EPF Withdrawal

EPF Withdrawals


Types of PF Withdrawals

Individuals who have subscribed to the EPFO and have their Aadhaar connected to their UAN, or Universal Account Number, are qualified for three forms of Provident Fund withdrawals. The following are a list of them:

  • Final Settlement of PF– This form of withdrawal is made when an individual’s employment term ends, and he or she prepares to retire.
  • Partial Withdrawal of PF– Partial withdrawals of PF are made in emergency cases, such as a medical emergency or long-term unemployment.
  • Pension Withdrawal Benefit– The pension withdrawal benefit allows the PF account holder to withdraw funds in installments rather than a lump sum during the retirement or job period. lump-sum during the retirement period or the employment period.

EPF Withdrawal Online Mode

To follow the PF withdrawal online procedures, you must have a UAN, or Universal Account Number, which must be connected to your KYC details such as Aadhaar, PAN, bank details, and IFSC code. EPF claims can be submitted electronically via the EPFO claim online portal or website. Withdrawals may be made by following the PF withdrawal protocol outlined below:

  • Visit UAN’s online portal.
  • Navigate to the ‘Login’ option and sign in with your UAN and EPFO password.
  • After logging in, go to the ‘Manage’ tab and check your KYC information, such as your PAN, Aadhaar, and bank account information.
  • After you’ve checked your KYC records, go to the ‘Online Services’ tab and select the ‘Claim’ option from the drop-down menu. When you select the claim option, the logged-in member’s KYC information appears on the screen.
  • To verify the data, enter the last four digits of the appropriate bank account and press ‘Verify.’
  • To access the undertaking’s certificate, select the ‘Yes’ option.
  • Furthermore, click on the option ‘Proceed for online claim’ and submit the EPF withdrawal claim forms, as shown under the tab ‘I want to apply for.’
  • After filling out the form’s details and specifying why you want to revoke your PPF, click the certification to submit the claim application.
  • An approval request is sent to the employer after the EPF withdrawal is successfully submitted. After the employer accepts the request, the funds are withdrawn from the EPFO claim account and deposited into the EPFO home member’s bank account.

EPF Withdrawal Form/Composite Claim Form

A Composite claim form is an application form that must be completed to remove funds from one’s PF account. For both partial withdrawals and final settlement claims, the PF claim form is required. Before the composite claim form, different forms such as Form 31 and Form 10C or Form 10D were required. However, the composite claim form, also known as the PF withdrawal form, has merged all EPF withdrawal forms into one. The form, also known as the EPF withdrawal form, includes employees’ Aadhaar numbers. This form has streamlined the process of claiming EPF withdrawals electronically by removing the need to get the employer’s form attested.

Eligibility Criteria for EPF Withdrawal

To receive funds from your EPF account, you must meet the following qualifications:

  • After ten years of eligible service, funds may be withheld if the employee is still working. He or she must complete EPF withdrawal form 31 for the offline process and the Composite claim form or the PF claim form for the online procedure.
  • If an employee has reached 58 but continues to work, he can remove funds from his EPF by completing the form 10C offline or the composite claim form online.
  • Suppose an employee’s position shifts, and they want to move their PF funds to a new account. Besides, if an individual remains unemployed due to a job change, they may withdraw funds. For this, he should fill PF form 13 or the composite declaration form.
  • Employees may withhold funds if they are physically impaired or if an accident renders them disabled. Employees who are physically disabled can file a pension claim by completing the EPF form 10C or 10D offline or the composite claim form online.
  • If an employee dies while on the job or after the age of 58 and has completed ten years of service, the beneficiaries may withdraw funds from the EPF by completing the PF form 20 offline or the composite claim form online.
  • Suppose the employee dies after the age of 58 but does not have ten years of qualifying experience. His or her beneficiary must complete a different form for PF claim settlement, namely the EPF claim form 20 or the composite claim form for the pension funds.

Documents Required for EPF Withdrawal

To withdraw funds from the EPF through the online application form, you must also send certain documents. These are listed below:

  • Aadhaar card, PAN card, passport, and driving license are examples of ID proof.
  • Address proof: a passport, PAN card, and utility bills for water, electricity, gas, and phone.
  • Statement of bank accounts
  • Cheques that have been canceled and have a visible IFSC code and bank account number
  • Stamps of sales
  • Depending on the type of EPF withdrawal, PPF withdrawal forms such as EPF withdrawal form 31, form 10C and 10D, or the composite claim form can be used.

Limitations of EPF Withdrawal

The funds that can be withdrawn from one’s EPF account are subject to certain restrictions under the EPF withdrawal regulations. The EPF withdrawal cap is determined by the reason for the withdrawal, such as a wedding, education, the purchase of land or property, the building of a house, the repayment of a mortgage loan, the reconstruction of a home, a medical emergency, unemployment, or the withdrawal of funds before retirement. The restrictions on these withdrawal reasons are as follows:

Reason For Withdrawal Eligibility Criteria Withdrawal Limit
Wedding Minimum of 7 years Up to 50% of the EPF contribution
Education Minimum of 7 years Up to 50% of the EPF contribution
Purchase of land Minimum of 5 years Up to 24 times of the monthly salary plus dearness allowance
Purchase of a house Minimum of 5 years Up to 36 times of the monthly salary plus dearness allowance
Repayment of a home loan Minimum of 10 years Up to 90% of the employee and the employer’s contribution
Home renovation Minimum of 5 years Up to 12 times the monthly salary
Medical emergency Any EPF account holder, irrespective of the experience Whichever is lower between 6 times of basic salary and dearness allowance or the employee’s EPF share with interest
Unemployment Any EPF account holder, irrespective of the experience Up to 75% of the total EPF balance
A year before retirement 57 years of age 90% of the total EPF balance

Benefits of EPF Withdrawal Online

The PF claim online method offers a variety of advantages. The following are the advantages of EPF withdrawal online:

  • Withdrawing funds through the PF withdrawal process online is quick and time-saving, as is the EPF withdrawal online process.
  • EPF is a donation provided by the employee to a separate fund from his or her in-hand pay. As a result, withdrawing EPF funds will help cover significant expenditures without jeopardizing other investments and savings from one’s in-hand salary.
  • Furthermore, the EPFO online claim’s processing period is short, with funds transferred to the employee’s bank account within 5-30 days.
  • In addition to the above, when an employee claims EPF funds online, they do not need the employer’s approval on a self-attested form, as they would in an offline phase. This is because the approval is automatically submitted to the employer as part of the online application process.

As a result of the above, it is clear that India’s online EPF withdrawal is advantageous to all employees.

Taxation on EPF Withdrawal

EPF withdrawals allow various tax deductions for the account holder. However, no tax exemptions can be availed if the continuous service offered is less than five years. In case the EPF withdrawal is made before five years, the individual is eligible for a Tax deduction at the source of his funds. Though there are certain exemptions to when EPF withdrawal is made before five years, and no tax is charged, these are:

  • When funds are withdrawn to fund medical emergencies
  • When the fund in the provident fund is lower than ₹ 50,000
  • When the Provident fund balance is transferred from one account to another
  • When the employer withdraws his business completely

Things to keep in mind Before Applying for EPF Withdrawal

Before applying for an EPF withdrawal, you should be certain of the following:

  • Make sure you know your UAN and password so you can remove or demand EPF online.
  • Also, ensure that the phone number associated with your EPFO account is active in order to receive updates and, if necessary, reset the password.
  • Keep up to date on new EPF withdrawal rules, such as the increase in the retirement age from 55 to 58 years, the existing EPF interest rate, the withdrawal cap, and tax obligations.
  • Finally, make sure you remove funds from your EPF account because it is sufficient to use one’s savings.

In case you have any queries regarding EPF Withdrawal, feel free to check the Dialabank website to get answers to all your questions and information about many more topics in the financial domain.

FAQs about EPF Withdrawal

How can I withdraw my EPF amount online?

One can withdraw the EPF amount online by visiting the EPFO apply online portal. However, to withdraw the EPF amount online, one must have their UAN, the Universal account number linked to the KYC documents such as Aadhaar or PAN. Further, follow the below-mentioned EPF withdrawal online steps:

  • Log in with your UAN number and password.
  • Update your KYC details by uploading the required documents, such as an Aadhaar card.
  • Fill in the EPF claim form such as Form 20, Form 10C, or form 31.
  • Further, click on the ‘claim’ button under the online services tab and select the type of withdrawal.
  • Choose the ‘yes’ option under the certificate of the undertaking and click on ‘Proceed’ and fill in the details like bank account number and reason for PPF withdrawal.
  • After the claim application’s successful submission, a request for the claim is sent to the employer. As and when the employer accepts the claim request, the withdrawal fund is transferred to the claimant’s bank account.

Can I withdraw my EPF before five years?

Yes, you can withdraw funds from your EPF before completing five years of service. However, if EPFO members claim or withdraw funds before five years have a tax obligation, TDS is deducted from one’s funds.

Can I make premature withdrawals?

Yes, premature withdrawals can be made from one’s EPF account in certain situations like marriage, education, medical emergencies, unemployment purchase of land or property, home renovations, and home loan repayments. Premature withdrawals can be of three types, Final settlement of PF, partial withdrawal, and pension withdrawal.

What is VPF Withdrawal?

VPF withdrawal is the withdrawal made by the VPF account holder from his VPF account. VPF full form is a voluntary provident fund wherein the employee contributes funds out of his own will. VPF’s withdrawal can be made in the middle of the year by salaried employees enrolled under the EPFO.

How much PF can I withdraw?

As per the Government of India’s current update, one can withdraw funds from their PF account equal to three months of dearness or basic allowance or up to 75% of the EPF account balance. The amount lower amongst these two can be withdrawn by the EPF account holder.

How much time PF online withdrawal takes?

The online withdrawal of EPF can take around 5-30 days to get deposited in the account holder’s bank account. The EPFO online application is automatically sent to the employer; thus, the sooner the employer approves of it, the sooner the money is transferred to the employee’s account.