EPF can be partially or completely withdrawn. Complete withdrawal is allowed when an individual retires or if he/she remains unemployed for more than 2 months. Whereas, partial EPF withdrawal is allowed under certain circumstances including medical purposes, marriage, home loan repayment, etc. You can make a withdrawal claim by filling the EPF withdrawal form online. However, you can use the online withdrawal claim facility only if your Aadhaar is linked with your UAN. Read on to know all about EPF withdrawal procedure.
|Also read about:|
|Eligibility Conditions for EPF Withdrawal||Documents Required for EPF Withdrawal||EPF Withdrawal Rules: When can you withdraw|
|Benefits of EPF Withdrawal Online||Taxation on EPF Withdrawal||How to Check EPF Claim Status|
EPF Withdrawal Online Procedure
In order to withdraw EPF online, you must make sure that your UAN is activated and it is linked with your KYC (Aadhaar, PAN and bank details). If you meet this condition, you can follow the procedure given below to withdraw your EPF 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 & 10D)’ from the drop-down menu to select the relevant EPF advance withdrawal form.
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 EPF claim 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Step 10 – Your employer has to approve your withdrawal request after which the money will be withdrawn from your EPF account and deposited in the bank account mentioned at the time of filling the withdrawal form.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 is credited in 15-20 days.
Also Read: EPF Withdrawal Form 19: How to Fill for Final PF Settlement Online & Offline using UAN
|EPF Withdrawal: News Update (1st June 2021)|
|EPFO allows members to withdraw money from EPF Account twice to meet COVID-19 Emergency |
The labour ministry has announced that EPF members can now withdraw twice from their EPF account to meet the emergency expenses arising due to the Coronavirus pandemic. Members can avail a non-refundable withdrawal of up to 75% of the amount available in their EPF account or 3 months of their basic wages and dearness allowance, whichever is lower. Furthermore, EPFO is set to settle these withdrawal claims within 3 days and has also created an auto-claim settlement process for members whose KYC is complete in all respects.
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EPF Withdrawal Offline Procedure
To withdraw your PF, you can visit the respective EPFO office and submit a duly filled Composite Claim Form. There are two types of Composite Claim Form- Aadhaar and Non-Aadhaar. The Aadhaar Form does not require any attestation from the employer whereas if you are using the Non-Aadhaar Form, you will have to get the same attested by your employer before submitting to the jurisdictional EPFO office.
|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 single EPF withdrawal form – the Composite Claim Form, which serves the purpose of all three forms.|
Read more on EPF Composite Claim Form
Eligibility Conditions for EPF Withdrawal
Following are the conditions that an employee must meet in order to be eligible for withdrawing EPF-
- The total amount 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 a medical emergency, house purchase or construction, or higher education. The EPF Composite Claim Form has now replaced EPF withdrawal Form 31 which was earlier used for partial withdrawals.
- 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, they can get approval online
- While making the EPF claim online, you must have-
- An active UAN number
- Bank details linked with UAN
- PAN and Aadhar details seeded into EPF database
Documents Required for EPF Withdrawal
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.
EPF Withdrawal Rules – When can you Withdraw using EPF Withdrawal Form
Employees can withdraw their EPF corpus only under the following conditions-
|Condition||Service Tenure||Withdrawal Amount||Other Limitations|
|Construction/Purchase of house||The employee must be in continuous service for 5 years||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)||Only the PF account holder and his/her spouse can apply for withdrawal|
|Medical treatment||No limitation||An amount equal to the employee’s share with interest or 6 times his monthly salary, whichever is lower can be withdrawn.||The PF account holder, his/her parents, spouse or children can apply for withdrawal.|
|Repayment of home loan|
|The employee should be in continuous service for 3 years||90% of the amount can be withdrawn||Only the PF account holder and his/her spouse can apply for withdrawal|
|Renovation of house||The employee should be in continuous service for 5 years from the date of completion of construction of the house|
|An amount equal to 12 times the monthly salary can be withdrawn||Only the PF account holder and his/her spouse can apply for withdrawal|
|Wedding||An employee must be in continuous service for 7 years||50% of the employee’s contribution with interest can be withdrawn||The PF account holder, his siblings and/or children can apply for withdrawal|
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EPF Withdrawal Limit
EPF withdrawal limit depends on the purpose for which the withdrawal is claimed. The withdrawal limit is mentioned below:
|EPF Withdrawal Purpose||EPF 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|
Benefits of Withdrawing EPF using EPF Withdrawal Form Online
Making an online EPF withdrawal claim has a number of benefits as shown 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 are verified automatically. This is especially helpful for people who have moved to a new city as it saves them from the trouble of mailing documents or travelling long distances.
Taxation on EPF Withdrawal
The corpus from EPF withdrawal is exempt from taxation; however, only under certain conditions, which are as follows-
|EPF Withdrawal Scenario||Taxation Rules|
|Employee withdraws EPF amount of more than Rs. 50,000 before completing 5 continuous years of service||TDS is applicable at 10% if the employee furnishes his PAN|
In case no PAN card is furnished, TDS @30% plus tax will be applicable
If the employee furnishes Form 15G/H, no TDS is deducted.
|Employee withdraws EPF amount after completion of 5 years of continued service||No TDS applicable. Since such withdrawals are fully exempt, employees need not show the same in their ITR.|
|Employee chooses to transfer funds from their PF account towards the National Pension Scheme (NPS)||No TDS applicable|
Other important points related to EPF withdrawal taxability:
- 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
- Employees need to fill Form 15H/15G as a declaration if their total income is not taxable
- 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 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.
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.
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 log in to the EPF member portal using your UAN and password.
What is the online procedure for EPF withdrawal from 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.
Read more about EPF Balance Check
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%.
What is the purpose of EPF withdrawal Form 31 and EPF withdrawal Form 19?
EPF withdrawal Form 19 is filled for claiming final PF settlement, whereas, EPF withdrawal Form 31 is for partial EPF withdrawal. You can either fill up the EPF withdrawal Form 19/Form 31 online or download the EPF withdrawal Form PDF and submit the same offline. However, the new EPF new withdrawal form or EPF Composite Claim Form has replaced EPF Forms 19, 10C and 31. This Composite Claim Form can be filled both online and offline
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.
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.
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.
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.
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.
What is EPF withdrawal enquiry number?
EPFO Toll-Free Customer Care Number – 1800 118 005.
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.
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
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.
Can EPF be withdrawn any time?
EPF can be withdrawn only under certain conditions such as medical illness, the wedding of the EPF account holder or his children, or house purchase and/or construction or on retirement.