Withdraw EPF Balance?
Discover a hassle-free way to withdraw from EPF online! Follow our comprehensive step-by-step guide for a smooth and easy Provident Fund withdrawal process.
What is an EPF account and why it exists?
An EPF account stands for an Employee Provident Fund account. It’s a retirement savings scheme in India that works like this:
- It is managed by the Employees’ Provident Fund Organisation (EPFO), a government body.
- Both you and your employer contribute a fixed amount (typically 12% of your basic salary) towards the fund monthly.
- This creates a retirement corpus for you over the years.
There are two main reasons why EPF exists:
- Provides financial security after retirement: By regularly saving throughout your working life, you’ll have a decent amount accumulated to support yourself after retirement.
- Tax benefits: Contributions towards EPF are tax-deductible under the Income Tax Act, reducing your taxable income. Additionally, the interest earned and withdrawals at maturity are generally tax-free.
Overall, EPF is a way to ensure you have a steady stream of income after retirement and offers some tax advantages while you save.
What are the reasons for EPF withdrawal?
You can withdraw some or all of your EPF funds for various reasons, but there are rules around when and how much you can take out. Here are some common reasons for EPF withdrawal:
Medical emergencies: You can withdraw your employee contribution (along with interest) or up to six times your monthly salary (whichever is lower) to cover medical treatment costs for yourself, spouse, children, or parents. There’s no minimum service requirement for this.
Unemployment: If you’re unemployed for at least one month, you can withdraw up to 75% of your EPF corpus. After two months of unemployment, you can take out the remaining 25%.
House-related needs:
- Down payment or EMI for home loan: You can withdraw up to 90% of your EPF corpus to help with a house purchase or loan repayment, provided you’ve been a member for five years.
- House construction or renovation: Withdrawal for this purpose might be allowed after a certain period from initial house construction (rules may vary).
How to withdraw from EPF?
Employee Provident Fund (EPF) is a scheme by government for the employees to build a corpus from their salary for long-term use like retirement benefits. It is framed as per the Employee Provident Fund act of 1952. You and your employer have to contribute a specific percentage of your basic salary (12%) every month. While the PF account number may change everytime you switch jobs, the consolidated EPF account identified by UAN number remains constant. It is through UAN number, you can check the PF details like amount accumulated etc.
What is required for EPF withdrawal online?
At times, during emergency situations, you may require quick access to funds. Instead of going for a loan, you can withdraw amount from the accumulated PF corpus. All you would require is your UAN number and few steps to follow to get your amount.
To withdraw from the EPF account, you must ensure you have the following:
- UAN Number
- Aadhar linked and verified with UAN
- Bank account where you want to receive the amount
- Cancelled cheque leaf or bank statement
- For any changes or modifications, you must complete the e-KYC before you submit a claim
Steps to withdraw PF amount?
Step 1: Sign in to the UAN Member Portal with your UAN and Password
Step 2: Click on online services tab and select Claim (Form-31, 19,10C & 10D)’ from the drop-down menu to select the withdrawal form
Step 3: Member details will be displayed. Enter the last four digits of your bank account number and click on verify
Step 4: Click on yes to sign the certificate of undertaking and proceed
Step 5: Under the ‘I Want to Apply For’ option, select Full EPF Settlement, EPF Part Withdrawal, or Pension Withdrawal, as required.
Step 6: Select the purpose for which you are withdrawing the EPF amount
Step 7: Enter the amount you would like to withdraw
Step 8: Upload the scanned documents required for approval. You will need to accept further terms and conditions before requesting for a OTP
Step 9: Update the OTP in the forum and your application will be submitted
Once you have submitted your EPF claim, you can track the status of EPF claim under track claim status. EPF authorities will match your data with the data in the records, upon successful completion of verification, the will process the application and credit the amount to your bank account linked with UAN.
How to withdraw EPF Offline?
To withdraw EPF offline, you must visit the respective EPFO office and submit a duly filled application. There are two types of composite forms – Aadhar and Non-Aadhar. The Aadhar form doesn’t require any attestation from the employer; however, if you are using the non-aadhar form, you will have to get the same attested by the employer. As per old withdrawal process, you will have to get your Identity attested by bank manager or a gazette officer.
Rules for withdrawing EPF in 2023
- The EPF withdrawal cannot be done whenever you want like withdrawal from a bank. It can be done only for a specified purpose as indicated
- In the event of medical emergencies, home renovation, or other personal reasons, partial withdrawal of EPF amount is allowed. The withdrawal amount allowed varied on the reason selected
- Early retirement is not recognized until the age of 55. However, EPFO allows a person who is 54 withdraw upto 90% of the EPF fund
- If an individual faces unemployment for more than two months due to lockdown or other reasons, they have to declare unemployment to withdraw EPF corpus
- According to old, 100% of amount accumulated is applicable for withdrawal. However, as per the new rules, you are allowed to withdraw 75% of the corpus amount built after 1 month of unemployment, and the rest 25% will be transferred to your new account after you get a job
- The withdrawn amount is tax exempt in specified instances. Tax exemption is applicable when the employee has a continuous service of 5 years without any break. However, if there is a break in EPF contribution, the EPF amount would be taxable for that particular span
- If the withdrawal amount is less than Rs. 50000, no TDS is applicable. It’s important for the employees to provide PAN with the application. The applicable TDS rate is 10% with PAN updation, and 30% + tax for instances without PAN.
- Employees no longer need approval from their employers to apply for PF withdrawal online provided they have UAN and Aadhar linked
Documents required for making EPF withdrawal
Following documents are required while making EPF withdrawal:
- Composite Claim form
- Two revenue stamps
- Bank Statement
- ID proof
- Address Proof
- Cancelled cheque with visible IFSC code and a/c no
- Personal information must match with the ID proof
EPF Withdrawal limit
| EPF Withdrawal Purpose | EPF Withdrawal Limit |
| Medical Purpose | Six times the monthly salary |
| Wedding | 50% of PF combination |
| Home Loan repayment | 90% of EPF corpus |
| Home Renovation | 1 year of monthly salary |
| Retirement | Full EPF balance |
| Unemployment | 75% of 1st month and 25% on the second month of unemployment |
Benefits of Withdrawing EPF online
Hassle-free withdrawal – The online process enables to place a withdrawal request from the place where you are instead of having to visit the EPF office
Low processing time – When you apply for EPF withdrawal online, you will get the amount credited to your account within two weeks, which the government plans to reduce further
No need for employer verification – Unlike offline claims, wherein you require the assistance of employer in attesting documents, online claims are processed automatically.