How to Withdraw Your Provident Fund (PF) Amount Online in India: The Ultimate Guide

#EPFWithdrawal, #EmployeesProvidentFund, #TaxationofEPF, #PFPartialWithdrawal, #PFFinalSettlement

Are you nearing your retirement or facing a financial emergency? If yes, then you might be wondering how to withdraw the hard-earned money from your Employees’ Provident Fund (EPF) account. As you know the EPF is a mandatory savings scheme that provides a safety net for employees during their golden years or unforeseen circumstances. However, going through the withdrawal process can be a daunting task, with numerous rules, forms, and procedures to follow.

In this complete guide, we’ll explain you the whole process of withdrawing your PF amount, we will be covering everything from eligibility criteria to step-by-step instructions for online and offline applications. Whether you’re looking for a complete withdrawal or a partial one, we’ve got you covered with expert insights, real- world examples, and actionable tips to ensure a smooth and hassle-free experience.

What is the Employees’ Provident Fund (EPF)?

Before we start with the withdrawal process, let’s briefly understand what the Employees’ Provident Fund (EPF) is. Established under the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952, the EPF is a mandatory savings scheme for employees working in eligible organizations.

Here’s how it works:

  • Employees contribute 12% of their basic salary to the EPF every month.
  • Employers contribute an equal amount (12% of the employee’s basic salary) to the employee’s EPF account.
  • The accumulated balance in the EPF account earns interest annually, providing a corpus for employees upon retirement or during financial emergencies.

The EPF serves as a safety net, ensuring that employees have a source of income after retirement or during times of need.

When Can You Withdraw Your EPF?

While the primary purpose of the EPF is to provide a retirement corpus, there are certain circumstances under which you can withdraw the accumulated balance, either partially or completely.

Complete Withdrawal:

You can withdraw the entire EPF balance under the following two scenarios:

  1. Retirement: Upon reaching the retirement age, you can claim the complete withdrawal of your EPF corpus.
  2. Unemployment: If you are unemployed for more than two consecutive months, you can withdraw 75% of the accumulated balance after the first month and the remaining 25% after the second month of unemployment.

Partial Withdrawal:

The EPF scheme allows partial withdrawals under specific circumstances, such as medical emergencies, marriage, education, home purchase or construction, and loan repayment. The eligibility criteria and withdrawal limits vary depending on the reason for withdrawal.

Here are the circumstances under which you can make a partial withdrawal:

  • Medical purposes: No minimum service requirement. Withdrawal limit is the lower of six times the monthly basic salary or the total employee’s share plus interest.
  • Marriage: Minimum 7 years of service. Withdrawal limit is up to 50% of the employee’s share of contribution plus interest.
  • Education: Minimum 7 years of service. Withdrawal limit is up to 50% of the employee’s share of contribution plus interest.
  • Purchase of site, flat, or house construction: Minimum 5 years of service. Withdrawal limit is the lower of 24/36 months’ basic wages plus dearness allowance or the total corpus (employer’s and employee’s contribution plus interest) or the actual cost.
  • Home, site, or flat purchase/construction loan repayment: Minimum 10 years of service. Withdrawal limit is the least of 36 months’ basic wages plus dearness allowance, the total corpus, or the outstanding principal and interest on the housing loan.
  • House renovation: Minimum 5 years of service. Withdrawal limit is the least of 12 months’ basic wages plus dearness allowance, the employee’s contribution plus interest, or the total cost.
  • Partial withdrawal before retirement: Available when the employee reaches 54 years of age, up to one year before retirement. Withdrawal limit is up to 90% of the accumulated balance plus interest.

It’s important to note that the eligibility criteria and withdrawal limits are subject to change, so it’s always advisable to check the latest guidelines issued by the Employees’ Provident Fund Organisation (EPFO).

How to Withdraw PF Amount?

Now that you understand the circumstances under which you can withdraw your EPF, let’s explore the two methods to initiate the withdrawal process: physical application and online application.

Physical Application:

If you prefer the traditional method or do not have access to the online portal, you can submit a physical application for EPF withdrawal.

  1. Composite Claim Form (Aadhaar): If you have seeded your Aadhaar and bank details on the Universal Account Number (UAN) portal and your UAN is activated, you can use the Composite Claim Form (Aadhaar). Fill out the form and submit it to the respective jurisdictional EPFO office without the employer’s attestation.
  2. Composite Claim Form (Non-Aadhaar): If your Aadhaar and bank details are not seeded on the UAN portal, you can use the Composite Claim Form (Non-Aadhaar). Fill out the form, get it attested by your employer, and submit it to the respective jurisdictional EPFO office.

Online Application:

The EPFO has introduced an online withdrawal facility, making the process more convenient and time-efficient. Here’s how you can apply for EPF withdrawal online:

Prerequisites:

  • Your Universal Account Number (UAN) is activated, and the mobile number used for activation is in working condition.
  • Your UAN is linked with your KYC (Aadhaar, PAN, bank details, and IFSC code).

Step-by-Step Process:

  1. Visit the UAN portal (unifiedportal.epfindia.gov.in) and log in with your UAN and password.
  2. Click on the ‘Manage’ tab and select ‘KYC’ to ensure your KYC details (Aadhaar, PAN, and bank details) are verified.
  3. Once verified, go to the ‘Online Services’ tab and select ‘Claim (Form-31, 19, 10C & 10D)’ from the drop-down menu.
  4. Enter your bank account number and click on ‘Verify.’
  5. Sign the ‘Certificate of Undertaking’ by clicking ‘Yes,’ and proceed.
  6. Click on ‘Proceed for Online Claim.’
  7. Select the claim you require (full EPF settlement, EPF part withdrawal, or pension withdrawal) under the ‘I Want To Apply For’ tab.
  8. Choose ‘PF Advance (Form 31)’ for a partial withdrawal, provide the purpose, amount required, and your current address.
  9. Click on the certificate, submit any required scanned documents, and complete your application.

By following these steps, you can initiate the EPF withdrawal process online, saving time and effort compared to the physical application method.

EPF Withdrawal Taxability:

One crucial aspect to consider when withdrawing your EPF is the tax implications. The EPF withdrawal is tax-free if you have contributed to the EPF account for at least five consecutive years. However, if there is a break in the five-year contribution period, the withdrawal amount becomes taxable for that financial year.

Here’s how the tax deduction works:

  • No TDS (Tax Deducted at Source) is deducted if you withdraw the EPF amount after completing five years of continuous service, regardless of the withdrawal amount.
  • If you withdraw the EPF amount before completing five years of service and the withdrawal amount exceeds ₹50,000, TDS is deducted as follows:
  1. TDS of 10% will be deducted on EPF withdrawal for employees withdrawing more than ₹50,000 before completing five years and producing their PAN card.
  2. When such employees do not produce their PAN cards, a TDS of 30% will be deducted from the withdrawal amount.
  3. However, no TDS will be deducted if the employee furnishes Form 15G/15H. You can download Form 15G from the EPFO portal or the website of major banks.

It’s important to note that no TDS is deducted when an employee withdraws the EPF amount after completing five years of continued service, irrespective of the withdrawal amount.

Documents Required for EPF Withdrawal:

To facilitate a smooth withdrawal process, you’ll need to have the following documents ready:

  • Universal Account Number (UAN)
  • Bank account information of the EPF subscriber (account number, IFSC code, and a cancelled cheque)
  • Identity proof (Aadhaar card, PAN card, or any other government-issued ID)
  • Address proof (utility bills, Aadhaar card, or any other government-issued document)

Having these documents handy will streamline the verification process and minimize delays in the withdrawal of your EPF amount.

Process to Enter Exit Date for PF Withdrawal:

The EPFO has introduced a facility that allows employees to enter their exit date from their previous employer on the Unified Member Portal. Previously, only the employer could enter the exit date, but now employees have the option to do so as well.

Here’s the process to enter the exit date:

  1. Log in to the UAN portal using your Universal Account Number and password.
  2. Click on the ‘Manage’ tab and select the ‘Mark Exit’ option.
  3. Choose your previous employer from the drop-down menu.
  4. On the new page, enter your date of birth, joining date, and exit date (as mentioned in your resignation or company leaving letter).
  5. You can verify the exit date by clicking on the ‘Service History’ option under the ‘View’ tab after logging into the UAN portal.

Entering the exit date accurately is crucial, as it determines your eligibility for EPF withdrawal and the applicable withdrawal rules.

How to Check PF Withdrawal Status?

After submitting your EPF withdrawal application, you can track its status by following these simple steps:

  1. Log in to the UAN portal using your UAN and password.
  2. Click on the ‘Online Services’ tab and select the ‘Track Claim Status’ option.
  3. Enter the reference number provided during the application process.
  4. The status of your PF withdrawal claim will be displayed on the screen.

Regularly checking the status can help you stay informed about the progress of your withdrawal application and take any necessary actions if required.

PF Customer Care Numbers and Contacts:

If you encounter any issues or have queries regarding the EPF withdrawal process, you can reach out to the EPFO through the following customer care channels:

  • PF toll-free number: 14470
  • PF missed call number for getting EPF details: 9966044425
  • PF balance enquiry number (SMS): Send “EPFOHO UAN” to 7738299899
  • PF email: employeefeedback@epfindia.gov.in

The EPFO customer care representatives can assist you with any questions or concerns you may have regarding the withdrawal process, documentation, or any other EPF-related matter.

EPF Withdrawal Forms:

Depending on the type of withdrawal you’re seeking, you’ll need to fill out specific forms. Let’s take a closer look at the three main forms:

Form 19 (Final Settlement):

  1. You must use EPF Form 19 to withdraw your EPF funds for the final settlement when you retire or change jobs.
  2. The form consists of two pages: the first page displays your personal and employment details, while the second page includes an advance stamped receipt (if you choose the cheque payment mode).
  3. You can fill out Form 19 online or offline and submit it to the respective EPFO office.

Form 31 (Partial Withdrawal/Advance):

  1. Use Form 31 to apply for a partial withdrawal or to avail of an advance from your EPF account.
  2. You can access and download Form 31 from the UAN portal or the EPFO website.
  3. To submit Form 31 online, log in to the UAN portal, navigate to the ‘Online Services’ tab, select ‘Claim,’ and follow the on-screen instructions.

Form 10C (Pension Withdrawal):

  1. Form 10C is used to withdraw or transfer your Employee Pension Scheme (EPS) amount.
  2. You can download the form from the EPFO website or portal.
  3. To fill out Form 10C online, log in to the EPF portal, select ‘Online Services,’ choose ‘Claim,’ and follow the prompts to select ‘Only Pension Withdrawal (Form 10C).’
  4. Enter your permanent address, validate your Aadhaar OTP, and submit the claim form.

Familiarizing yourself with these forms and their respective purposes will help you navigate the withdrawal process more efficiently.

Applying for Home Loan Based on EPF Accumulation:

Did you know that you can borrow from your EPF accumulation to purchase a home, flat, or construct a house? Here’s how it works:

  • You can borrow up to 36 months’ worth of your monthly contribution to purchase a home/flat or construct a house.
  • If you’re purchasing land, you can borrow up to 24 months’ worth of your monthly contribution.
  • You must have been in service for at least five consecutive years to be eligible for this loan.

To apply for a home loan through a housing society, send your application to the EPF Commissioner in the specified format (Annexure 1). The Commissioner will issue a certificate stating your monthly EPF contribution for the last three months.

Alternatively, you can provide a printed copy of your EPF passbook to the housing society, showcasing your last three months’ contributions. This will help them estimate the loan amount you can avail based on your EPF balance.

You can also apply for a home loan through the UAN member portal by following these steps:

  1. Log in to the UAN Member e-Sewa portal.
  2. Select the ‘Online Services’ tab and click on ‘Claim (Form-31, 19 & 10C).’
  3. Enter your bank account number registered with EPF and click ‘Verify.’
  4. Select ‘Yes’ to sign the certificate.
  5. Choose ‘Proceed for Online Claim’ and provide the reason for requesting an advance under ‘I Want to Apply For.’
  6. Select ‘PF Advance (Form 31)’ to withdraw your funds as an advance or loan. Enter the amount you wish to avail and your current address.
  7. Click on the certificate, upload any required documents, and submit your application.

Upon approval, the EPFO will directly make the payment to the housing society, streamlining the process for you.

Withdrawing EPF Without UAN:

In case you don’t have a Universal Account Number (UAN), you can still withdraw your EPF by following the traditional process:

  1. Download the PF withdrawal form from the EPFO website or obtain it from the Regional Provident Fund Office.
  2. Fill out the form and submit it at the Regional Provident Fund Office.
  3. Provide identity attestation from a bank manager, magistrate, or gazette officer, as required.
  4. You can check the jurisdiction of your PF office through the alpha-numeric Provident Fund Account Number, which indicates your state and location on your salary slip.

While having a UAN streamlines the process, the EPFO ensures that you can still access your hard-earned EPF savings even without one.

FAQ:

Can I withdraw my EPF amount before retirement?

Yes, you can withdraw your EPF amount partially before retirement under specific circumstances, such as medical emergencies, marriage, education, home purchase or construction, and loan repayment. However, you must meet the eligibility criteria and adhere to the withdrawal limits set by the EPFO.

Is the EPF withdrawal amount taxable?

The EPF withdrawal amount is tax-free if you have contributed to the EPF account for at least five consecutive years. If there is a break in the five-year contribution period, the withdrawal amount becomes taxable for that financial year, and TDS may be deducted accordingly.

Can I withdraw the entire EPF amount while changing jobs?

No, you cannot withdraw the entire EPF amount while switching jobs unless you remain unemployed for more than two consecutive months. In that case, you can withdraw 75% of the accumulated balance after the first month and the remaining 25% after the second month of unemployment.

How long does the EPF withdrawal process take?

The processing time for EPF withdrawal can vary depending on the method of application (online or offline) and the volume of applications received by the EPFO. Generally, online applications are processed faster than physical applications. It’s advisable to check the status of your application regularly through the UAN portal or by contacting the EPFO customer care.

Can I withdraw my EPF amount without submitting any documents?

No, you cannot withdraw your EPF amount without submitting the required documents. The EPFO mandates the submission of specific documents, such as identity proof, address proof, bank account details, and employment-related documents, to verify your eligibility and process your withdrawal request.

Conclusion and Call-to-Action:

Withdrawing your Employees’ Provident Fund (EPF) amount can be a straightforward process if you follow the right steps and have the necessary documents in order. By understanding the eligibility criteria, withdrawal limits, and the various forms involved, you can ensure a smooth and hassle-free experience.

Remember, the EPF is a safety net designed to support you during your retirement years or in times of financial need. Whether you’re seeking a complete withdrawal upon retirement or a partial withdrawal for specific purposes, the EPFO has streamlined the process, making it accessible both online and offline.

If you’re feeling overwhelmed by the paperwork or have concerns about the withdrawal process, consider seeking professional assistance from experts like Filingwala.com. As a leading accounting services company, Filingwala.com can guide you through the complexities of EPF withdrawal, ensuring that you comply with all the necessary regulations and maximize your benefits.

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Don’t let the complexities of the EPF withdrawal process discourage you from accessing your hard-earned savings. Take the first step today by reaching out to Filingwala.com or visiting their website at www.filingwala.com. Their experts will guide you through the process, ensuring that you receive your EPF amount in a timely and efficient manner.

Embrace the peace of mind that comes with professional assistance and unlock the financial security you deserve. Contact Filingwala.com now and embark on a hassle-free EPF withdrawal journey.

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