What is Provident Fund?
Provident fund is a small portion of employee's remuneration made in order to contribute towards their retirement. It is deducted from basic pay of the employee every month i.e. 12% of basic pay.
EPF organization has taken a big step with the introduction of UAN number. UAN number is the mandatory number allotted to all the employees covered under provident fund act. It is mandatory for every employee to link his or her UAN number with EPF account. It remains same throughout the lifetime of employee's job tenure and there is no need to transfer your EPF every time you change a job. You can only withdraw your PF online if your Aadhaar is linked with your UAN number.
When an EPF can be withdrawn?
An EPF can either be withdrawn partially or completely. It can be withdrawn under the following circumstances –
It will be against PF rules and regulations and considered as illegal in case you completely withdraw your PF while switching from one job to another without remaining unemployed for 2 months or more.
Partial PF withdrawal can be done in the following circumstances but on the basis of certain prescribed conditions listed below –
|S.No.||Particulars of reason for withdrawal||Limit for withdrawal||No of years of service criteria||Conditions|
|1||Marriage||Up to 50% of employee’s share of contribution to EPF||7 years||For the marriage of self, son/daughter, brother/sister|
|2||Education||Upto 50% of employee’s share of contribution to EPF||7 years||For self-education or children education after class 10|
|3||Purchase of land / purchase or construction of a house||For Land – upto 24 times of monthly wages plus Dearness allowance
For House – upto 36 times of monthly wages plus Dearness allowance
|5 years||The asset should be in the name of the employee or spouse or jointly. For ex – Land or house|
|4||Home loan repayment||Upto a maximum of 90 %, from both employee’s contribution and employer contribution in Employee Provident Fund.||10 years||
1) The property should be registered in the name of the employee or spouse or jointly.
2) Withdrawal permitted subject to furnishing of requisite documents as called for by the EPFO relating to the housing loan availed.
3) The accumulation in the member's PF account (or together with the spouse), including the interest, has to be more than Rs. 20000.
|5||Renovation of house||Up to 12 times of the monthly wages||5 years||The property should be registered in the name of the employee or spouse or jointly.|
|6||A little before retirement||Upto 90% of accumulated balance with interest||Once he reaches 57 years ( as per recent amendment)|
Methods of PF Withdrawal
There are 2 ways by which you can easily withdraw your provident fund which are as follows–
PF Withdrawal Procedure by Submission of Physical Application
Visit this link - https://www.epfindia.gov.in/site_en/Downloads.php. You need to download and file the new composite claim form (Aadhaar) EPFO office without employer attestation. You can also download & file the new composite claim form (Non-Aadhaar) to the EPFO office with employer attestation.
PF Withdrawal Online
EPFO introduced a new facility of online EPF withdrawal with the help of UAN number. It is a very simple procedure of withdrawing PF amount and less time consuming too.
In order to apply for EPF withdrawal online on EPFO portal, make sure you meet all these conditions listed below –
- You must have a Universal account number (UAN) activated and your mobile number used for activating UAN should be in a working condition.
- Your UAN number must be linked with your KYC i.e. Aadhaar, PAN card, bank details, IFSC code.
Steps for PF Withdrawal Online
If both the conditions mentioned above are met, you can easily carry out the process of withdrawal by following the steps given below –
Step 1 – Go to EPFO portal - https://unifiedportal-mem.epfindia.gov.in/memberinterface/
Step 2 – Enter your UAN number, password and the Captcha.
Step 3 – Click on "Manage" tab shown on the top of the page in the menu bar and select "KYC" in order to check your KYC details such as Aadhaar details, PAN details, bank details. These details must be correct and verified.
Step 4 – After the verification of KYC details, click on "Online service" tab & choose claim (Form-31, 19 & 10C) from the drop down menu.
Step 5 - After clicking claim, all the member’s details, KYC details and other services details will be displayed on the screen. Enter last 4 digits of your account number in the required field and click on verify.
Step 6 – Click on “Yes” to sign the undertaking
Step 7 – Click on "Proceed for online claim"
Step 8 – Choose "Claim" from the claim form i.e. EPF part settlement (loan/advance) or pension withdrawal, EPF settlement under the tab "I want to apply for". In case you are not eligible for any of the above mentioned services, it will not be shown in the drop down menu.
Step 9 – Enter joining date, withdraw your funds by choosing "PF advance form - 31". Enter the purpose of withdrawal, amount required as well as the address of the employee.
Step 10 – Put a tick on self-declaration and submit your application.
You may be asked to submit scanned documents online for the EPF withdrawal. Then, the same EPF withdrawal request is approved by your employer within 15-20 days and the amount will be credited into your bank account.
Any Questions? Request a callback from our Tax Experts.