Find Out the Process of PF Withdrawal Online

Employees' Provident Fund (EPF), often known as Provident Fund (PF), is compulsory savings and retirement plan for qualifying employees. According to the Employment Provident Fund Act of 1952, the government established this programme, in which employee and employer both contribute a certain sum each month.

Your PF account can change when you start working for a new firm, but your consolidated EPF account, which is identified by your Universal account number (UAN), remains the same.

In this article, you’ll learn about PF withdrawals, their types, eligibility, documentation, limits and so on.

Types of PF Withdrawal

EPF can be withdrawn with three different types:

• Final settlement
• Partial withdrawal
• Pension withdrawal benefit

In case a person is jobless for two months or above or is retired, they are entitled to withdraw completely. In some instances, such as medical reasons, marriage, house loan repayment, and so forth, partial EPF withdrawal is permissible.

PF Withdrawal Claim Forms

The PF Withdrawal Claim Forms that must be completed to withdraw the provident fund or pension fund differ depending on the employee's age, the reason for filing the claim, and whether or not they are still employed. Withdrawals were formerly processed using Forms 19, 31, and 10C. However, these forms have lately been supplanted with a composite claim form. The forms that were used to ask for the employee's UAN number have been replaced with a composite claim form that asks for the employee's Aadhaar number.

Claim Forms Required on the Basis of Different Criteria for PF Withdrawal

In the event of an employee’s death

• The nominee can collect the PF amount through Form 20 and the pension amount through Form 10D before reaching the age of 58
• They can claim the PF amount using Form 20 and the pension amount using Form 10D after reaching the age of 58 and having completed ten years of qualified service
• If the nominee is under the age of 58 and has not completed ten years of eligible service, they can apply for a final PF settlement using Form 20 and a pension fund using the composite claim form (Aadhaar/Non-Aadhaar)

In the event of an employee’s death while in service

• The nominee can apply for a PF settlement using Form 20, a monthly pension using Form 10D, and an Employees’ Deposit Linked insurance (EDLI) sum using Form 5IF before they reach the age of 58
• They can claim the PF using Form 20, the pension using Form 10D, and the EDLI sum using Form 5IF after reaching the age of 58 and having completed ten years of qualifying service
• They can make the PF settlement using Form 20, withdraw the pension using the composite claim form (Aadhaar/Non-Aadhaar), and claim the EDLI amount using Form 5IF after reaching the age of 58 and having not completed ten years of eligible service

In the event of an employee switching his job

• Form 13 should be used if you want to transfer your EPF account
• When an employee leaves a company and does not return, they can file a claim for PF and pension funds using the composite claim form (Aadhar/Non-Aadhar)
• Suppose the employee has completed 10 years of eligible service and is above the age of 58. In that case, they can file a PF claim using the composite claim form (Aadhaar/Non-Aadhaar) and a pension claim using Form 10D

In the event of an employee’s physical disability

• They can file a PF claim by filling out a composite claim form (Aadhaar/Non-Aadhaar). Form 10D can be used to file a pension claim
• If you are beyond the age of 58 and have not completed ten years of qualifying service, you can apply for PF and pension using the composite claim form (Aadhaar/Non-Aadhaar)

When an employee is still in service

• If he wants to withdraw money from his PF account, he must fill out a composite claim form (Aadhaar/Non-Aadhaar)
• Form 14 must be provided if he intends to fund his LIC coverage from his PF account. If he has reached the age of 58 and desires to receive a pension
• If he has completed ten years of qualifying service, you should fill out Form 10D to apply for a monthly pension
• If he hasn't completed ten years of qualifying service, fill out the composite claim form (Aadhaar/Non-Aadhaar)

PF Withdrawal Rules 2021

In 2021, the Employees' Provident Fund Organization (EPFO) amended some of its regulations regulating withdrawals from a PF account. These regulations are changed to make it easier for subscribers who are experiencing financial hardship as a result of the Coronavirus outbreak to access their PF money.

Under the new guidelines, account holders can withdraw up to 3 months' basic pay + dearness allowance, or 75% of their PF or EPF account's net balance, whichever is less. This is a non-refundable deposit. These claims for withdrawal can be made over the internet. Online claims can be resolved within three working days; however, offline claims might take up to 20 days.

Eligibility Criteria for PF Withdrawal

EPF withdrawal is only possible when you meet the eligibility criteria, except for some special considerations. Listed down are the criteria required to meet:

• Only after retirement, it is possible to withdraw the whole EPF account balance. Only once a person has reached the age of 55 does EPF consider Early retirement
• In case of a medical emergency, the acquisition or building of a home, or the pursuit of higher education, is it permissible to withdraw part of your EPF
• One year before retirement, EPFO authorises a withdrawal of 90% of the funds
• If a person loses the job before retirement due to a lock-down or layoff, they can withdraw the EPF corpus
• The new law states that after one month of unemployment, only 75% of the corpus can be withdrawn. After acquiring employment, the remainder will be transferred to a new EPF account
• Employees do not have to wait for their employer's permission to withdraw their EPF funds. They can acquire permission online by adding UAN and Aadhar to their EPF account
• To file an online claim, you'll need your UAN number, a Bank account linked to your UAN, and your PAN and Aadhar records seeded into the EPF database

Documents Required for PF Withdrawal

When applying for a PF withdrawal, the following documents are required:

• Two revenue stamps
• Composite claim form (Form-31, 19, 10C & 10D)
• Cancelled blank cheque
• Bank account statement

Note: If an employee withdraws his PF funds before completing five years of continuous employment, he must complete ITR Forms 2 and 3 to provide a thorough breakdown of the total amount put in the PF account each year.

Procedure for PF Withdrawal

One can withdraw their PF amount in 2 ways - either it can be offline or online. Here are the steps outlined to make your understanding better.

Offline Withdrawal

• To begin, obtain a copy of the Composite Claim Form (Aadhaar)/Composite Claim Form (Non-Aadhaar)
• If you've already input your bank account information and Aadhaar number on the UAN portal, you can use the Composite Claim Form (Aadhaar)
• Without the signature of the employer, fill out the form and send it to the jurisdictional EPF office
• If the Aadhaar number has not been submitted on the UAN portal, you can utilise the Composite Claim Form (Non-Aadhaar)
• Next, you need to complete the form and send it to the EPF office together with the employer's attestation

Online Withdrawal

To withdraw EPF funds online, you must first ensure that your UAN is active and make sure KYC is done. Just in case if you meet these requirements, you can withdraw your EPF online by following the procedures below:

• Step 1: Use your UAN and password to log in to the UAN Member Portal
• Step 2: Select 'Claim (Form-31, 19,10C & 10D)' from the drop-down menu under the 'Online Services' option in the top menu bar
• Step 3: The information about the member will appear on the screen. Click 'Verify' after entering the last four numbers of your bank account
• Step 4: Click 'Yes' to sign the undertaking certificate and continue
• Step 5: Now select 'Proceed for Online Claim' from the drop-down menu
• Step 6: To withdraw your cash electronically, choose 'PF Advance (Form 31)'
• Step 7: A new part of the form will appear, where you must choose the 'Purpose for which advance is necessary,' the required amount, and the employee's address
• Step 8: Check the certification box and submit your application
• Step 9: Depending on the reason for filling out the form, you may be required to submit scanned documents
• Step 10: Once your employer has approved your withdrawal request, the funds will be sent from your EPF account to the bank account you provided on the withdrawal form

Limit of Withdrawal

The maximum EPF withdrawal is determined by the reason for the withdrawal. Employees have the option to make withdrawals in some situations. The reason for the withdrawal, the minimum service required to be qualified to make a withdrawal and the PF withdrawal limit are listed below.

Taxation Policy on EPF Withdrawal

The money you get from your EPF withdrawal is tax-free, but only if you meet the following criteria:

Important Points to Remember

• If an employee claimed Section 80C exemption on EPF contributions in past years, they would be required to pay tax on the employee's contribution, the employer's contribution, and the interest on each deposit. The employee's contribution portion, however, will be free from tax if they did not claim it the previous year
• If there is a gap in the 5-year term, the EPF amount will be taxed in its entirety
• The amount of tax owed is calculated using the employee's wage in the year of withdrawal
• If your entire Income is not taxable, employees must take out Form 15H/15G as a declaration

EPF Claim Status Check

The UAN member portal is where you can withdraw your EPF. Before making an online withdrawal, the member must first activate his UAN and then log into the site. The site can also be used to move money from an old PF account to a new one. This site 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. To track claim status, go to the 'Online Services' area of the site and click 'Track Claim Status.'

The Bottom Line

EPF is savings for a better future. Employees must contribute 12% of their base pay to the EPF each month. The company contributes to the employee's PF account in the same amount as the employee. The money you put into the account receives interest every year. Once an employee retires, they can withdraw the total amount collected in their EPF. However, according to this article, early withdrawals from the PF account are possible if certain requirements are met.