When you opt to withdraw PF (provident fund), you can easily manage your financial requirements using the accumulated corpus. There are different types, such as:
- The Employees’ Provident Fund
- Public Provident Fund
By withdrawing from either of these funds, you can access financing for:
- Higher education
- Wedding expenses
- Medical expenses
- Home purchase and renovation
Read on to know how much amount can be withdrawn from PF, its criteria, rules, eligibility factors and more.
Criteria for Partial PF Withdrawal
Here are a few circumstances that allow partial PF withdrawals:
- Unemployment: You can withdraw up to 75% from your PF account if you are unemployed for 2 months.
- Education: You can claim a 50% PF advance withdrawal limit to pay your children’s education expenses after they complete the 10th standard. This is applicable if you have contributed at least 7 years to the PF account.
- Wedding Costs: After 7 years of contribution towards the EPF account, you can withdraw 50% of the funds to cover the family wedding expenses.
- Medical Emergency: You can withdraw six times your monthly basic salary or the total employee contribution along with interest to manage your medical costs.
- Purchase Land/ House or Renovate Your Home: Premature withdrawal is allowed after 5 years for buying or renovating your home.
Also Read: EPF interest rate 2023
Rules for PF Withdrawal in 2024
The following criteria apply in the case of Employee provident funds:
- PF withdrawal is not allowed until you are employed
- Employees after 55 years of age can make withdrawals after retirement, with 90% of withdrawals allowed 1 year before retirement
- You can only claim up to 75% of the PF advance withdrawal limit after 2 months of unemployment and the remaining amount after 2 months
- If you make a withdrawal above ₹50,000 within 5 years of opening the EPF account, it will attract 10% TDS with PAN and 30% without a PAN card
For the public provident fund, these are the rules:
- Partial withdrawals are only allowed from the seventh year onwards
- Subscribers can only make one withdrawal in a year
- Only up to 50% of the total balance may be withdrawn, subject to certain stipulations
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Apply for PF Withdrawal Online
Following these steps, you can raise a claim for PF withdrawal online:
On the EPFO Portal
- Step 1: Visit the EPFO Member e-Sewa portal
- Step 2: Log in with your UAN (Universal Account Number), password and captcha code
- Step 3: Verify your KYC under the ‘Manage’ tab
- Step 4: Once verified, select the ‘Claim (Form-19, 31, 10C and 10D)’ option under the ‘Online Services’ tab
- Step 5: On the new web page, enter your bank account number and click on ‘Verify’
- Step 6: Choose the ‘Yes’ option after this step
- Step 7: Select the ‘Proceed for Online Claim’ tab
- Step 8: Choose ‘PF Advance (Form 31)’ under the ‘I Want to Apply For’ option for partial withdrawal
- Step 9: Select the reason for making the claim from the ‘Purpose for Which Advance is Required’ drop-down menu
- Step 10: Enter the advance amount, scanned documents and the employer’s address
- Step 11: Submit the application
On the Unified Mobile APP for New Governance (UMANG)
- Step 1: Log in to the UMANG app
- Step 2: Search EPFO
- Step 3: Select the ‘Employee Centric’ tab
- Step 4: Choose the ‘Raise Claim’ option
- Step 5: Enter your UAN
- Step 6: Verify OTP
- Step 7: Select the withdrawal type and submit a claim
For a Deceased Person
- Step 1: Visit the EPFO Member e-Sewa portal
- Step 2: Select the ‘Death Claim Filing by Beneficiary’ option
- Step 3: Enter UAN, name, Aadhaar and date of birth of the beneficiary along with the captcha code
- Step 4: Click on the ‘Get Authorised Pin’
- Step 5: Enter the OTP received on the beneficiary’s mobile number to file the claim
Here’s how you can withdraw the provident fund offline:
- Fill out a withdrawal form
- Submit the necessary supporting documents to the regional EPFO commissioner
- Collect the cheque or wait for funds to be disbursed to the registered bank account
Taxes on PF Withdrawal in India
The amount that you contribute towards your PF is not taxable. However, the interest on your PF is taxable because of the following reasons:
- It is considered ‘Income from other sources’
- The employer’s contribution towards your PF is also taxable since it falls under the ‘Salary’ head
The PF amount is tax-free on withdrawal if you withdraw it after 5 years of continuous service. If you wish to withdraw more than ₹50,000 before 5 years, the amount will attract:
- A TDS of 10% with PAN
- A TDS of 30% without PAN
How to Check PF Withdrawal Status
Follow these steps to check the withdrawal status:
- Step 1: Visit the official portal of EPFO and log in
- Step 2: Click on the ‘Our Services’ tab and from the drop-down menu and select the ‘For Employees’ tab
- Step 3: Click on the ‘Know Your Claim Status’ option
- Step 4: Enter your UAN and the Captcha code
- Step 5: Enter the required details like the state of the PF office, establishment code, respective PF office and PF number
- Step 6: Click on ‘Submit’ to check the withdrawal status of your PF
Keeping all these factors in mind can help you decide the right time to withdraw the amount. While this may seem like a good idea, remember that it takes away from your final corpus. As such, you can opt for alternatives like an Instant Personal Loan from Fibe.
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FAQs on How to Withdraw PF
When can I withdraw my PF?
Here’s when you can withdraw the PF:
- Full amount at maturity or retirement
- Partial withdrawals in certain circumstances
How to claim the PF amount?
You can withdraw your PF amount online or offline. To claim the amount online, you can opt for these ways:
- Withdrawal via the Employees’ Provident Fund Organisation (EPFO) Portal
- Withdrawal through the Unified Mobile APP for New Governance (UMANG)
How many days does it take to withdraw PF advance?
The PF withdrawal processing time is 20 working days once your claim is settled.
Sources:
https://www.epfindia.gov.in
