The Employees’ Provident Fund (EPF), commonly known as Provident Fund (PF) is an investment cum savings option that eligible companies offer to their employees as a retirement scheme.
The employees invest 12% of their basic pay in the EPF each month, and the employers contribute the same amount to the fund. This accumulated money in EPF earns annual interest and the employees can withdraw the fund at retirement.
EPF withdrawal is also possible if an employee leaves the job and stays unemployed for at least two months.
If you want to know how to withdraw money from EPF, this article can help you understand the process.
Procedure for EPF withdrawal online
Before you can withdraw money from EPF online, there are two things you must ensure:
- You have an activated Universal Account Number (UAN)
- The UAN is linked to the Know Your Customer (KYC) documents (Aadhaar card, bank details, and permanent account number (PAN) card)
Once you confirm the above conditions, follow the ten steps given below to withdraw from the EPF fund.
- Visit the UAN Member Portal and login using the UAN and password
- Click the ‘Online Services’ tab on the menu bar
- Click on the ‘Claim (Form-31, 19 & 10C)’ on the drop-down menu
- Provide the last four digits of your bank account when you see the Member Details page, and click on the ‘Verify’ button
- Sign the undertaking certificate by clicking on ‘Yes’ and then proceed
- Select the ‘Proceed for Online Claim’ option
- Click on the ‘PF Advance (Form 31)’ option
- Select ‘Purpose for which advance is required’, and provide your address and the amount required on the form
- Check on your certification and submit the application
- Upload the scanned copies of the required documents depending on your purpose of application
After completing the process of EPF claim online, wait for your employer’s approval. Once they sign off, the accumulated funds in your EPF will be transferred to your bank account.
You will receive an SMS notification on the phone number registered with the Employees’ Provident Fund Organization (EPFO).
Procedure for EPF withdrawal offline
If you are not comfortable with online withdrawal, it is possible to do it conventionally. You can make the EPF claim for withdrawal by visiting a jurisdictional EPFO office near you.
You must submit a duly filled Non-Aadhaar Composite Claim Form attested by your employer or the Aadhaar Composite Claim Form, which does not have to be attested by your employer.
Advantages of EPF withdrawal online
Here are some benefits of withdrawing money from your EPF account online.
- Easy withdrawal: Visiting an EPFO office can be tiring —you need to travel to the office and wait in queue for your turn. But you can complete the procedure online right from the comfort of your home, using your computer or phone. This makes the process hassle-free.
- Quick process: Once you apply for a withdrawal from EPF, it takes about 15 to 20 days to process the claim and transfer the money to your linked bank account. The Government of India even intends to reduce the time further. Therefore, it is in your best interest to make the withdrawal claim online.
- Eliminates the need for employer’s verification: Offline withdrawal of EPF may require you to ask your employer to attest the necessary documents. This can be especially difficult if you have moved to another city. That is where making an online claim can be helpful as it is automatically verified without requiring the employer’s attestation.
What are the documents required for EPF withdrawal online?
Making an EPF withdrawal online requires you to submit the following documents.
- Duly filled Composite Claim Form
- Identity proof
- Personal data like date of birth, father’s name, and other information that match with your ID proof
- Address proof
- One canceled and blank check with a clearly noticeable account number and Indian Financial System Code (IFSC)
- Bank account statement
- Two revenue stamps
The above mentioned documents are sufficient only if you are making a withdrawal after a minimum of five years of employment with the same company.
Any claim made before that requires you to provide ITR Form 2 and Form 3. The forms show a complete breakup of the amount deposited in your EPF account each year.
Eligibility criteria for EPF withdrawal
- You can withdraw the entire EPF amount only after retirement.
- You need to be over 55 years of age to withdraw the fund in case of early retirement, as per rules stated by the EPFO.
- You can make partial withdrawals in case of financial needs such as house construction or purchase, higher education, or a medical emergency.
- You can withdraw 90% of the funds one year before your retirement.
- You can withdraw the amount in case of unemployment before retirement because of retrenchment or lock-down.
- You can withdraw 75% of the fund after one month of unemployment. You will get the rest in your new EPF account after you get another job.
- You must link your Aadhar and UAN to the EPF account to get online approval for the withdrawal claim. Otherwise, you will need your employer’s authorization.
Rules and limit for EPF withdrawal
You can make an EPFO online claim only in the following circumstances.Circumstances Employment tenure Permissible withdrawal amount Limitations Purchase or construction of a new house Minimum continuous employment for five years 24 times your monthly salary for buying a house, and 36 times your monthly salary for both buying and constructing a house Only you and your spouse can make a withdrawal claim Medical emergency At any time The lower amount between six times your monthly salary and the amount equivalent to your share of the EPF with interest You, your spouse, children, or parents can make the claim Home loan repayment Minimum continuous employment for three years 90% of your EPF fund Only you and your spouse can make a withdrawal claim House renovation Minimum continuous employment for five years since the date of the construction completion The amount equivalent to 12 times your monthly salary Only you and your spouse can make a withdrawal claim Wedding Minimum continuous employment for seven years 50% of your contribution to the EPF with interest You, your siblings, and/or your children can make a withdrawal claim
Tax on EPF withdrawal
The EPF withdrawal amount is tax-exempted in case of the following:Scenario Taxation rule When you withdraw over ₹50,000 before completing continuous employment for five years Fully exempted if you submit Form 15G/15H. Otherwise, 30% Tax Deducted at Source (TDS) plus tax is charged if your PAN is not linked, 10% TDS is applicable if your PAN is linked, When you withdraw the EPF amount after completing continuous employment for 5 years Fully exempted If you transfer money from the EPF account to the National Pension System (NPS) Fully exempted
The EPF withdrawal amount is taxable in the following scenarios.
- The entire withdrawn amount is taxable if you did not have continuous employment for five years.
- The amount is taxable if you do not submit Form 15G/15H to declare that you do not have taxable income.
- Your contribution, your employer’s contribution, and the interest earned on every deposit to EPF are taxable if you claimed exemption on your EPF contribution the previous years as per Section 80C of the Income Tax Act, 1961. You do not have to pay tax on your contribution if you did not make a claim the previous year
One important point to remember is that your tax liability depends on your salary during the year of withdrawal.
Checking EPF claim status online
You may check the EPF claim status online by following the below steps.
- Visit the EPF member portal and log in using your credentials
- Enter the ‘Online Services’ section and click ‘Track Claim Status’
You may check the claim status as many times as you need. When the status changes, it is automatically updated on the portal. However, it may take up to 20 days to process your withdrawal claim.
1. Does one need PAN to withdraw money from EPF?
You need PAN to get the tax exemption on the withdrawal of EPF. Otherwise, almost 30% TDS is applicable without PAN.
2. What is the inquiry phone number for EPF withdrawal?
You may call on EPFO’s toll-free number 1800118005 to know about EPF withdrawal.
3. Can one withdraw from EPF before retirement?
Making withdrawal claims before retirement is permissible under specific situations like medical emergencies, construction or purchase of a house, and your or your children’s wedding.
This is a companion discussion topic for the original entry at https://jupiter.money/resources/withdraw-epf-online/