Employee Provident Fund (EPF) is a government-backed retirement savings scheme for employees in India. It is regulated under the Employees’ Provident Funds and Miscellaneous Provisions Act by the Employees' Provident Fund Organisation (EPFO). This article will guide you through the process of EPF withdrawal online, and provide an overview of the documents required, the eligibility criteria, and more.
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What is EPF?
EPF is a mandatory retirement savings scheme for employees in eligible organisations. As per the EPF rules, employees are required to contribute 12% of their basic pay to this fund every month. The employer matches this contribution, and the total amount, along with the accumulated interest, forms the retirement corpus. This article will guide you on how you can withdraw from this fund prematurely or post-retirement.
Benefits of EPF
The primary benefit of the EPF scheme is the financial security it provides during retirement. The fund serves as a safety net, ensuring that employees have a substantial corpus to fall back on post-retirement. The fund also allows for premature withdrawals under certain conditions, making it a useful resource during emergencies.
What is UAN?
The Universal Account Number (UAN) is a crucial component of the EPF scheme. The UAN is portable throughout an employee's lifetime and links multiple Member Identification Numbers (Member IDs) allotted to a single member under a single UAN. This ensures that employees can manage their EPF accounts and withdraw funds without complications when switching jobs.
Eligibility for EPF Withdrawal
While the primary purpose of the EPF account is to provide financial stability post-retirement, the EPFO allows premature withdrawals under specific circumstances. These include situations like medical emergencies, home purchase or construction, marriage, education, and more. However, complete withdrawal is only permitted under two scenarios - retirement and unemployment.
When Can You Withdraw EPF?
There are two types of EPF withdrawals - complete and partial.
Complete Withdrawal
Complete withdrawal is allowed under the following circumstances:
- Upon Retirement: The entire EPF amount can be withdrawn at retirement.
- During Unemployment: If an individual is unemployed for more than a month, they can withdraw 75% of the total EPF amount. If the unemployment period extends beyond two months, they can withdraw the remaining 25%.
Partial Withdrawal
Partial withdrawal of the EPF balance is allowed under specific circumstances. These include medical purposes, marriage, education, purchase of land or house, home loan repayment, and house renovation.
How to Withdraw PF Amount with UAN Online?
To withdraw your EPF amount online, the UAN must be activated and linked with your KYC i.e., Aadhaar, PAN, bank details, and the IFSC code. If the UAN and KYC details are verified, there is no need for employer attestation for the withdrawal application.
Steps for EPF Withdrawal Online
Here are the steps to withdraw your EPF amount online using the UAN:
- Visit the UAN Portal: Navigate to the official UAN portal.
- Login to the Portal: Use your UAN and password to login. Ensure that the captcha code is entered correctly.
- Verify KYC Details: Click on the ‘Manage’ tab and select ‘KYC’ to verify whether your KYC details such as Aadhaar, PAN, and bank details are correctly linked.
- Initiate the Claim Process: After verifying the KYC details, click on the ‘Online Services’ tab and select ‘Claim (Form-31, 19, 10C, & 10D)’ from the drop-down menu.
- Verify Bank Account Details: Enter your bank account number and click on ‘Verify’.
- Certificate of Undertaking: Click on ‘Yes’ to sign the certificate of undertaking, then proceed.
- Proceed for Online Claim: Click on ‘Proceed for Online Claim’.
- Select Claim Type: Choose the type of claim you want to make under the ‘I Want To Apply For’ section.
- Fill in Claim Details: If you selected ‘PF Advance (Form 31)’, specify the purpose of the advance, the amount required, and your address.
- Submit Application: Click on the certificate, submit the application, and if prompted, upload the necessary documents.
Once the application is submitted successfully, you can track the status of your claim by logging into the UAN portal.
Documents Required for EPF Withdrawal
To withdraw your EPF amount, the following documents are required:
- Universal Account Number (UAN)
- Bank account information
- Identity and address proof
- Cancelled cheque with IFSC code and account number
EPF Withdrawal Taxability
The tax implications on EPF withdrawal depend on the duration of service. If you have made contributions to the EPF account for five consecutive years, the withdrawal is tax-free. However, if there is a break in the contribution for five continuous years, the EPF withdrawal amount becomes taxable for that financial year.
If an employee withdraws more than Rs. 50,000 from their EPF account before the five-year period, TDS is deducted. However, if the total amount is less than Rs. 50,000, no TDS is applied.
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