How To Claim PF Amount

Want to know process of online pf withdrawal? Well you have landed on the right article.

Employees’ Provident Fund (EPF), often known as PF (Provident Fund), is a government-mandated saving and retirement plan for qualifying employees. Employees will be able to draw on the corpus of this fund when they retire.

Employees must contribute 12% of their basic income to this fund each month, according to EPF regulations. The company matches the employee's contribution to the PF account.

Once a year, the money saved in EPF accounts receives interest. When an employee retires, they are entitled to the whole amount saved in their EPF. If certain circumstances are met, an EPF account may be withdrawn early.

In this article, we have covered the best method to how to withdraw pf online.

Online PF withdrawal/PF Withdrawal Online Process

The EPFO has created an online PF withdrawal service, making the entire process easier and less time-consuming. To claim PF online, make sure your UANis linked and activated with KYC (Aadhaar, PAN, and bank details).

If one meets this condition, you may withdraw your PF by following the instructions below.

• Enter your UAN and Password to gain access to the UAN Member Portal.
• After choosing the 'Online Services' link in the top navigation bar, choose 'Claim (Form-31, 19,10C & 10D)' from the drop-down menu.
• The member's information will be displayed on the screen. Enter the last four digits of your bank account and click the 'Verify' button.
• To proceed, click 'Yes' to sign the undertaking certificate.
• Now click the 'Proceed with Online Claim' button.
• To withdraw funds electronically, choose 'PF Advance (Form 31).'
• A new portion of the form will appear, requiring you to choose the 'Purpose for which advance is sought,' the needed amount, and the employee's address.
• Then, click the box for certification and submit your application. (It should be noted that all alternatives for which the employee is ineligible for withdrawal will be shown in red.)
• You may be requested to upload scanned documents depending on the purpose for which you filled out the form.
• Prior to the amount being sent from your PF account to your personal savings account mentioned on the withdrawal form, your employer must accept your withdrawal request.
• SMS notification will be issued to your EPFO-registered cell phone number. The funds will be paid to your bank account after the claim has been processed. Although the EPFO has not set a time restriction, funds are usually credited within 15-20 days.

The labour ministry has announced that EPF members may now withdraw twice from their EPF account to cover emergency expenses incurred as a result of the Coronavirus epidemic.

Members can withdraw up to 75% of their EPF balance, or three months' basic income and dearness allowance,  Whichever is less. Furthermore, EPFO anticipates that these withdrawal claims will be fulfilled within three days 

And has set up an auto-claim settlement process for members whose KYC is complete in all aspects

EPF Withdrawal Offline Procedure

To withdraw your PF, visit your local EPFO office and complete a Composite Claim Form. There are Aadhaar and Non-Aadhaar Composite Claim Forms available.

The Aadhaar Form does not require employer certification, however, the Non-Aadhaar Form must be certified by your employer before it is sent to the jurisdictional EPFO office. Previously, withdrawal of funds required documents such as Form 19, Form 31, and Form 10C.

However, these documents have now been replaced by a single EPF withdrawal form, the Composite Claim Form, which performs the functions of all three forms.

Conditions for Eligibility to Withdraw EPF 

For claiming EPF withdrawal, employees have to fulfil the following criteria:

• The whole amount of the EPF account may be liquidated only after retirement. Once a person reaches the age of 55, EPFO will consider early retirement.
• In the event of an emergency that is medical in nature, the acquisition or building of a home, or the pursuit of higher education is a partial withdrawal of EPF authorized.
• EPFO permits a 90% withdrawal of the whole amount one year ahead of their retirement.
• If an employee is laid off or retrenchment causes them to lose their job before retirement, the EPF corpus may be withdrawn.
• According to the new law, 75% of the full amount may be withdrawn after one is unemployed for a month. Any residual funds will be transferred to a new PF account upon employment.
• Employees are not required to acquire consent before withdrawing their EPF from their employer. They can get clearance by attaching their Aadhar card and UAN to their PF accounts online.
• When submitting your online claim, you must have-
      1. A legitimate UAN number.
      2. The EPF database is seeded with bank information connected to UAN, PAN, and Aadhar.

EPF Withdrawal Rules: When can you withdraw?

Employees can only withdraw their EPF corpus if the following conditions are met:

Documents Required for EPF Withdrawal

If an employee withdraws his PF funds before completing 5 years of continuous service, he must submit ITR Forms 2 and 3 detailing the total amount put into the PF account each year. When seeking PF withdrawal, the following paperwork must be provided:

• Claim Composite Form
• There are two different revenue stamps available.
• Account Statement (It should be the PF holder's bank account while they are alive).
• Proof of Identity
• Confirmation of address
• A single cheque that has been cancelled and is blank with the account number and IFSC code clearly indicated
• Additional info such as the father's name, date of birth, and so on should match the proof of identity exactly.

If the PF is withdrawn by an employee before completing continuous service of 5 years, they must submit ITR Forms 2 and 3 detailing the total amount put into the PF account per annum.

Benefits of EPF Withdrawal Online

Making an online EPF withdrawal claim has several advantages, which are stated below:

• Simple Withdrawal - Using the online procedure for withdrawal claim of EPf saves you the time and effort of going to EPFO and waiting in long lines.
• Shorten Process - When you submit an online claim, the funds are processed and sent to your bank account in fifteen to twenty working days. According to government plans, the process will be cut even more.
• There won’t be a need to return to your prior job for completion- Unlike the offline process, which requires you to have your paperwork
  authorized by your employer, processes that are online are promptly validated. This is especially beneficial to folks who have relocated because it helps in saving the effort of carrying documentation or travelling great distances.
• As a result of the COVID-19 epidemic, the Indian government implemented the Pradhan Mantri Garib Kalyan Yojana (PMGKY), under which employers and workers will receive contributions to employees' EPF accounts for three months beginning in March 2020, April 2020, and May 2020.
• The incentive is available to businesses with up to 100 employees, with 90 per cent of those employees earning less than Rs 15,000 a month. Non-governmental organizations' EPF contributions have been lowered from 12% to 10%. The plan has been extended to June, July, and August 2020.

Taxation on EPF Withdrawal

The totality of a PF withdrawal is tax-free, but only if the following requirements are met:

Other elements to consider when evaluating if EPF withdrawals are taxable:

• If the 5-year term is broken, the EPF amount becomes taxable; in this scenario, the full sum becomes taxable.
• If an employee's whole income is not taxable, they must file Form 15H/15G.
• If an employee previously claimed Section 80C exemption on PF payments, they must pay tax on the employee contribution, the employer contribution, and the interest on all deposits. Employee contribution shares, on the other hand, are tax-free if they were not claimed the previous year.
• The employee's tax burden will be determined by his compensation in the year of withdrawal.
• In a fiscal year, if an individual contributes more than Rs 2.5 lakh to an Employees' Provident Fund (EPF) or Voluntary Provident Fund (VPF), the interest earned on that excess contribution is taxed. Government employees have a salary ceiling of Rs 5 lakh.

How to Check EPF Claim Status?

PF withdrawal is possible via the UAN members’ website. Before continuing to the site to make an online withdrawal, members must activate their UAN. The portal may also be used to transfer funds from his previous PF account to his new one.

Additional online services, such as eKYC and contact data changes, may be performed through this website. The EPF member site allows you to track the progress of your EPF withdrawals online.

To track claim status, go to the website, scroll down to the 'Online Services' area, and then select 'Track Claim Status.' It's worth mentioning that you won't have to enter a reference number to validate the status; it'll appear on the screen right away.

I hope you liked our article on how to online pf withdrawal, if you have any comments or suggestions do share them in the comments below.

Frequently Asked Questions

1. How can I withdraw my PF online using the UAN app?

The Umang app is a single app that gives you access to a wide range of pan-India e-government services, such as income tax filing, Aadhaar, and provident fund queries, gas cylinder booking, and Passport Seva.

Employees' Provident Fund (EPF) members can use the Umang app to withdraw funds from their PF account. To withdraw funds from an EPF account, the Universal Account Number (UAN) must be linked to an Aadhaar number.

The Umang app may be used to withdraw EPF funds in the following ways:

• To use the mobile app's features, open the app on your phone and log in.
  
• From the drop-down option, choose 'All Services,' then search for 'EPFO.'
  
• From the drop-down option, select 'Raise Claim.'
  
• In order to generate an OTP, you must input your EPF UAN number.
  
• Input the one-time password (OTP) that was sent to your registered mobile phone number.
  
• Fill out the form and select the kind of withdrawal.
  
• You will be provided with an acknowledgement slip or a claim reference number after correctly completing the request. Using the reference number, you may track the status of your withdrawal request.

2. How can I withdraw my PF account online?

The EPFO has created an online withdrawal service, making the entire process more easy and time-consuming. To withdraw EPF online, make sure your UAN is activated and linked to your KYC (Aadhaar, PAN, and bank details).

If you meet this condition, you can withdraw your EPF online by following the instructions below.

• Enter your Password and UAN to gain access to the UAN Member Portal.
  
• After choosing the 'Online Services' link in the top navigation bar, choose 'Claim (Form-31, 19,10C & 10D)' from the drop-down menu.
  
• The member's information will be displayed on the screen. Enter the last four digits of your bank account and click the 'Verify' button.
  
• To proceed, click 'Yes' to sign the undertaking certificate.
  
• Now click the 'Proceed with Online Claim' button.
  
• To withdraw funds electronically, choose 'PF Advance (Form 31).'
  
• A new portion of the form will appear, requiring you to choose the 'Purpose for which advance is sought,' the needed amount, and the employee's address.
  
• Then, click the box for certification and submit your application. (It should be noted that all alternatives for which the employee is ineligible for withdrawal will be shown in red.)
  
• You may be requested to upload scanned documents depending on the purpose for which you filled out the form.
  
• Before the amount is sent from your PF account to the bank account mentioned on the withdrawal form, your employer must accept your withdrawal request.
  
• SMS notification will be issued to your EPFO-registered cell phone number. The funds will be paid to your bank account after the claim has been processed. Although the EPFO has not set a time restriction, funds are usually credited within 15-20 days.