1. When can EPF be withdrawn:
One may choose to withdraw EPF completely or partially. EPF can be completely withdrawn under any of the following circumstances:
a. When an individual retires from employment
b. When an individual remains unemployed for a period of 2 months or more. Here, it needs a mention that the fact that the individual is unemployed for more than 2 months has to be certified by a gazetted officer.
Further, complete withdrawal of EPF while switching over from one job to another without remaining unemployed for 2 months or more(i.e. During the interim period between changing jobs), will be against the PF rules and regulations and therefore illegal.
Partial withdrawal of EPF can be done under certain circumstances and subject to certain prescribed conditions which have been discussed in brief below:
1. Marriage – Limit for withdrawal is Up to 50% of employee’s share of contribution to EPF & No. of years of service criteria should be 7 years.
Other Conditions – For the marriage of self, son/daughter, brother/sister
2. Education – Limit for withdrawal is Up to 50% of employee’s share of contribution to EPF & No. of years of service criteria should be 7 years.
Other Conditions – For the education of either himself or his children after class 10
3. Purchase of land/purchase or construction of a house – Limit for withdrawal is For land – upto 24 times of monthly wages plus Dearness allowance & For house – upto 36 times of monthly wages plus Dearness allowance & No. of years of service criteria should be 5 years.
Other Conditions – The asset i.e. land or the house should be in the name of the employee or spouse or Jointly.
4. Home Loan Repayment – Limit for withdrawal is Upto a maximum of 90 %, from both employee’s contribution and employer contribution in Employee Provident Fund & No. of years of service criteria should be 10 years.
Other Conditions: –
i. The property should be registered in the name of the employee or spouse or jointly
ii. Withdrawal permitted subject to furnishing of requisite documents as called for by the EPFO relating to the housing loan availed,
iii. The accumulation in the member’s PF account (or together with the spouse), including the interest, has to be more than Rs 20,000.
5. Renovation of house – Limit for withdrawal is Upto 12 times of the monthly wages & No. of years of service criteria should be 5 years.
Other Conditions – The property should be registered in the name of the employee or spouse or jointly.
6. A little before retirement – Limit for withdrawal is Upto 90% of accumulated balance with interest & No. of years of service criteria will be implemented Once he reaches 57 years ( as per recent amendment).
2. Procedure for EPF withdrawal, Broadly, withdrawal of EPF can be done either by:
a. Submission of a physical application for withdrawal.
b. Submission of an online application.
1. Submission of a physical application
For this, one can download the new composite claim (Aadhar)/ composite claim form (Non-Aadhar).
The new composite claim form (Aadhar) can be filled and submitted to the respective jurisdictional EPFO office without the attestation of the employer whereas, the new composite claim form (Non-aadhaar) shall be filled and submitted with the attestation of the employer to the respective jurisdictional EPFO office.
One may also note, that in case of partial withdrawal of EPF amount by an employee for various circumstances as discussed in the above table, very recently, the requirement to furnish various certificates has been done away with and the option of self-certification has been introduced for the EPF subscribers.
2. Submission of an online application
Interestingly, the EPFO has very recently come up with the online facility of withdrawal which has rendered the entire process easier and less time-consuming. Prerequisite: To apply for withdrawal of EPF online through EPF Portal, make sure that the following conditions are met:
a). UAN (Universal Account Number) is activated and the mobile number used for activating the UAN is in working condition
b).UAN is linked with your KYC i.e. Aadhaar, PAN and bank details along with the IFSC code.
If the above conditions are met, then the requirement of attestation of the previous employer to carry out the process of withdrawal can be done away with.
Steps to apply for EPF withdrawal online:
Step 1: Go to the UAN portal
Step 2: Login with your UAN and password and enter the captcha.
Step 3: Then, click on the tab ‘Manage’ and select KYC to check whether your KYC details such as Aadhaar, PAN and bank details are verified
Step 4: After the KYC details are verified, go to the tab Online Services’ and select the option ‘Claim’ from the drop-down menu.
Step 5: The ‘Claim’ screen will display the member details, KYC details, and other service details. Click on the tab ‘Proceed For Online Claim’ to submit your claim form.
Step 6: In the claim form, select the claim you require i.e full EPF Settlement, EPF Part withdrawal (loan/advance) or pension withdrawal, under the tab ‘I Want To Apply For’. If the member is not eligible for any of the services like PF withdrawal or pension withdrawal, due to the service criteria, then that option will not be shown in the drop-down menu.
From India, Ghaziabad
252One may choose to withdraw EPF completely or partially. EPF can be completely withdrawn under any of the following circumstances:
a. When an individual retires from employment
b. When an individual remains unemployed for a period of 2 months or more. Here, it needs a mention that the fact that the individual is unemployed for more than 2 months has to be certified by a gazetted officer.
Further, complete withdrawal of EPF while switching over from one job to another without remaining unemployed for 2 months or more(i.e. During the interim period between changing jobs), will be against the PF rules and regulations and therefore illegal.
Partial withdrawal of EPF can be done under certain circumstances and subject to certain prescribed conditions which have been discussed in brief below:
1. Marriage – Limit for withdrawal is Up to 50% of employee’s share of contribution to EPF & No. of years of service criteria should be 7 years.
Other Conditions – For the marriage of self, son/daughter, brother/sister
2. Education – Limit for withdrawal is Up to 50% of employee’s share of contribution to EPF & No. of years of service criteria should be 7 years.
Other Conditions – For the education of either himself or his children after class 10
3. Purchase of land/purchase or construction of a house – Limit for withdrawal is For land – upto 24 times of monthly wages plus Dearness allowance & For house – upto 36 times of monthly wages plus Dearness allowance & No. of years of service criteria should be 5 years.
Other Conditions – The asset i.e. land or the house should be in the name of the employee or spouse or Jointly.
4. Home Loan Repayment – Limit for withdrawal is Upto a maximum of 90 %, from both employee’s contribution and employer contribution in Employee Provident Fund & No. of years of service criteria should be 10 years.
Other Conditions: –
i. The property should be registered in the name of the employee or spouse or jointly
ii. Withdrawal permitted subject to furnishing of requisite documents as called for by the EPFO relating to the housing loan availed,
iii. The accumulation in the member’s PF account (or together with the spouse), including the interest, has to be more than Rs 20,000.
5. Renovation of house – Limit for withdrawal is Upto 12 times of the monthly wages & No. of years of service criteria should be 5 years.
Other Conditions – The property should be registered in the name of the employee or spouse or jointly.
6. A little before retirement – Limit for withdrawal is Upto 90% of accumulated balance with interest & No. of years of service criteria will be implemented Once he reaches 57 years ( as per recent amendment).
2. Procedure for EPF withdrawal, Broadly, withdrawal of EPF can be done either by:
a. Submission of a physical application for withdrawal.
b. Submission of an online application.
1. Submission of a physical application
For this, one can download the new composite claim (Aadhar)/ composite claim form (Non-Aadhar).
The new composite claim form (Aadhar) can be filled and submitted to the respective jurisdictional EPFO office without the attestation of the employer whereas, the new composite claim form (Non-aadhaar) shall be filled and submitted with the attestation of the employer to the respective jurisdictional EPFO office.
One may also note, that in case of partial withdrawal of EPF amount by an employee for various circumstances as discussed in the above table, very recently, the requirement to furnish various certificates has been done away with and the option of self-certification has been introduced for the EPF subscribers.
2. Submission of an online application
Interestingly, the EPFO has very recently come up with the online facility of withdrawal which has rendered the entire process easier and less time-consuming. Prerequisite: To apply for withdrawal of EPF online through EPF Portal, make sure that the following conditions are met:
a). UAN (Universal Account Number) is activated and the mobile number used for activating the UAN is in working condition
b).UAN is linked with your KYC i.e. Aadhaar, PAN and bank details along with the IFSC code.
If the above conditions are met, then the requirement of attestation of the previous employer to carry out the process of withdrawal can be done away with.
Steps to apply for EPF withdrawal online:
Step 1: Go to the UAN portal
Step 2: Login with your UAN and password and enter the captcha.
Step 3: Then, click on the tab ‘Manage’ and select KYC to check whether your KYC details such as Aadhaar, PAN and bank details are verified
Step 4: After the KYC details are verified, go to the tab Online Services’ and select the option ‘Claim’ from the drop-down menu.
Step 5: The ‘Claim’ screen will display the member details, KYC details, and other service details. Click on the tab ‘Proceed For Online Claim’ to submit your claim form.
Step 6: In the claim form, select the claim you require i.e full EPF Settlement, EPF Part withdrawal (loan/advance) or pension withdrawal, under the tab ‘I Want To Apply For’. If the member is not eligible for any of the services like PF withdrawal or pension withdrawal, due to the service criteria, then that option will not be shown in the drop-down menu.
From India, Ghaziabad
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TAXABILITY ON EPF WITHDRAWAL.docx