EPF withdrawal claim is made by an employee if he is unemployed or when he retires. 75% of the EPF balance can be withdrawn after one month of unemployment and the remaining 25% can be withdrawn after two months of unemployment.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.
EPF Withdrawal Online Procedure
Follow the steps given below to fill the EPF withdrawal form and initiate a claim online:-
Step 1- Sign in to the UAN Member Portal with your UAN and Password.
Step 2- From the top menu bar, click on the ‘Online Services’ tab and select ‘Claim (Form-31, 19 & 10C)’ from the drop-down menu.
Step 3- Member Details will be displayed on the screen. Enter the last 4 digits of your bank account and click on ‘Verify‘
Step 4- Click on ‘Yes’ to sign the certificate of undertaking and proceed further
Step 5- Now click on the ‘Proceed for Online Claim’ option
Step 6- Select ‘PF Advance (Form 31)’ to withdraw your funds online
Step 7 – A fresh section of the form will open, wherein you have to select the ‘Purpose for which advance is required’, the amount required and the employee’s address
It is worth noting that all options for which the employee is not eligible for withdrawal will be mentioned in red.
Step 8 – Tick on the certification and submit your application
Step 9 – You may have to submit scanned documents depending on the purpose for which you have filled the form
Step 10 – Your employer has to approve your withdrawal request after which the money will be withdrawn from your EPF account and deposited in the bank account mentioned at the time of filling the withdrawal form.
An SMS notification will be sent to your mobile number registered with EPFO. Once the claim is processed, the amount will be transferred to your bank account. Although no formal time limit has been provided by the EPFO, the money usually gets credited within 15-20 days.
Eligibility Conditions for EPF Withdrawal
Following are the conditions that an employee must meet in order to be eligible for withdrawing EPF-
- Money from the EPF account can be withdrawn only after retirement. EPFO considers early retirement only after the person has crossed 55 years of age
- Partial withdrawal of EPF is permitted only in the case of 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 an approval from their employer for withdrawing their EPF. By linking UAN and Aadhar to your EPF account, you do get the approval online
- While making the claim online, you must have-
- 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, 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).
The following documents are required while applying for PF withdrawal-
- 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.
How to Check EPF Claim Status?
EPF withdrawal can be done through the UAN member portal. The member has to first activate his UAN and then log in to the portal for online withdrawal. The portal can also be used to transfer funds from his old PF account to a new account. Other online services such as eKYC, contact details update, etc. can also be performed through this portal.
EPF withdrawal status can be checked online at the EPF member portal. You have to log in to the portal online and select the ‘Track Claim Status’ in the ‘Online Services’ section. Note that you will not have to enter any reference number to check the status; it will be displayed on the screen automatically.
Benefits of EPF Withdrawal Online
Making an online EPF withdrawal claim has a number of benefits, some of which are listed below-
- Hassle-free Withdrawal- The online process of EPF withdrawal claim saves you from the hassle of visiting the PF office in person and standing in long queues.
- Reduced Processing Time- With online claims, the amount will be processed and credited into your bank account within 15-20 days of the application. This processing time will further be reduced as per the government plans.
- No need to visit the previous employer for verification- Unlike offline claims, wherein you have to get your documents attested by the employer, online claims get verified automatically. This is especially helpful for people who have moved to a new city as it saves them from the trouble of mailing the documents or travelling long distances.
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
- Amount equal to 12 times the monthly salary can be withdrawn
- 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 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 withdrawn
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 his PAN card with the application, he will be paying a TDS of 10%; whereas a 30% TDS plus tax will have to paid if the employee fails to provide his 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 his/her PF account towards the National Pension Scheme (NPS), he 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, he will be liable to pay tax on employee’s contribution, employer’s contribution and interest on each deposit. However, if he.she 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
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
- 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
- An individual can withdraw 90% of his available PF balance after the age of 54 years
FAQs Related to EPF Withdrawal
Q1. Is Form 15G/H required while filling EPF withdrawal form?
EPF withdrawal is exempted from tax if withdrawn after a service period of 5 years. However, if the withdrawal is made before the completion of 5 years, the member has to pay tax on the withdrawn amount. If the member furnishes Form 15G/H, no TDS is deducted at the time of withdrawal.
Q2. How much tax will I have to pay during withdrawal if I have not completed 5 years of service?
If you withdraw your EPF amount before completing 5 years of service, then you will be liable for payment of TDS at 10%. However, if the withdrawn amount is less than Rs. 50,000, no TDS will be deducted. Additionally, if you have not provided you PAN at the time of withdrawal, you will have to pay TDS at the rate of 30%.
Q3. What is the EPF withdrawal limit?
EPF withdrawal limit depends on the purpose for which the withdrawal is claimed.
|EPF Withdrawal Purpose||Withdrawal Limit|
|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|
Q4. What are the requirements for EPF withdrawal for home loan repayment?
The primary requirement for the member to withdraw EPF for home loan repayment is that the member should have completed three years of continuous service. Also, the maximum amount that can be withdrawn for the purpose is 90% of the EPF corpus.
Q5. Can I claim EPF without logging in to the EPF portal?
You can fill EPF withdrawal form offline if you do not wish to use the online platform. In case you want to use the online method, you will have to login to the EPF member portal using your UAN and password.
Q6. What is the online procedure of EPF withdrawal of previous organizations, if the current organization’s PF number is also linked with the same UAN number?
If you are currently employed and you have opened a new PF account linked with the same UAN then you are not eligible to withdraw your last EPF balance. It is advisable to transfer the balance to the new PF account by logging in to the EPF Member e-Sewa Portal and opting for the “One Member-One EPF Account (Transfer Request)” option in the “Online Services” drop-down menu.
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.
Q7. Is PAN mandatory for EPF withdrawal?
PAN is required during EPF withdrawal/settlement in order to keep away from tax deductions. If you fail to submit PAN, the tax deducted at source (TDS) can be as high as 30%.
Q8. 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 from ground to ground. 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 number of times you can raise a claim for PF withdrawal before retirement.
Q9. Can EPF withdrawal be done without PAN?
EPF can be withdrawn without PAN. However, if you do so, you will be liable for a TDS deduction of 30% from the claim amount.
Q10. When is EPF withdrawal taxable?
If you withdraw your EPF amount before 5 years, then you will be liable for TDS deduction of 10% (if you show your PAN at the time of withdrawal; if you fail to do so, then TDS to be deducted will be at 30%). However, if you withdraw your EPF after 5 years of continuous service, then it will be tax-free.
Q11. How much tax is applicable on EPF withdrawal?
If the EPF is withdrawn before 5 continuous years of service, then TDS at the rate of 10% is deducted. However, you will have to facilitate your PAN at the time of withdrawal. If you do otherwise, TDS at the rate of 30% will be deducted. Additionally, if the employee transfers funds from his PF account to NPS, he will not be liable to pay any tax.
Q12. How to show EPF withdrawal in ITR?
The withdrawals from EPF are considered income for the employee and should be mentioned under the head ‘Income from salary’. If you have withdrawn money from your EPF account, then you may report the same at the time of filing the ITR by selecting ‘Section 10(12) Recognized Provident Fund’ on the portal.
Q13. What is EPF withdrawal enquiry number?
Experts from EPFO can be reached at their Toll Free Customer Care Number- 1800 118 005.
Q14. How to withdraw EPF without the employer’s approval?
If you apply for EPF withdrawal online, then you don’t need to seek your employer for verification. Additionally, to be able to claim withdrawal online, you must have your PAN and Aadhaar linked with your UAN account.
Q15. Can EPF be withdrawn while working?
Yes, you can withdraw EPF while you are working. However, a few conditions must be met for the same. One can only withdraw his/her EPF amount before retirement if-
- he/she has to purchase/construct a house
- wedding of himself/herself and/or child
- any medical illness
Q16. How many times EPF can be withdrawn?
An employee can withdraw his EPF amount any time he wishes to. However, the maximum that can be withdrawn is either the total employee’s share or six times his wage, whichever is lower. The number of times that you can withdraw for a similar reason is 3.
Q17. Can EPF be withdrawn any time?
EPF can be withdrawn only under certain conditions such as medical illness, wedding of the EPF account holder or his children, or house purchase and/or construction.