How To Withdraw PF ? Employee Provident Fund, or EPF, is a retirement savings plan available to all salaried employees. Employee Provident Fund Organisation of India is in charge of overseeing the procedure. The EPFO must be registered by any company with more than 20 employees. This plan is advantageous to all employees in terms of building a retirement fund. A portion of their monthly wage is deducted and deposited into their EPF account in this manner. After the employees retire, the funds in their EPF account are distributed to them.
Employees provident fund and miscellaneous legislation started the scheme in 1952. All rules and regulations are established by the Employee Provident Fund Organization. The EPFO’s operations are overseen by the Ministry of Labour and Employment. The employer will collect a sum by subtracting it from your monthly salary in this method. When you first start working for a company, both you and the company contribute 12% of your basic compensation to the EPF account. This remuneration takes into account any company-provided dearness allowance. Based on the EPFO’s rules, you will be paid a fixed rate of interest on this amount. The entire amount you receive, including interest, will be tax-free. 12% of your salary, plus 3.67 per cent from your employer, is contributed to the EPF account. The Employee Pension Scheme receives the remaining 8.33% of the 12 per cent. Whenever you retire or leave the company, you can withdraw the entire balance from your account. Your nominee or legal heir will be able to withdraw this EPF amount in the event of your untimely death.
How to withdraw PF?
EPF can be withdrawn in part or entirely. When a person retires or is unemployed for more than two months, he or she is eligible for a complete withdrawal. Partial EPF withdrawals are permitted in specific instances, such as for medical reasons, marriage, home loan repayment, and so on. Fill out the EPF withdrawal form online to lodge a withdrawal claim. You can only utilise the online withdrawal claim feature if your Aadhaar is linked to your UAN. Continue reading to learn more about the EPF withdrawal process. PDF might be completely or partially withdrawn.
- Complete Withdrawal
Under any of the following circumstances, EPF can be withdrawn:
- When a person retires
- When someone is out of work for more than two months.
Individuals who desire to withdraw money under this situation must get an attestation from a government-approved office. Individuals who have not been unemployed for two months or more are not permitted to withdraw their whole EPF balance while changing employers (i.e. the interim period between changing jobs).
- Partial withdrawal
Only under limited situations is it possible to withdraw a portion of your EPF balance. Medical concerns, marriage, land purchase/construction, loan repayment, and so on. Each of these conditions has its time restriction and set of criteria.
The procedure for withdrawing your EPF is as follows:
In general, you can withdraw your EPF by submitting one of the following forms:
- Offline application
- Online application
Offline/ Physical Application
To withdraw EPF balance, download the new Composite Claim Form (Aadhaar)/Composite Claim Form (Non-Aadhaar).
- Form for a Composite Claim (Aadhaar)
If you have seeded your Aadhaar number and bank account details on the UAN portal and your UAN is enabled, use the Composite Claim Form (Aadhaar).
- Form for a Composite Claim (Non-Aadhaar)
If your Aadhaar number isn’t seeded on the UAN portal, you can utilise the Composite Claim Form (Non-Aadhaar).
Fill out the form and submit it to the EPFO office in your area, together with the employer’s attestation. It’s also worth noting that, in the case of a partial withdrawal of EPF funds by an employee for the reasons listed in the table above, the obligation to provide various certificates has recently been removed, and EPF subscribers now have the option of self-certification. how many times we can withdraw pf advance ?
Application Form Online
The EPFO has introduced an online withdrawal option, which has made the process more convenient and time-efficient.
Make sure that the following conditions are met before applying for an EPF withdrawal online using the EPF portal:
- The Universal Account Number (UAN) has been activated, and the mobile number used to activate it is operational.
- Your UAN is linked to your KYC, which includes your Aadhaar number, PAN number, and bank account information, including the IFSC code.
The prior employer does not need to attest to your withdrawal application if the preceding conditions are met. If you match these criteria, you can withdraw your EPF online by following the steps outlined below.
Step 1- Log in using your UAN and password to gain access to the UAN Member Portal.
Step 2- From the drop-down menu under the ‘Online Services’ item in the top menu bar, select ‘Claim (Form-31, 19 & 10C).’
Step 3- The screen will display the member’s information. Click on ‘Verify‘ after entering the last four numbers of your bank account.
Step 4- To sign the certificate of the undertaking and continue, click ‘Yes.’
Step 5- Then, from the drop-down box, choose ‘Proceed for Online Claim.’
Step 6- To withdraw your cash electronically, select ‘PF Advance (Form 31).’
Step 7 – A new portion of the form will open, asking you to select the “Purpose for Advance Request,” the required amount, and the employee’s address. All alternatives for which the employee is ineligible for withdrawal will be highlighted in red.
Step 8- Check the certification box and send your application.
Step 9- Depending on the reason for filling out the form, you may be required to submit scanned documents.
Step 10- After your employer approves your withdrawal request, the funds will be removed from your EPF account and put into the bank account you specified when filling out the withdrawal form.
Your EPFO-registered cellphone number will receive an SMS notification. The cash will be paid to your account once the claim is processed. Despite the EPFO’s lack of a specific time limit, the money is normally credited within 15- 20 days.
Online EPF Withdrawal Benefits
There are several advantages to filing an online EPF withdrawal claim, as mentioned below:
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The online EPF withdrawal claim process saves you the time and effort of going to the PF office and waiting in long lines.
No need to contact your previous employer for verification
Unlike offline claims, which require the employer to attest to your paperwork, online claims are confirmed immediately. This is especially useful for persons who have recently relocated to a new place because it eliminates the need to ship documents or drive lengthy distances.
Time to Process
Within 15-20 days of submitting your claim online, it will be processed and refunded to your bank account. According to government plans, this processing time will be cut even further.
Documents needed to withdraw your PF
To withdraw money from your PF account, you’ll need the following documents:
- The IFSC code and account number are written on a blank and cancelled cheque. You should also make certain that the check you supply is for a single account holder.
- Forms 10C and 10D are bank account statements.
- Proof of your identity
- There are two revenue stamps.
- Forms 19 and 31
- Proof of address
How do I check the status of my EPF claim?
The member should initially initiate his UAN and afterwards register to the gateway to make an online withdrawal. Cash can likewise be moved to start with one PF account then onto the next using the interface. This portal can also be used to complete other online services like eKYC, contact information updates, and so forth. The EPF member portal allows you to monitor your EPF withdrawal status. You must first log into the portal online and then go to the ‘Online Services’ section and pick ‘Track Claim Status.’
What is the tax rate on a withdrawal from an EPF account?
Withdrawing EPF before completing 5 years of service may result in a 10% TDS fee. You must, however, submit your PAN when withdrawing monies. If you do not comply, a TDS of 30% will be deducted. Furthermore, the employee will not be responsible for any tax if he transfers monies from his PF account to NPS.
Any tax exemptions on EPF withdrawal?
If you have worked for an establishment for 5 years and have a PF account, you may be eligible for a tax exemption on your EPF withdrawal. If you leave before completing 5 years of continuous service, you will be obligated to pay taxes on the sum you left.
Is it possible to take your entire PF balance before you retire?
Only after you retire may you withdraw your entire PF balance. Only once you reach the age of 55 will you be able to retire. You will not be able to get your complete pension if you retire before reaching this age. However, one year before you retire, you are entitled to receive 90% of your EPF corpus. Keep in mind that you must be at least 54 years old.
Is it required that you provide your PAN number when withdrawing your EPF?
People who want to make a partial withdrawal from their EPF account must supply their PAN number. If you don’t, you may develop TDS at a rate of 30% or greater. If PAN is provided, however, the TDS rate that applies is 10%.