It is essential to manage your Provident Fund, particularly when you change jobs, face an emergency or retire. The process of PF withdrawal and the conditions are quite complex and confusing for many people because of the online portals, forms and rules. The upside is that, once you know the steps, it isn’t that complicated.
This article provides you a step-by-step procedure for doing the PF withdrawal online and offline, the time period for withdrawals, and the documentation required for the same. If you have an active UAN or not, you will find the appropriate way here.
How to Withdraw PF Amount
The two methods of applying for PF withdrawal are the physical form and online application. The two are considered valid by EPFO, but the online option is more convenient and quicker for most people.
Physical Application
In the offline option, you have to download the Composite Claim Form from the EPFO’s website. There are two versions – one for those members with Aadhaar linked to their account, and one for those without. Complete the form with your information and sign it. In the case of Aadhaar version, the employer is not required to attest to it. In case of the non-Aadhaar version, the employer’s attestation will be mandatory before filing the same with jurisdictional EPFO office.
Online Application
UAN (Universal Account Number) need to be active and your mobile number associated with UAN should be active as well. The KYC information such as Aadhaar, PAN and bank account also must be updated and verified. Afterwards, log in into the member portal of the UAN and verify the KYC status under the “Manage” tab and proceed to “Online Services”. Click the claim form option, provide your banking information, decide whether you want the full settlement or a partial withdrawal, and send any necessary paperwork and your signed undertaking.
How to Withdraw PF Using UAN
If your UAN is active, you can withdraw your PF by following the on-screen steps on the EPFO member portal. First of all, you need to log in with your UAN and password, and then type the captcha that appears. You can reset your password if you’ve forgotten it by means of an OTP sent to your registered number.
After logging in, click on ‘Online Services’ and then the claim form option. Fill in the bank account number to verify and then confirm that you agree with EPFO’s terms and conditions. Then select the reason for withdrawal from the drop down list (only the responses available for your will be displayed). Enter your address information and if applying for an advance, upload a copy of your cheque/passbook. Lastly, click on the link to send the OTP to a mobile registered with Aadhaar and fill it to file the claim.
Once submitted you will be able to check at any time the status of your claim by logging in to the portal and checking “Track Claim Status”. Upon verification of your details by EPFO, this amount will be credited directly to your linked bank account.
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How to Withdraw PF Without UAN
Don’t have a UAN? Access to PF is still available but will take a little longer. Fill the Composite Claim Form along with your personal information/employment information as per your situation (Aadhaar or non-Aadhaar). Return the completed form to your Regional PF Office (typically located on your salary slip).
In some instances, it may be necessary to obtain your identity attested by a bank manager, magistrate or gazetted officer. On submitting a completed form, the regional office will process the form and credit the amount to your registered bank account.
What Is the Timing For PF Withdrawal?
A complete withdrawal is not always possible. Below is a description of when you qualify.
Complete Withdrawal
The complete PF amount can be withdrawn at retirement or in case you are jobless for over 1 month. If you’re unemployed, you can only withdraw 75% of your balance in the first month, and 25% after the second month. It should be noted that changing jobs is not a sufficient repercussion to qualify for a total withdrawal, unless there is a genuine gap between jobs.
Partial Withdrawal
Withdrawals are permissible for certain life events and each event has an associated service requirement:
- Education: 7 yrs service to yourself or your child.
- Marriage: Is a condition requiring 7 years of service, you, your children, or your siblings
- Buying a House Or Flat: Requires 5 years of service
- A Homeowner’s Project: 5 years of service.
- Repaying a Home Loan: Requires 10 years of service
- Pre-retirement Withdrawal: Allowed once you turn 54, at least a year before retirement
Eligibility For PF Withdrawal After Resignation
There are certain conditions when you may be able to withdraw your PF after resigning. Your notice period should have been served or money paid to the employer in lieu of notice. You should have minimum 2 months continuous service with the previous employer, and details of the EPFO should be up-to-date and accurate.
PF Withdrawal Tax Rules
There can be various confusions regarding the tax rules applicable on PF withdrawal, it’s better to understand it clearly. If you have been contributing to your PF account for 5 years consecutively, the withdrawal is totally tax free. If there is an interruption in this five year period, the withdrawal is taxable in the year of interruption.
If the amount of withdrawal is over ₹50,000 before five years of service, TDS will be applicable. For those who already submitted PAN, 10% TDS is deducted. This rises to 30% without PAN. If your income does not exceed the limit of taxation, then you can avoid TDS by filing Form 15G or 15H. Knowing this step will happen when the PF is withdrawn can make financial planning a little easier and less tenuous.
Final Word
The PF withdrawal process can be followed either online or offline, depending on your preference as long as you have your KYC and UAN details sorted out. Be sure to update your documents, know what type of withdrawal you are eligible for, and be aware of the tax rules BEFORE you apply. Getting a claim done smoothly and on time hinges on just a bit of preparation.
FAQs
1.What’s the time period to withdraw from the PF?
Usually it takes 15-20 working days for your claim to be verified and the amount credited to your account, depending on EPFO’s processing time.
2. Am I allowed to cash out my PF before resigning from my working position?
Yes. Partial withdrawals are permissible for medical emergencies, education, marriage, or purchase and/or renovation of a primary residence (with necessary years of service).
3. Is withdrawal from PF taxable?
If you leave the company after 5 years of continuous service, then you don’t pay any taxes on the amount of your withdrawal.
4. Is it possible to make a full PF withdrawal on resignation?
Yes, You will be eligible to receive a full PF withdrawal after you resign and remain jobless for over two months.
6. How many days is it before I can withdraw my PF?
No, an active UAN will speed up the process and is completely online, but you may also withdraw your PF offline using the Composite Claim Form to be submitted to your Regional PF Office.
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