The Provident Fund (PF) amount is basically a part of your salary that's deducted each month for depositing in your PF account. It is essentially a retirement benefits scheme available for all salaried employees. Upon leaving, you can apply for the PF withdrawal/ EPF claim. But, how to withdraw PF amount while working? What are the PF withdrawal rules? Where can the PF withdrawal forms be available? And how to withdraw PF amount from the previous company? let's find out!
In this article, let's find the answers to all these commonly asked questions.
#1. To make a PF withdrawal, an application needs to be made. The PF withdrawal forms are available over the EPFO official website.
#2. Keep the following things readily available: 11-Digit Universal Account Number, the purpose for PF withdrawal and the date of joining and terminating service.
#3. No declaration/ certificate is required in case the purpose of PF withdrawal is regarding repayment or new housing loan, site purchase, house construction, marriage or post-matric education,
#4. A medical certificate needs to be given by the doctor in the case illness treatment is your reason for PF withdrawal.
#5. If your reason for PF withdrawal is to purchase an equipment for the physically challenged, then a medical certificate may be required.
#6. For the taxation of PF withdrawal, TDS deduction is mandatory for those in service for less than 5 years. If the total balance is Rs. 50, 000, there's no TDS deduction.
#7. Merge all your PF accounts, as the total service years are counted including previous and current year employment.
#8. If you are planning to settle abroad, you can withdraw the entire PF amount.
(Image Courtesy: India Today)
#9. No documentation is required in case only a year is left for your retirement. You can also withdraw 90% of the amount.
#10. 12% of the employees' salary goes into their PF accounts.
#11. If your PF withdrawal happens after a period of 5-years of perpetual employment, there's no TDS deduction.
#12. To substantiate your EPF claim, you can make the withdrawals even after 2-months of employment discontinuance.
#13. Upon transferring Provident Funds to a National Pension System account, taxes won't be imposed.
EPFO has the provision of allowing employees to withdraw their Provident Funds even during their employment period. Such advances are permitted only under certain circumstances. Even the amount that you can withdraw depends on certain factors. And there aren't any interests involved as the PF scheme isn't a loan. In case of misuse, full recovery of the amount would be initiated.
(Image Courtesy: The Economic Times)
You will require the Universal Account Number (UAN) and Know Your Customer (KYC). If both the things are active, just fill in the PF withdrawal forms and submit the same to EPFO. Aadhaar, UAN, bank details and an active registered mobile number is required for submitting the EPF claim online.
More on: How to Check Your PPF and EPF Account Balance
If you have this question, "how can I get my PF amount," then let's clear your doubt. Earlier it was a painful process as the previous employer authentication was mandatory. But thanks to EPFO for the introduction of newer terms and conditions regarding the same. To bypass the employer's authentication signature, just use the UAN based Form 19 wherein your UAN is active and seeded with the KYC details. Just meet the criteria, and you'll be able to effortlessly make the PF withdrawal.
Liked what you just read? Want to read more such stuff? Let us know through the comment section below. We would love to hear from you!
(Featured Image Courtesy: Business Line)
Share
