EPF can be completely or partially withdrawn. The facility of the complete withdrawal is accessible to those individuals who either retire or remains jobless for more than 2 months. Meanwhile, partial withdrawal can be availed by those who need to cater to certain obligations such as home loan repayment, medical bill payment, marriage, etc. One can go for a withdrawal claim by making an online application on a concerned portal. But, EPF withdrawal online facility is only accessible if the applicant’s Addhaar is linked with their UAN. This write-up is all about EPF withdrawal online procedure.
Before we briefed out EPF withdrawal online procedure, please do have a look at the latest notification released on 1st June 2021, in wake of the COVID-19 emergency.
The labor ministry has now allowed EPF register members to avail dual withdrawal from their respective EPF account to cater to emergency expenses triggered by the Covid-19 outbreak. The maximum threshold of withdrawal allowed is capped at 75% of the total amount that exists in the EPF account or 3 months of the dearness allowance and basic wages, whichever is lower. Moreover, EPFO has also ensured the prompt settlement of such claims, which precisely maxed out at 3 days. The members with complete KYC verification can have access to the auto-claim settlement process.
A Step by Step EPF Withdrawal Online Procedure
To proceed with EPF withdrawal online procedure, make sure you have an active UAN in place linked with credentials such as Aadhaar, PAN, and bank details. Those who have already fulfilled this condition can proceed with EPF withdrawal online procedure as shown below.
Step 1- Login to the UAN member website via your UAN & password.
Step 2- From the menu bar, select ‘Online Services’ followed by Claim (Form-31, 19 & 10C)’ from the drop-down menu.
Step 3- Member details shall prompt on your display. Fill the vacant field with the last 4 digits of your bank account and then tap on the Verify option.
Step 4- Tap on the ‘Yes’ to agree on the certificate of the undertaking.
Step 5- Next, tap on the option, viz ‘Proceed for Online Claim’.
Step 6- Opt for the ‘PF Advance (Form 31)’ to initiate the withdrawal processing.
Step 7 – A new page will prompt on your screen, wherein you have to opt for “Purpose for which advance is required” followed by the amount required and the employee’s address
Please note that all options that are non-accessible to the employee will be cited in red color.
Step 8 – Place a tick mark on the certification & submit the application.
Step 9 – Based on the purpose of withdrawal, you are required to upload the apt documents as requested by the portal.
Step 10 – Your employer’s consent is important to initiate the withdrawal request. As soon as the said condition is met, the fund will be transferred to your registered bank account.
SMS notification will be forwarded to your registered contact number. After processing the claim, the requested amount will be routed to your respective bank account. The requested amount will be credited in 15-20 days.
Documents to be uploaded for EPF withdrawal online procedure
Following are the documents to be uploaded by the applicant for EPF withdrawal online procedure.
- Composite Claim Form
- Bank account statement (The bank account should belong to the PF holder)
- Two revenue stamps
- Address proof as well as Identity proof
- One blank & canceled cheque reflecting IFSC code and account number
- Personal information like father’s name, DOB, etc. as cited on the identity proof.
- ITR Forms 2 and 3 in case the employee has availed withdrawal before 5 years of continuous service. Such forms usually entail a complete briefing of the entire amount deposited in the PF account since its inception.
EPF Withdrawal Rules: When can you withdraw?
The table below manifests the conditions under which EPF withdrawal can be made:
|Condition||Service Tenure||Withdrawal Amount||Other Limitations|
|Construction/Purchase of house||The employee must have a seamless track record of serving the firm for continuous 5 years.||The maximum threshold of amount that is allowed for withdrawal is maxed out at 24 times of monthly salary for purchasing or 36 times of monthly salary in case purchase & construction (both)||Withdrawal facility is only accessible to PF account holder and his/her spouse|
|Medical treatment||No cap||The withdrawal is permissible for the amount equivalent to the employee’s share along with interest or six times the monthly salary, whichever is lower.||Withdrawal facility is only accessible to PF account holder, guardian and his/her spouse|
|Repayment of home loan||The employee must have a seamless track record of serving the firm for continuous 3 years.||Withdrawal threshold is capped at 90% of the amount present in PF account.||Withdrawal facility is only accessible to PF account holder and his/her spouse|
|Renovation of house||The employee must have a seamless track record of serving the firm for continuous 5 years completion’s date of construction of the house.||The withdrawal amount is capped at 12 times of monthly salary.||Withdrawal facility is only accessible to PF account holder and his/her spouse|
|Wedding||The employee must have a seamless track record of serving the firm for continuous 7 years.||Withdrawal amount is equivalent to 50% of the employee’s contribution along with interest.||Withdrawal facility is only accessible to PF account holder and his/her children.|
EPF Withdrawal Limit
EPF withdrawal limit is largely depends on the objective for which the withdrawal is claimed.
|Purpose of EPF Withdrawal||EPF Withdrawal Threshold|
|Medical Purpose||Lower of the overall PF amount or 6 times of monthly salary|
|Wedding||50% of PF contribution|
|Home Loan Repayment||Up to 90% of the EPF corpus|
|Home Renovation||12 times of the monthly salary|
|Retirement||Entire EPF Balance|
|Unemployment||75% after 1st month & 25% after 2nd month of unemployment|
Taxation levied on EPF Withdrawal
Though the amount of EPF withdrawal largely remains non-taxable; there are certain exceptions to it, as shown in the table below:
|Scenarios for EPF Withdrawal||Taxation norms|
|Employee withdraws PF amount of more than INR 50,000 before serving 5 continuous years of service||TDS is applicable @ 10% if the employee submits his/her PAN. In case non-availability of PAN card, TDS @ 30% shall be imposed. Submission of Form 15G/H would not attract TDS|
|Employee withdraws PF amount post-completion of 5 years of continual service||No TDS levied. Such withdrawals are non-taxable.|
|Employee intends to transfer PF amount to the National Pension Scheme (NPS)||No TDS applicable|
Hopefully, you would not require any further clarification after going through this write-up. The EPF withdrawal online procedure is not a complicated process as you can see from the above. However, if you encounter a technical issue in the process then let our experts help you out.
Read our article:Know the Checklist for the Documents Required for EPF Registration