The Provident Fund (PF) or EPF is also referred to as the Employee Provident Fund Scheme. This is one in which the employees share a small portion of their salaries, i.e. 12% of their basic salary, every month. The employer shall share a similar amount. Together, this contribution is indeed a corpus. This is used to support the pension of the worker. Here is the Steps to Follow for EPF Withdrawal.
Eligibility Terms for EPF Withdrawal:
- The withdrawal of a provident fund is taxable under certain conditions after 5 years from opening an account.
- You do not need to close the provident fund once you switch the company, as PF will quickly be transferred to a new account by the online process.
- As per the law, you cannot withdraw the Provident fund balance money of a job you are working in.
- An employee can avail loan facility (Partial withdrawal) on EPF.
- In case of any emergency expenses like medical, house construction/purchase, and higher studies, partial withdrawal from EPF accounts are allowed.
- If the PF account holder faces unemployment before retirement can able to withdraw EPF.
- The EPF Corpus tax exemption is only allowed if an individual pays 5 consecutive years to the EPF fund. It will be taxable if there is a break in the contribution.
- Employees can withdraw easily from the Employees’ Provident Fund Organisation (EPFO) by linking UAN and Aadhaar, which were approved by the employer.
EPF account holders can able to withdraw their PF balance in two ways.
Steps for Offline EPF Withdrawal:
EPF holders have to download the new composite claim (Aadhaar)/composite claim form (Non-Aadhaar) from here:
Fill the new composite claim form (Aadhaar) and directly submit to the respective EPFO officer without an employer attestation. For the new composite claim form (Non-Aadhaar), employer attestation is a must.
Steps for Online EPF Withdrawal:
With the EPFO facility, the entire PF withdraws activity has become much easier within less time.
Before applying for online PF withdrawal, follow the below conditions:
- PF holders must ensure their working mobile number with Universal Account Number (UAN) activated.
- Also, UAN should be linked with KYC (Aadhaar, PAN, & Bank details).
Steps to Follow for PF Withdrawal:
- Visit the UAN portal.
- Login with your UAN and password and submit the captcha values.
- Select the ‘Manage’ button and check your KYC is verified or not.
- Click on the ‘Online Services’ tab and from the drop-down list, select the option ‘Claim (Form-31, 19 & 10C)’.
- Member, KYC, and service details will be shown.
- Click on verify by entering your bank account’s last 4 digits.
- Sign the certificate upon clicking “Yes” and proceed.
- Click on the “Proceed for Online claim”.
- Select the claim type, full, or partial in the claim form
- Choose “PF Advance (Form 31)” to withdraw your PF fund.
- Select the certificate and submit your EPF withdrawal application.
- Attach scanned documents to match with the filled form.
- Once the employer approves the withdrawal request, your money will be credited to the bank account within 15-20 days.