‘Service’ and select ‘For Employees’ from the drop-down menu.
Step 3: Select the ‘Member UAN/Online Services (OCS/OTCP)’ option.
Step 4: You will be redirected to a new page, where you will be asked to provide your UAN, password and Captcha details before you proceed.
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Step 5: On your home account, go to ‘Manage’ on the top left, and select ‘KYC’ from the drop-down menu.
Step 6: A new page would appear. Ensure your KYC details are correct as it also has your account details, where the PF withdrawal money would be credited by the EPFO.
Step 7: After making sure your KYC details are correct, go to the ‘Online Service’ tab. Click on ‘Claim (Form-31, 19 & 10C)’ from the drop-down menu.
Step 8: A new page would open, showing all your details, asking you to verify your bank account number, where the EPF withdrawal money would be credited.
Step 9: After the verification of the bank account, a ‘Certificate of Undertaking’ would be generated. Click ‘Yes’ on the certificate to proceed.
Step 10: Click on ‘Proceed for Online Claim’.
Step 11: On the claim form, under ‘I Want To Apply For’ option, select the claim you want – complete EPF settlements, EPF part withdrawal (loan/advance) or pension withdrawal. If you are not eligible for any of these services, these options would not be shown in the drop-down menu.
Step 12: Select ‘PF Advance (Form 31)’ to withdraw your PF. Also provide the purpose of such advance, the amount required and your address. Check the box asking you for self-declaration.
Step 13: Your application for PF withdrawal is now submitted. Your EPF withdrawal application should be approved by the employer to get processed.
EPF withdrawal: Rules in 2022
PF withdrawal time
Your PF account is not like a regular savings account. The money saved is meant to be used after retirement. Hence, PF withdrawal is not possible while you are still working. Your PF amount can be withdrawn, post-retirement.
Full PF withdrawal
Full PF withdrawal is possible when you reach the retirement age of 58 years. Even if you are retiring early, you need to be at least 55 years of age to be able to withdraw the full PF.
Full PF withdrawal is also possible, if you have been out of work for two months or more. In the latter case, the employee will have to declare ‘unemployed’ in his PF withdrawal request form.
Partial PF withdrawals in emergency
You can withdraw your PF amount in parts, in case of an emergency. The limit for partial withdrawal depends on the reason for withdrawal. To be eligible for partial withdrawal, the member would need to meet a minimum service limit.
PF withdrawal: Reasons that validate EPF withdrawal while you are still in service
- To pursue higher education
- Medical treatment
- House construction or purchase
- House repairs
- Home loan repayment
- Unemployment for over 60 days or two months
- Shifting abroad
- Leaving job due to pregnancy or childbirth
Conditions for advance PF withdrawal
Those who fulfil the following conditions can withdraw money from their PF account before retirement:
- You can withdraw money from your PF account, to arrange for a marriage. You can do so thrice in your career.
- You can withdraw money from your PF account to fund your education after matriculation. In this case too, you can withdraw it thrice.
- You can withdraw money to buy a plot, build a house or purchase a house only once.
- You can withdraw advance PF money for treating critical illness. There is no limit on the number of withdrawals.
PF withdrawal when an individual loses his/her job
Those who lose their jobs can withdraw up to 75% of their accumulated corpus form their PF accounts a month after their termination. If one remains unemployed for two months, he/she can withdraw the remaining 25%.
PF withdrawal limit
PF account holders can withdraw money that is equivalent to either three months of their basic salary with dearness allowance, or 75% of the net balance in their PF accounts, whichever is lower. Suppose your three month’s salary plus dearness allowance is Rs 2 lakhs while the net balance in your PF account is Rs 3 lakhs. You will be able to withdraw only Rs 2 lakhs from your PF account as 75% of Rs 3 lakhs is equal to Rs 2.25 lakhs.
PF partial withdrawal limit chart
|EPF withdrawal reason
|EPF withdrawal limit
|House purchase/ plot purchase/ house construction
| *24 months’ basic salary plus dearness allowance of the employee or the actual price of the plot, whichever is lower, in case of plot purchase
**36 months’ basic salary plus DA or the actual price of the land or amount required for construction, whichever is lower, in case of house construction.
***in either case, PF withdrawal limit cannot be more than 90% of the PF balance.
|PF account holders and their spouses or joint.
|Home loan repayment
|90% of PF balance.
|PF account holders and their spouses or joint.
|Home renovation and repairs
|12 months’ basic salary plus DA.
|PF account holders and their spouses or joint.
|50% of the employee’s contribution with interest.
|PF account holders, their children and siblings.
|Employee’s share along with interest or six times the monthly salary, whichever is lower.
|PF account holder, his spouse, his parents and his children.
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Tax on PF withdrawal
PF withdrawal is not subjected to any tax deduction in case your EPF withdrawal is taking place after five years of service. If PF withdrawal takes place before five years of service, 10% TDS (Tax Deducted at Source) will be deducted from your PF balance. Even in this case, if the EPF withdrawal is up to Rs 50,000, there will be no tax applicability.
However, a much higher rate of 30% TDS will be applicable, if your PAN details are not provided at the time of PF withdrawal.
Note that EPF withdrawal due to job loss and unemployment due to illness are also tax-free. Similarly, in case your EPF withdrawal money is shifted towards the National Pension Scheme (NPS), the PF withdrawal will not be taxed.
If your entire income including the EPF withdrawal is not taxable, you will have to state so in your self-declaration using Form G/Form 15H5.
EPF withdrawal: How much time does it take for the money to arrive in your account?
It may take between three to four weeks for your PF withdrawal request to be processed. This means your PF amount would reach your account between 20-30 days.
EPF withdrawal: Offline process
Download the new Composite Claim Form-Aadhaar or Composite Claim Form for non-Aadhaar, for EPF withdrawal offline.
EPF withdrawal with Composite Claim Form-Aadhaar
Use the Composite Claim Form-Aadhaar, if your Aadhaar number and bank account are linked with your activated UAN. Fill and submit the form to the respective jurisdictional EPFO office, without the employer’s attestation.
EPF withdrawal using Composite Claim Form non-Aadhaar
Use the Composite Claim Form non-Aadhaar, if your Aadhaar number is not linked on the UAN portal. Fill and submit the form with the employer’s attestation to the respective jurisdictional EPFO office.
Note that employees, who have not seeded their Aadhaar details with their UAN, have to submit the Composite Claims Form with their employer’s attestation for PF withdrawals.
In case of partial EPF withdrawal, the requirement to furnish certificates is done away with. You now have the option of self-certification.
PF withdrawal without UAN
If your UAN is not activated, you will have to fill the applicable PF withdrawal form and submit it at the regional provident fund office, in person. Along with your PF withdrawal form, you will have to submit your identity card attested from a bank manager or a gazette officer.
Types of EPF withdrawals
There are three different types of PF withdrawals:
- PF final settlement
- PF partial withdrawal
- Pension withdrawal benefit
For different EPF withdrawals, different PF withdrawal forms are used, these include:
EPF Form 19: EPF Form 19 is used for full PF withdrawal, or to avail of an advance from the EPF account.
EPF Form 31: EPF Form 31 is used for partial PF withdrawal or to avail of an advance from the EPF account.
EPF Form 10C: EPF Form 10C is meant for withdrawal or transfer of your Employee Pension Scheme balance.
The Composite Forms have now replaced these different forms.
Documents/details needed for PF withdrawal
You will need the following details to initiate PF withdrawal:
- Universal Account Number or UAN.
- Bank account details of the PF holder. (PF money is not transferred to the third party until the PF holder’s demise.)
- Employer’s submission of employee’s exit from the company.
In case you have any complaint about EPF withdrawal, you can visit the EPF grievance management system online and lodge a complaint. Here, you can file a grievance, send a reminder and check the status of your complaint.
Read our guide on EPF grievance to know how to lodge a complaint via EPFiGMS.
What is UAN?
UAN or Universal Account Number is a unique 12-digit account number assigned to every person, who is making contributions to their Employees’ Provident Fund (EPF) account.
What is PF stands for?
PF is the short for Provident Fund.
What is the full form of EPF?
EPF is the short for Employees’ Provident Fund.
Who manages PF in India?
The Employees’ Provident Fund Organisation (EPFO) regulates and manages PF in India.
Why can’t I withdraw my EPF balance while working?
EPF members are not allowed to withdraw their PF amount while working, because this fund is meant for their post-retirement needs.
What is the age at which I can withdraw my full PF balance?
You can withdraw your full PF balance at the age of 58.
Is it necessary to provide PAN details at the time of PF withdrawal?
Yes, it is a must to provide PAN details at the time of PF withdrawal. In case you fail to do so, 30% TDS or more might be deducted from your PF amount. With PAN, the rate of TDS will be 10%.
Can I refund the money I withdrew from my PF account?
No, the money you withdrew from your PF is non-refundable.
Can I make EPF withdrawal without logging on to the EPFO portal?
You can claim your EPF balance without logging on to the EPFO portal. For this, download a Composite Claim Form, fill it, and submit it at the regional EPFO office.
Are PF contributions eligible for tax deductions?
PF contributions are tax deductible under Section 80C of the Income Tax Act.
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