EPF Withdrawal : The Employees’ Provident Fund (EPF) scheme rules allow you to withdraw from the EPF account for various factors. You are able to withdraw money from your EPF account upon retirement after attainting the age of 55 years. You can also withdraw cash from your EPF account for various purposes before retirement.
These include purchasing/constructing a home, child’s wedding and education, and funding financial emergencies caused because of the coronavirus-induced lockdown. You are also permitted to submit a claim because of job loss or after you leave your work.
Before submitting an EPF claim, you need to ensure the prescribed conditions under the EPF scheme are fulfilled.
Eligibility Conditions for EPF Withdrawal
Following are the conditions that a worker must fulfill in order to be eligible for withdrawing EPF-
- Money in the EPF account could be withdrawn only after retirement. EPFO considers early retirement just after the person has spanned 55 years of age
- Partial withdrawal of EPF is permitted only in the case of medical emergency, house purchase or structure, or greater education
- EPFO enables withdrawal of 90 percent of the sum 1 year before retirement
- As per the new rule, just 75% of the corpus could be withdrawn after 1 month of unemployment. The rest will be transferred into the new EPF account after gaining employment
- Employees do not need to wait for an endorsement from their company for withdrawing their EPF. By linking UAN and Aadhar for your EPF account, you do get the approval online
While making the claim online, you must possess –
- An energetic UAN number
- Bank details connected with UAN
- PAN and Aadhar details seeded into EPF database
Conditions to withdraw PF online
In the event of emergencies such as hospitalisation, wedding or education of your child, home renovation and repairs, you might need rapid access to these funds. Instead of taking a loan, you can withdraw funds from your PF in total or in part. Just remember it to commence the PF withdrawal procedure you’ll need to maintain your Universal Account Number (UAN) handy.
So as to withdraw your PF amount using EPFO portalsite, you will need to ensure the following:
- UAN has to be triggered
- Aadhar number must be linked and confirmed with UAN
- The bank account in which you want to obtain the sum, must be just like the bank account filed with your Aadhaar.
- In case of any changes or modifications, you can finish the eKYC process, and upgrade your details before you submit a claim.
How to Track EPF Claim Status
EPF withdrawal can be done through the UAN member portal site. The member must first activate his UAN and then log into the portal site for online withdrawal. The portal can also be used to transfer money from his old PF account to a different account. Other online services like eKYC, contact information update, etc. may also be carried out by means of this portal.
EPF withdrawal standing can be checked online in the EPF member portal. You need to log in to the portal online and select the’Track Claim Status’ from the’Online Services’ section. Be aware that you won’t need to enter any reference number to look at the status; it will be shown on the display automatically.
How to withdraw PF online with UAN?
Step 1: Visit Member e-Sewa portal https://unifiedportal-mem.epfindia.gov.in/memberinterface/ on the EPFO portal
Step 2: Log into your account by entering UAN, password and captcha code
Step 3: A new tab will open where you will be asked to enter the correct bank account number (seeded with UAN). Click on verify.
Step 4: Once your bank account particulars are confirmed, you will be required to confirm terms and conditions as stated by the EPFO.
Step 5: Click on‘Proceed For Online Claim’.
Step 6: From the drop-down menu, then you’ll have to select the main reason behind applying for withdrawal from your EPF account. Only those options will be observable for which you’re entitled.
Suppose, even if you are applying for progress for purchase of a house, then make certain you have completed five years of EPF membership along with other specified requirements. In the same way, in the event where the claim is filed due to job-loss, then ensure that date of exit is upgraded in EPFO records prior to submitting a claim.
Step 7: After the reason behind withdrawal/advance is chosen, you will have to input your complete address. Do make sure that the scanned copy of cheque/ passbook uploaded is as per the instructions provided by the EPFO. Pick the stipulations once again.
Step 9: A one-time password (OTP) will be sent to your cellular number enrolled with Aadhaar. Enter the OTP from the mandatory box.
Advantages of EPF Withdrawal Online
Creating an online EPF withdrawal claim has a number of benefits, some of which are listed under –
- Hassle-free Withdrawal- The online procedure of EPF withdrawal claim prevents you from the frustration 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 this program. This processing period will further be reduced as per the government programs.
- No need to see the previous employer for affirmation – Unlike offline claims, wherein you have to get your documents attested by the employer, online claims become confirmed mechanically. This is particularly helpful for people who have moved to a new city as it prevents them from the problem of mailing the files or travelling long distances.
How to Apply for Home Loan According to EPF Accumulation?
Step 1: Apply for a Mortgage through the home society to the EPF Commissioner from the format specified in Annexure 1.
Step 2: The Commissioner will issue a certificate which states the monthly donation for your EPF account over the previous 3 months. Alternatively, you may take a printed copy of your EPF passbook to show the previous three months contribution.
Step 4: EPFO gets the payment into the housing society directly.
Points to Think about Before Applying for EPF Withdrawal
- Provident Fund withdrawn within 5 Decades of support is taxable
- If You’re changing your job, then you don’t have to withdraw your PF account; you should transfer your PF amount into the new account rather
- You’re not allowed to withdraw your PF balance of a job where you are currently functioning
- Advance or partial withdrawal of PF balance is allowed only under specific conditions
Prior to Applying to get EPF withdrawal, you need to –
- Update your own Aadhar amount in UAN portal
- Get your Aadhar authenticated by your company
- Link your Aadhar to UAN
- Fill the EPF withdrawal form online
- A Person can withdraw 90 percent of his available PF equilibrium after the age of 54 years
EPF withdrawal through program
Employees availing EPF withdrawal online have an option to use Unified Mobile APP for New Governance (UMANG) for a convenient withdrawal process on their cellular phones. The simplified online application process together with services provided by UMANG are supposed to make the EPF withdrawal online a readily accessible choice for individuals who require extra funds to finance certain requirements accepted by the EPFO.
Folks can, however, file for an EPF withdrawal offline by printing out a composite claim form and supplying these details. Also, self-attested files together with the company’s acceptance attestation have to be submitted to the regional EPFO commissioner.
