Employees’ Provident Fund (EPF), also referred to as PF (Provident Fund), is a mandatory savings cum retirement scheme for employees of an eligible organisation. The employees can fall back on the corpus of this fund post-retirement.
As per the EPF rules, the employees must contribute 12% of their basic pay every month to this fund. The employer contributes a matching amount to the employee’s PF account. The amount deposited in EPF accounts earns interest on an annual basis.
Employees can withdraw the entire sum accumulated in their EPF once they retire. However, this article explains how one can make premature withdrawals from the EPF account after meeting certain conditions.
PF Updates
On 16 April 2024, the EPFO issued a circular through which it enhanced the PF partial withdrawal limit from Rs.50,000 to Rs. 1 lakh for auto claim settlements of medical treatment.
Starting FY 21-22, interest on employee’s contribution to an EPF account above Rs 2.5 lakh during the financial year is taxable in the hands of the employee. This interest is also subject to TDS under section 194A.
When Can You Withdraw EPF?
One may choose to withdraw EPF entirely or partially.
Complete Withdrawal
EPF can be withdrawn entirely only under the following two circ*mstances:
- When an individual retires
- When an individual is unemployed for more than one month, he/she can withdraw 75% of the total accumulated amount and can withdraw the rest 25% if the unemployment period stretches beyond two months.
Individuals cannot make a complete withdrawal of EPF balance while switching employers if they don’t remain unemployed for two months or more (i.e. the interim period between changing jobs).
Partial Withdrawal
Partial withdrawal of EPF balance can be made only under certain circ*mstances. The limit of withdrawal is also different for different circ*mstances. They are explained in the below table:
| Sl. No. | Particulars of reasons for withdrawal | Limit for withdrawal | No. of years of service required | Other conditions |
|---|---|---|---|---|
| 1 | Medical purposes | Six times the monthly basic salary or the total employee’s share plus interest, whichever is lower | No criteria | Medical treatment of self, spouse, children, or parents |
| 2 | Marriage | Up to 50% of employee’s share of contribution to EPF | 7 years | For the marriage of self, son/daughter, and brother/sister |
| 3 | Education | Up to 50% of employee’s share of contribution to EPF | 7 years | Either for account holder’s education or child’s education (post matriculation) |
| 4 | Purchase of land or purchase/construction of a house | For land – Up to 24 times of monthly basic salary plus dearness allowance For house – Up to 36 times of monthly basic salary plus dearness allowance, Above limits are restricted to the total cost | 5 years | i. The asset, i.e. land or the house should be in the name of the employee or jointly with the spouse. ii. It can be withdrawn just once for this purpose during the entire service. iii. The construction should begin within 6 months and must be completed within 12 months from the last withdrawn instalment. |
| 5 | Home loan repayment | Least of below:
| 10 years | i. The property should be registered in the name of the employee or spouse or jointly with the spouse. ii. Withdrawal permitted subject to furnishing of requisite documents as stated by the EPFO relating to the housing loan availed. iii. The accumulation in the member’s PF account (or together with the spouse), including the interest, has to be more than Rs 20,000. |
| 6 | House renovation | Least of the below: Up to 12 times the monthly wages and dearness allowance, or Employees contribution with interest, or Total cost | 5 years | i. The property should be registered in the name of the employee or spouse or jointly held with the spouse. ii. The facility can be availed twice: a. After 5 years of the completion of the house b. After the 10 years of the completion of the house |
| 7 | Partial withdrawal before retirement | Up to 90% of accumulated balance with interest | Once the employee reaches 54 years and withdrawal should be within one year of retirement/superannuation |
How To Withdraw PF Amount?
Broadly, the withdrawal of EPF can be made either by submitting:
- Physical application
- Online application
Physical Application
Download the new Composite Claim Form (Aadhaar)/Composite Claim Form (non-Aadhaar) to withdraw the EPF balance.
Composite Claim Form (Aadhaar)
- Use the Composite Claim Form (Aadhaar) if you have seeded yourAadhaar and bank details on the UAN portal and if your UAN is activated.
- Fill and submit the form to the respective jurisdictional EPFO office without the attestation of the employer.
Composite Claim Form (Non-Aadhaar)
- You can use the Composite Claim Form (Non-Aadhaar) if the Aadhaar and bank details are not seeded on the UAN portal.
- Fill and submit the form with the employer’s attestation to the respective jurisdictional EPFO office.
One may also note that in case of partial withdrawal of EPF amount by an employee for various circ*mstances as discussed in the above table, the requirement to furnish various certificates has been alleviated, and the option of self-certification has been introduced for the EPF subscribers. (For details, you can refer to order dated 20.02.2017 of the EPFO)
Online Application
The EPFO has come up with an online withdrawal facility, which has made the entire process more comfortable and less time-consuming.
Prerequisites
To apply for the withdrawal of EPF online through the EPF portal, make sure that the following conditions are met:
- The Universal Account Number (UAN) is activated, and the mobile number used for activating the UAN is in working condition.
- The UAN is linked with your KYC, i.e. Aadhaar, PAN, bank details, and the IFSC code.
If the above conditions are met, there is no need for the previous employer to attest to your withdrawal application.
Steps to Apply For EPF Withdrawal Online on UAN Portal
Step 1: Visit the UAN portal.
Step 2: Log in with your UAN and password. Enter the captcha and click on the ‘Sign In’ button.
Step 3: Click on the ‘Manage’ tab and select ‘KYC’ to check whether your KYC details such as Aadhaar, PAN and bank details are verified or not.
Step 4: Once the KYC details are verified, go to the ‘Online Services’ tab and select the option ‘Claim (Form-31,19,10C&10D)’ from the drop-down menu.
Step 5: The following screen will display the member details, KYC details and other service details. Enter your bank account number and click on ‘Verify’.
Step 6: Click on ‘Yes’ to sign the certificate of the undertaking and then proceed.
Step 7: Now, click on ‘Proceed for Online Claim’.
Step 8: In the claim form, select the claim you require, i.e. full EPF settlement, EPF part withdrawal (loan/advance) or pension withdrawal, under the tab ‘I Want To Apply For’. If the member is not eligible for any of the services like PF withdrawal or pension withdrawal due to the service criteria, that option will not be shown in the drop-down menu.
Step 9: Then, select ‘PF Advance (Form 31)’ to withdraw your fund. Further, provide the purpose of such advance, the amount required and the employee’s address.
Step 10: Click on the certificate and submit your application. You may be asked to submit scanned documents for the purpose you have filled the form.
EPF Withdrawal Taxability
EPF withdrawal is tax-free when an employee has contributed to the EPF account for five consecutive years. If there is a break in five years' contributions, the EPF withdrawal amount becomes taxable for that financial year.
TDS is deducted if an employee withdraws EPF amount before five years and the amount is above Rs. 50,000. The TDS is deducted as follows:
- TDS of 10% will be deducted on EPF withdrawal for employees withdrawing more than Rs. 50,000 before completing five years and producing their PAN card.
- When such employees do not produce their PAN cards, a TDS of 30% will be deducted from the amount withdrawn.
- However, no TDS will be deducted if the employee furnishes Form 15G/15H. You can download Form 15G from the EPFO portal or the website of major banks.
- No TDS is deducted when an employee withdraws EPF amount after completion of 5 years of continued service, irrespective of the withdrawal amount.
Documents Required for EPF Withdrawal
The following documents are necessary to withdraw PF amount:
- Universal Account Number (UAN)
- Bank account information of the EPF subscriber
- Identity and address proof
- Cancelled cheque with IFSC code and account number
Process to Enter Exit Date for PF Withdrawal
The exit date should be mentioned for PF withdrawal. The Employees' Provident Fund Organisation (EPFO) has introduced a facility where employees can enter the date of exit from their previous employer in the Unified Member Portal. Previously, only the employer could enter the date of exit, but now even employees can enter the exit date.
Below is the process to enter the exit date:
- Log in to the UAN portal using the Universal Account Number and password.
- Click on the 'Manage' tab and click on the 'Mark Exit' option.
- From the drop-down option, choose the employer.
- On the new page, enter the date of birth, joining date, and exit date. Mention the exit date as mentioned in the resignation or company leaving letter.
You can check the exit date by clicking on the 'Service History' option under the 'View' tab after logging into the UAN portal.
How to Check PF Withdrawal Status?
After you apply for PF withdrawal, you can follow the below steps to check the status of your PF withdrawal claim:
Step 1: Log in to the UAN portal using the UAN and password.
Step 2: Click on the 'Online Services' tab and click on the 'Track Claim Status' option.
Step 3: Enter the reference number.
Step 4: The status will be displayedon the screen.
PF Customer Care Numbers
PF toll-free number – 14470
PF missed call number for getting to know EPF details – 9966044425
PF balance enquiry number – SMS “EPFOHO UAN” to 7738299899
PF email – [email protected]
Which are the forms used for EPF withdrawal?
EPF Form 19
You must use the EPF Form 19 to withdraw EPF funds for the final settlement. The EPF Form 19 is essentially a two-page form that contains the following sections.
The first page of the form displays the member’s name, father or spouse’s name, Date of birth, name and address of the establishment, Date of joining and Date of leaving the company, PF Account Number and UAN, full postal address, PAN (Permanent Account Number), reason for leaving the organisation, mode of payment and the employer and employees signature.
You will find the advance stamped receipt on the second page of the form. You must fill this section only if you select cheque as the payment mode.
How to fill the EPF Form 19?
You can apply to withdraw or transfer the EPF corpus when you are quitting or changing your job. You can fill out the EPF Form 19 online or offline to remove your EPF amount.
Steps For Filling The EPF Form 19 online:
- You must visit the EPFO website and enter your UAN (Universal Account Number), password and captcha.
- You then click on the ‘Online Services Tab’ and choose the option “Claim (Form 31, Form 19, Form 10C and Form 10D)”.
- Enter your bank account number linked with your PF account and click on ‘Verify’.
- A ‘Certificate of Undertaking’ pop-up will appear, and you must select the ‘Yes’ option to proceed.
- A drop-down menu will appear under the ‘I want to apply for’ option.
- You must choose the ‘Only PF Withdrawal (Form – 19)’
- The next screen opens a new section to enter your complete permanent address.
- Tick off the disclaimer after filling up your address and click on the ‘Get Aadhaar OTP.’
- You must enter the OTP that you get on your registered mobile number, verify your Aadhaar and proceed to the next step.
- You receive a reference number on the successful submission of your application.
Steps For Filling The EPF Form 19 Offline:
You must download Form 19 from the EPFO portal and take a printout. You then fill up the PF account number, bank account number and IFSC code, PAN, joining and exit date of your employment, permanent address, mode of remittance, Rs one revenue stamp and a cancelled cheque to verify the bank account and submit it to the EPFO office.
EPF Form 31
You can use Form 31 for a partial withdrawal or to avail of an advance from the EPF account. You can access Form 31 from the UAN portal. However, you need your bank account details, PAN, and Aadhaar details to be updated on the portal to apply for EPF advance.
How To Download EPF Form 31?
You can download Form 31 by visiting the EPFO portal or accessing the link.
How To Submit EPF Form 31 Online?
- You must visit the EPFO portal, log in using your UAN, password, and fill in the Captcha code.
- You then visit the ‘Online Services’ tab and select ‘Claim’ to generate your online request.
- After you click on ‘Claim’, a page appears with details such as your name, father’s name, DOB, Aadhaar Number, PAN, Date of joining the organisation and your mobile number.
- You then click on ‘Proceed for Online Claim’ after checking all the required details.
- It would help if you chose the ‘PF Advance (Form 31)’ option from the drop-down menu.
- You then choose the reasons for taking the EPF advance and enter your current address and the amount.
- You must sign the disclosure and check-box the ‘Get Aadhaar OTP.’
- You will have to enter the OTP, click on ‘Validate OTP’ and submit the ‘Claim Form’.
What is Form 10C?
You have to fill and submit Form 10C online to withdraw or transfer your EPS (Employee Pension Scheme) amount. You can download the form at the following link:
How to Fill the Form 10C online?
- You must log on to the EPF portal and enter your UAN and password.
- You then choose ‘Online Services’ from the menu bar.
- You then pick the tab ‘Claim’, which contains Form 19, Form 31 and Form 10C.
- You will be directed to the next page, where you will see the service history, KYC requirements and member details.
- You then press the tab ‘Proceed Online Claim.’
- You will be guided to the Claims Section, where you can check details such as PAN, mobile number, bank account number and UAN number.
- You have to enter the last four digits of your bank account number and click ‘Verify’ to verify your details.
- You then click ‘Yes’ on the ‘Certificate of Undertaking.’
- You will then have to select the claim type as ‘Withdraw PF only’ or ‘Withdraw Pension Only.’
- Navigate to the menu “I want to apply for” and pick “Only Pension Withdrawal (Form 10C).”
- You must enter your permanent address in the Form 10C Section and tick the disclaimer section.
- Do click the tab ‘Get Aadhaar OTP.’
- An OTP will be sent to your Aadhar-linked mobile number. You must enter this OTP and click on the ‘Validate OTP’ tab and then on the “Submit Claim Form”.
- After you successfully submit Form 10C, you will get SMS notification on your mobile number.
- Your pension claim will be submitted with the filled up Form 10C, and the Employees Pension Scheme (EPS) amount gets transferred to your savings bank account.
How To Apply For Home Loan Based On EPF Accumulation?
You can borrow up to 36 monthly contribution to purchase a home/flat or construct a house. If you are purchasing land, you can borrow up to 24 monthly contribution. You must be in service for five consecutive years to avail of the loan.
You can apply for a home loan through the housing society and send the application to the EPF Commissioner in the format specified in Annexure 1. The EPF Commissioner will issue a certificate stating the monthly contribution to your EPF account over the last three months.
Alternatively, you can take a printed copy of your EPF passbook to show the last three months’ contribution and submit it to the housing society to get an estimate of the loan amount you can get from the EPF balance.
You can follow the steps below to apply for a home loan through the UAN member portal:-
Step 1: Log in to the UAN Member e-Sewa portal.
Step 2: Select the ‘Online Services’ tab and click on the ‘Claim (Form-31, 19 & 10C)’ option.
Step 3: Member details will be displayed. Enter your bank account number registered with EPF and click ‘Verify’.
Step 4: Select ‘Yes’ to sign the certificate.
Step 5: Select the ‘Proceed for Online Claim’ option and provide the reason for requesting an advance next to ‘I Want to Apply For’. The corresponding options will only be displayed if you are eligible from the years of service perspective.
Step 6: Select ‘PF Advance (Form 31)’ to withdraw your funds as an advance or loan. Also, enter the amount you would like to avail of and the employee’s address.
Step 7: Click on the certificate and apply. If prompted, you may be required to upload relevant documents.
Step 8: EPFO processes your application. On approval, EPFO makes the payment to the housing society directly.
How To Withdraw Your EPF Without UAN?
You will have to fill the PF withdrawal form and submit it at the Regional Provident Fund Office. Moreover, you can easily check the jurisdiction of your PF office through the alpha-numeric Provident Fund Account Number which shows your state and location from your salary slip.
You will have to follow the old process of PF withdrawal where you submit your identity attestation from a bank manager or magistrate or gazette officer.
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