EPF or PF Withdrawal Rules 2023 for Home, Medical, Retirement

PF Withdrawal Rules 2024 – Employees Provident Fund, often known as Provident Fund, is a required retirement savings program. All employees of a qualified organization are subject to it. With the help of this scheme, the employees can rely on the post-retirement fund’s corpus. The PF withdrawal regulations have recently been updated to give customers simple access to their PF funds. Read below to get detailed information related to the PF Withdrawal Rules like highlights, Conditions, Limits, Procedures for PF Withdrawal Online, and much more.

PF

PF Withdrawal Rules 2024

The Provident Fund, or PF, is a contribution-based savings program where both the company and the employee make financial contributions to build a fund to cover post-retirement expenses. Subject to certain Provident Fund withdrawal regulations, the employee may access or withdraw the corpus created. Employees’ Provident Fund Organization, a statutory organization in India, manages the Employee Provident Fund, which provides financial security for Indian citizens working in the organized sector.

EPF contributions are primarily intended as post-retirement savings. The EPFO makes sure that all employees continue to be enrolled in the program and refrain from withdrawing money from their PF corpus. The EPFO has outlined a few EPF withdrawal regulations to achieve this. A number of the regulations governing withdrawals from the Provident Fund (PF) account have been updated by the Employees’ Provident Fund Organization (EPFO).

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EPF Withdrawal Rules Details in Highlights

Name PF Withdrawal Rules
Regulated by Employees’ Provident Fund Organization
Beneficiaries Employees
Official Website https://www.epfindia.gov.in/

Checking PF Withdrawal Rules

  • Unlike a bank account, the EPF account does not allow withdrawals while a person is employed. A long-term retirement savings plan is the EPF. Only after retirement is the money able to be withdrawn.
  • In the event of an emergency, such as a medical emergency, the acquisition or construction of a home, or further education, a partial withdrawal from EPF accounts is permissible. Depending on the reason, partial withdrawal is subject to restrictions. A partial withdrawal request can be made electronically by the account holder.
  • 90% of the EPF corpus may be withdrawn by an employee up to one year before retirement, providing they are at least 54 years old.
  • Although early retirement is not permitted until the person is 55 years old, the EPF corpus can only be taken after retirement.
  • If a person is laid off before retirement because of a lockdown or retrenchment, the EPF corpus may be withheld.
  • Under the new regulation, EPFO permits the withdrawal of 75% of the EPF corpus following a month of unemployed. After finding new employment, the remaining 25% can be deposited into a new EPF account.
  • Before taking a withdrawal from their EPF, members must declare themselves unemployed.
  • Before, after two months of unemployment, 100% of the EPF could be withdrawn.
  • When the EPF corpus is prematurely withdrawn, tax is deducted at the source. TDS is not necessary, nevertheless, if the total amount is less than Rs. 50,000. Keep in mind that the 10% TDS rate will apply if an employee submits their PAN with the application. If not, the price is 30% plus VAT.
  • Form 15H/15G is a declaration form that claims that TDS can be avoided since a person’s whole income is not taxable.
  • Employees are no longer required to wait for employment authorization before withdrawing EPF. If the employee’s UAN and Aadhaar are linked and the employer has given their approval, it can be done immediately through the EPFO. You can check your EPF withdrawal status online.
  • Under certain restrictions, tax exemptions are available for withdrawals of EPF corpus. Tax exemption on EPF corpus is available only if an employee contributes to the EPF account for 5 straight years. If there is a break in contributions to the account for five consecutive years, the EPF amount becomes taxable. The entire EPF sum will therefore be regarded as taxable income for that fiscal year.

PF Balance Check Online

Conditions for Withdrawal

Some of the conditions for PF Withdrawal are as follows:

  • When Employees Continue to be Under Service:
    • Whenever an employee wants to obtain an advance from the PF account, they must submit the Composite Claim Form. Also, customers must complete Form 14 if they want to use their PF account to pay for their LIC coverage.
    • For the pension fund, employees above the age of 58 must submit Form 10D. Also, they will be qualified to earn a monthly pension following the completion of ten years of service. Please be aware that if you haven’t accrued ten years of qualifying service, you must submit the Composite Claim Form.
  • Switching Job by Employee:
    • An employee’s EPF account will very certainly be transferred when they change jobs. They must submit a Form 13 application for it. Yet, an employee may file a claim with the PF and pension funds if they leave one company but do not transfer to another. But only the Composite Claim Form, either with Aadhaar or without, can be used to make this claim.
    • A worker over the age of 58 who has accrued ten years of service eligibility may file a pension claim using Form 10D. They must also utilize the Composite Claim Form to submit a pension claim.
  • When Workers Quit Companies Due to Physical Disability:
    • With Form 10 D, employees can submit a claim for a monthly pension.
    • Using the Composite Claim Form (Aadhaar/Non-Aadhaar), employees are qualified to submit a PF claim.
    • Workers who are above 58 and have less than ten years of qualifying service may file claims for pension and PF benefits. They must use the Composite Claim Form (Aadhaar/Non-Aadhaar) for this.
  • When Employees Pass Away While Serving:
    • There may be instances where an employee passes away even before turning 58. The beneficiary, nominee, or successor can then apply for the PF settlement using Form 20. They must submit Form 10D to get a pension payment each month. Also, they must submit Form 5IF for the Employees’ Deposit Linked Insurance (EDLI).
    • The employee’s nominees may also file claims if they passed away after 58 years and after finishing ten years of qualifying service. They must use Form 5IF for EDLI amount withdrawal and Form 20 for PF withdrawal. Also, they must complete Form 10D if they want to claim their monthly pension.
  • When Workers Pass Away After Retirement
    • Form 20 can be used to submit PF claims by a dead employee’s heir, nominee, or beneficiary. Also, they must use Form 10D to claim the monthly pension.
    • The beneficiary is entitled to the pension fund even if the employee hasn’t accrued ten years of qualifying service after turning 58. However, they must do so by submitting an Aadhaar/Non-Aadhaar Composite Claim Form.

PF Withdrawal Limits

Reasons Eligibility Withdrawal Limit
Marriage of self /daughter/son/ sister/ brother or for children’s post-matriculation education Minimum 84 months of service Up to 50% of the EPF account
Housing loan for building a house or adding on, buying a lot, or renting a flat Minimum 60 months of service Up to 36 months of his or her base pay plus DA, the sum of the employee and employer portions plus interest, or the full cost of the home
Medical expenses/ purchase of equipment by physically handicapped /Natural Calamity/closure of factory/cut in electricity in the establishment No minimum service tenure His/her basic and DA pay for up to six months, or the full contribution
One year before retirement should be older than 54 years old. Up to 90% of his/her EPF amount

Procedure for Online PF Withdrawal

Users can follow the below-given steps for Online PF Withdrawal

  • Firstly, visit the official websiteof the Employees’ Provident Fund Organization (EPFO) Portal
  • The homepage will display on the screen
Online
  • Click on the Services option followed by For Employees
  • A new page will display on your screen
  • Now, click on the Member UAN/Online Service (OCS/OTCP) option under the services tab
  • A new page will display on your screen
  • Enter your UAN, password, and the Captcha code
  • Now, click on the Login button to get logged in to your registered account
  • The dashboard of your account will open on the screen
  • Now, under the Manage tab, click on the KYC option
  • A new page will display on your screen
  • Now, under the Digitally Approved KYC section, check all your KYC details
  • Ensure that all your details are correct
  • select the Online Service link from the top menu to proceed with the withdrawal, If all of the KYC information is accurate,
  • Click on the CLAIM FORM-31, 19 & 10C option
  • ONLINE CLAIM (FORM 31, 19 & 10C) form will display on the screen
  • Enter your registered bank account number’s last four digits now, and double-check it.
  • A Certificate of Undertaking will be created once the bank account has been successfully verified.
  • Finally, select the option to “Proceed for Online Claim.”
  • To withdraw money online, select the PF ADVANCE (FORM-31) option.
  • Choose a justification for the claim from the drop-down menu next to the “Reason for which advance is required” option. The fields for the employee’s address and the advance sum must also be completed. Now, click on the checkbox and submit your withdrawal application
  • Next, upload the necessary documentation, depending on the type of withdrawal.
  • If the employer agrees to the withdrawal request, the withdrawal money will be deducted from the EPF account and paid to the relevant bank account. Once the claim has been settled, you will receive an SMS notification on your registered cellphone number.

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