Apply for EPF Withdrawal
EPF Withdrawal
EPF withdrawal claim is made by an employee if he is unemployed or when he retires. 75% of the EPF balance can be withdrawn after one month of unemployment and the remaining 25% can be withdrawn after two months of unemployment. You can make a withdrawal claim by filling the EPF withdrawal form online. Note that you can use the online withdrawal claim facility only if your Aadhaar is linked with your UAN.
Eligibility Conditions for EPF Withdrawal
Following are the conditions that an employee must meet in order to be eligible for withdrawing EPF-
- Following are the conditions that an employee must meet in order to be eligible for withdrawing EPF-
- Partial withdrawal of EPF is permitted only in the case of a medical emergency, house purchase or construction, or higher education
- EPFO allows withdrawal of 90% of the amount 1 year before retirement
- One can withdraw the EPF corpus if he/she faces unemployment before retirement due to lock-down or retrenchment
- As per the new rule, only 75% of the corpus can be withdrawn after 1 month of unemployment. The remaining will be transferred to the new EPF account after gaining employment
- Employees do not need to wait for approval from their employer for withdrawing their EPF. By linking UAN and Aadhar to your EPF account, you do get the approval online
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While making the claim online, you must have- o
• An active UAN number
• Bank details linked with UAN
• PAN and Aadhar details seeded into EPF database
EPF Withdrawal Form/Composite Claim Form
The PF withdrawal forms that need to be submitted vary depending upon the age, the reason for claiming and whether or not the employee is still working. Employees will have to present the Composite Claim Form in order to make a partial withdrawal or final settlement claim.
Earlier, documents like Form 19, Form 31 and Form 10C were required to withdraw the amount. However, now these documents have been replaced by a composite claim form which needs the Aadhar details of the employee. The submission of this form does not require attestation of the employer.
When applying for the withdrawal offline, you are required to fill out the Composite Claim Form which serves the purpose of three forms – Form 19 (For Final PF Settlement), Form 10C (For Pension Withdrawal) and Form 31 (For Part-withdrawal of PF amount).
Documents Required
- Composite Claim Form
- Two revenue stamps
- Bank account statement (The bank account should be only in the name of the PF holder while he/she is alive)
- Identity proof
- Address proof
- One blank and cancelled cheque with clearly visible IFSC code and account number
- Personal information such as father’s name, date of birth, etc. should clearly match with the identity proof
If an employee withdraws his PF amount before 5 years of continuous service, he is liable to facilitate ITR Forms 2 and 3 in order to prove a detailed breakup of the entire amount deposited in PF account every year.
Benefits of EPF Withdrawal Online
Hassle-free Withdrawal
Reduced Processing Time
No need to visit the previous employer for verification
Limitations of EPF Withdrawal
Employees can withdraw their EPF corpus only under the following conditions-
• Construction/Purchase of house
– The employee must be in continuous service for 5 years
– Only the PF account holder and his/her spouse can apply for withdrawal
– The amount that can be withdrawn is limited to 24 times the monthly salary for purchasing or 36 times the monthly salary in case of purchase and construction (both)
• Repayment of home loan
– The employee should be in continuous service for 3 years
– Only the PF account holder and his/her spouse can apply for withdrawal
– 90% of the amount can be withdrawn
• Renovation of house
– The employee should be in continuous service for 5 years from the date of completion of construction of the house
– Only the PF account holder and his/her spouse can apply for withdrawal
– An amount equal to 12 times the monthly salary can be withdrawn
• Wedding
– An employee must be in continuous service for 7 years
– The PF account holder, his siblings and/or children can apply for withdrawal
– 50% of the employee’s contribution with interest can be withdrawn
• Medical treatment
– There is no condition of the minimum work time period
– The PF account holder, his/her parents, spouse or children can apply for withdrawal
– An amount equal to the employee’s share with interest or 6 times his monthly salary, whichever is lower can be withdraw
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Taxation on EPF Withdrawal
The corpus from EPF withdrawal is exempt from taxation; however, only under certain conditions, which are as follows-
• The employee must have contributed to the EPF account for 5 continuous years; withdrawals made before the time period of 5 years are not tax-free
• The EPF amount is taxable if there is a break in the 5 year time period; in which case, the entire amount will be taxed
• TDS is deducted on premature withdrawal of the EPF corpus, only in case if the amount is more than Rs. 50,000
• If an employee provides their PAN card with the application, TDS of 10% will be payable; whereas a 30% TDS plus tax will have to be paid if the employee fails to provide their card
• Employees need to fill Form 15H/15G as a declaration if their total income is not taxable
• If an employee chooses to transfer funds from their PF account towards the National Pension Scheme (NPS), they will not be liable to pay tax on such withdrawal
• If an employee has claimed exemption on EPF contribution for the previous years on EPF as per Section 80C, they will be liable to pay tax on employee’s contribution, employer’s contribution and interest on each deposit. However, if they did not claim it in the previous year, the employee’s contribution part will be exempted from tax
• The tax that the employee is liable to pay will depend upon his salary in the year of withdrawal
How we Work?
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Points to Consider Before Applying for EPF Withdrawal
- Provident Fund withdrawn within 5 years of service is taxable
- If you are changing your job, then you don’t need to withdraw your PF account; you should transfer your PF amount to the new account instead
- You are not allowed to withdraw your PF balance of a job where you are currently working
- Loan or partial withdrawal of PF balance is allowed only under certain conditions
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Before you apply for EPF withdrawal, you must
• Update your Aadhar number in UAN portal
• Get your Aadhar authenticated by your employer
• Link your Aadhar to UAN
• Fill the EPF withdrawal form online
Frequently Asked Questions (FAQs)
| Medical Purpose | Lower of the total corpus or six times the monthly salary |
| Wedding | 50% of PF contribution |
| Home Loan Repayment | Up to 90% of the EPF corpus |
| Home Renovation | 12 times the monthly salary |
| Retirement | Total EPF Balance |
| Unemployment | 75% after 1st month and 25% after 2nd month of unemployment |
However, if you are currently unemployed for more than two months then you can claim for the total withdrawal of your EPF funds by filling in Form 19.
How many times can I withdraw the PF money in advance online?
PF advance can be claimed on various but pre-specified grounds. Please read Situations when you can make a pre-retirement withdrawal from EPF to check if you are eligible to make PF advance claim.
The frequency of withdrawal varies depending on different factors. As per the latest rules,
• You can make PF withdrawal for marriage not more than three times.
• Similarly, for post-matriculation education, you can claim for withdrawal of your PF fund for a maximum of three times.
• If you are purchasing a house/plot or constructing a house then you can claim for PF advance only once.
• On critical illness/ medical emergency grounds, there is no explicit limit on the number of times you can raise a claim for PF withdrawal before retirement.
• he/she has to purchase/construct a house
• wedding of himself/herself and/or child
• any medical illness
