PF Withdrawal Rules 2023 Marriage, illness, higher education, home loan, EPF withdrawal onlineCheck status, limit, processing time and amount
Employees Provident Fund, often referred to as Provident Fund, is a retirement savings program. All employees of an eligible organization are subject to it. With the help of this scheme, employees can rely on the corpus of the post-retirement fund. PF Withdrawal Regulations have recently been updated to provide consumers with easy access to their PF funds. Read below to get detailed information regarding this PF Withdrawal Rules Like highlights, conditions, limits and procedures PF withdrawal online And more than that.
PF Withdrawal Rules 2023
Provident Fund, or PF, is a contribution-based savings program where both the company and the employee make financial contributions to build a fund for post-retirement expenses. Subject to certain provident fund withdrawal restrictions, the employee can access or withdraw the corpus created. Administered by Employees Provident Fund Organization which is a statutory body in India Employees Provident FundIt provides financial security to Indian citizens working in the organized sector.
EPF contributions are primarily meant for post-retirement savings. EPFO ensures that all employees remain enrolled in the program and avoid withdrawals from their PF corpus. To achieve this EPFO has framed some EPF withdrawal restrictions. The Employees Provident Fund Organization (EPFO) has updated several regulations governing withdrawals from the Provident Fund (PF) account.
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Highlights of EPF Withdrawal Rules
|name||PF Withdrawal Rules|
|Controlled||Employees Provident Fund Organization|
Checking PF Withdrawal Rules
- Unlike a bank account, EPF account does not allow withdrawal while a person is working. A long term retirement savings plan is EPF. Money can be withdrawn only after retirement.
- Partial withdrawals from EPF accounts are permitted in emergency situations like medical emergency, acquisition or construction of a house, or further education. Depending on the reason, partial withdrawal is subject to restrictions. A partial withdrawal request can be submitted electronically to the account holder.
- 90% of the EPF corpus can be withdrawn by an employee up to one year before retirement, provided they are at least 54 years of age.
- Although early retirement is not allowed till the age of 55, the EPF corpus can be taken only after retirement.
- If one is laid off before retirement due to a lockdown or retrenchment, the EPF corpus may be withheld.
- As per the new regulation, EPFO allows withdrawal of 75% of EPF corpus after one month of unemployment. After finding a new job, the remaining 25% can be deposited into a new EPF account.
- Before withdrawing from their EPF, members must declare themselves unemployed.
- Earlier, 100% of EPF could be withdrawn after two months of unemployment.
- When EPF corpus is prematurely withdrawn, tax is deducted at source. TDS is not required, however, if the total amount is less than Rs. 50,000. Note that 10% TDS rate is applicable if an employee submits their PAN along with their application. If not, the price is 30% plus VAT.
- Form 15H/15G is a declaration form claiming that TDS is exempted on an individual’s entire income as it is not taxable.
- Employees need not wait for employment approval before withdrawing EPF. If the employee’s UAN and Aadhaar are linked and the employer’s approval is given, it can be done immediately through EPFO. You can check your EPF withdrawal status online.
- Under certain restrictions, tax exemptions are available for withdrawal of EPF corpus. Tax exemption on EPF corpus is available only if an employee contributes to EPF account for 5 consecutive years. If there is a gap in contributions to the account for five consecutive years, the EPF amount is taxable. So the entire EPF amount will be treated as taxable income for that financial year.
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Conditions for Withdrawal of PF
Some of the conditions for withdrawal of PF are as follows:
- While employees remain in service:
- If an employee wants to get advance from PF account, they have to submit composite claim form. Also, customers have to fill Form 14 if they want to use their PF account to pay for their LIC coverage.
- For pension fund, employees above 58 years of age should submit Form 10D. Also, they will be eligible to get monthly pension after completing ten years of service. If you have not completed ten years of qualifying service, you must submit the Composite Claim Form.
- Employee changes job:
- When an employee changes jobs their EPF account is definitely transferred. They have to submit a Form 13 application for the same. However, if an employee leaves one company and does not transfer to another company, he can file a claim against the PF and pension funds. But only composite claim form with or without Aadhaar can be used to raise this claim.
- An employee above the age of 58 who has completed ten years of qualifying service can file a pension claim using Form 10D. They should also use composite claim form to submit pension claim.
- When workers leave companies due to physical disability:
- Using Form 10D, employees can submit a claim for monthly pension.
- Employees are eligible to submit a PF claim using Composite Claim Form (Aadhaar/Non-Aadhaar).
- Workers who are above 58 years of age and have less than ten years of qualifying service can file claims for pension and PF benefits. For this they should use Composite Claim Form (Aadhaar/Non-Aadhaar).
- When employees die while serving:
- There may be instances where an employee dies before attaining the age of 58 years. The beneficiary, nominee, or successor can then apply for PF settlement using Form 20. They have to submit Form 10D to receive pension payment every month. Also, they have to submit Form 5IF for Employees Deposit Linked Insurance (EDLI).
- Claims can also be filed by nominees of the employee on death after age 58 and after ten years of qualifying service. They should use Form 5IF for withdrawal of EDLI amount and Form 20 for PF withdrawal. Also, they have to fill Form 10D to claim their monthly pension.
- When workers die after retirement
- Form 20 can be used to submit PF claims through an heir, nominee or beneficiary of a deceased employee. Also, they should use Form 10D to claim monthly pension.
- Even if the employee has not completed ten years of qualifying service after attaining the age of 58 years, the beneficiary is entitled to the pension fund. However, they should do so by submitting the Aadhaar/non-Aadhaar composite claim form.
PF Withdrawal Limit
|Self / daughter / son / sister / brother or marriage for post matriculation education of children||Minimum 84 months of service||Up to 50% of EPF account|
|Home loan for building or adding a house, buying a lot or renting a flat||Minimum 60 months of service||DA up to 36 months of his or her basic salary plus the sum of the employee’s and employer’s portions, interest or the entire cost of the house|
|Medical Expenses/Purchase of Equipment for Physically Handicapped/Natural Calamity/Factory Shutdown/Power Cut in Establishment||There is no minimum service period||His/her basic pay and DA for up to six months or full contribution|
|One year before retirement||Must be above 54 years of age.||Up to 90% of his/her EPF amount|
Online PF Withdrawal Procedure
Users can follow the steps given below for online PF withdrawal
- First, visit the Official website of Employees Provident Fund Organization (EPFO) portal, then, Homepage will open.
- Then, click on Services option For employees
- A new page will appear on your screen
- Now, click Member UAN/Online Service (OCS/OTCP) option under the Services tab, then, a new page will open.
- Enter your UAN, password and captcha code
- Now, click on the login button to login to your registered account
- Your account’s dashboard screen will open
- Now, under Manage tab, click on KYC option
- A new page will appear on your screen
- Now, under the Digitally Authorized KYC section, check all your KYC details
- Make sure all your details are correct
- Select online service link from above menu to proceed with withdrawal If all KYC details are correct,
- Click on CLAIM Form-31, 19 & 10C option
- The Online Claim (Form 31, 19 & 10C) form will be displayed on the screen
- Now enter the last four digits of your registered bank account number and double check it.
- A Certificate of Undertaking will be generated once the bank account is successfully verified.
- Finally, select the “Proceed for Online Claim” option.
- To withdraw money online, select PF ADVANCE (FORM-31) option.
- Select a justification for the claim from the drop-down menu next to the “Which Prerequisite” option. The fields for employee address and advance amount should also be completed. Now, click on the checkbox and submit your withdrawal request
- Next, upload the required documentation as per withdrawal type.
- If the withdrawal request is approved by the employer, the withdrawal amount will be deducted from the EPF account and paid into the concerned bank account. Once the claim is settled, you will receive an SMS notification on your registered cellphone number.