How To Close Your PF Account Permanently? Know the Process
A sort of fund known as an Employee Provident Fund (EPF) is one in which an employee pays a specific percentage of their pay, and the employer matches that contribution and puts the money into the fund. Every year, interest is earned on the entire amount put in this account.
According to the Employee Provident Fund Act of 1952, salaried employees are only permitted to withdraw their full balance and close their EPF account upon retirement. However, you can only collect the Employee Pension Scheme (EPS) amount if you meet specific requirements. Continue reading for additional details on how to close a PF account.
Table of Contents:
Can You Permanently Close Your PF Account?
It is not a simple task to close an EPF account. However, it is still possible to do it, though there are just two ways to close an EPF account. This comprises:
If an employee passes away, the nominee designated at the account opening will get the full amount.
When an employee withdraws the entire amount after retiring or leaving the company.
However, there are specific requirements for your PF withdrawal process that you need to be aware of after quitting your work. This comprises:
Even if you haven't reached your ten-year service requirement, you are still eligible to receive both EPS and PF amounts. All you must do is choose "pension withdrawal" and "final PF balance" on the Composite Claim form. You can submit Form 10C if you choose to return to work.
You can simply apply for an early pension if you are between the ages of 50 and 58 and have completed your ten-year service tenure. All you must do is complete Form 10D for the scheme certificate and the Composite Claim form.
However, you are unable to withdraw your EPS amount if you have been employed for more than ten years but are younger than fifty-eight. You can complete Form 10C and the Composite Claim form, but you won't get your pension until you are 58.
Lastly, you can claim your pension if you are 58 years of age or older since you are qualified to receive the whole sum. All you must do is turn in Form 10D.
To take advantage of all the benefits of EPF and PF schemes after retirement, you can select and submit the required paperwork based on your circumstances. Closing an EPF account before retirement is not a practical option, either, as all employees are now compelled to give their UAN to their new employer when they change jobs.
Terms and Conditions for EPF Account Closure
You must adhere to specific terms and conditions if you are taking your PF money out because of a change in employment. They are as follows:
Ten Years of Service: You may request an early withdrawal if you are between the ages of fifty and fifty-eight and have worked continuously for your employer for ten years. You must complete the Composite Claim Form and Form 10D in this case.
Service Period Over 10 Years: You are not eligible to take your EPS (Employee Pension Scheme) funds if you have served for more than 10 years but are under 58 years old. The pension will only be paid to you after you retire.
Service Period Less than 10 Years: You are eligible to collect both the PF and EPS sum if you have not worked for a company for ten years. In this instance, you must choose "Final PF Balance" and complete the "Composite Claim Form."
Age 58 and Over: You can withdraw your whole EPF balance and claim EPS by submitting Form 10D if you are 58 years of age or older.
Steps to Withdraw Your PF Amount from the EPF Account
Online Process
It is very easy to withdraw the whole amount of PF on the final settlement after retirement. All you need to do is take these actions online:
Step 1: Go to EPFO's official webpage.
Step 2: Input your captcha code, password, and UAN. Select "Sign in."
Step 3: Select 'Claim (Form-31, 19, 10D & 10C)' from the 'Online services' menu.
Step 4: Click the 'Verify' option once all the necessary information has been entered.
Step 5: In order to sign the "Certificate of Undertaking," click on the “yes” button.
Step 6: Select 'only PF withdrawal (Form 19)' from the drop-down menu.
Step 7: Click "get Aadhaar OTP" after entering your full address and checking the disclaimer.
Step 8: The registered mobile number you provided will receive an OTP.
Step 9: Complete the application by entering the OTP in the designated field.
Step 10: A reference number will be generated once your registration has been successfully submitted.
Step 11: The entire sum will be deposited into the bank account associated with your UAN within 15 to 20 days.
Offline Process
Alternatively, you can also withdraw the EPF payment offline if you are uncomfortable using internet portals. To accomplish this, take these actions:
Step 1: Get the Aadhaar and non-Aadhaar Composite Claim forms from EPFO's official website.
Step 2: The Composite Claim form (Aadhaar) must be filled out and given to the appropriate jurisdictional EPFO office. This document does not require your employer's attestation.
Step 3: Your employer's attestation and the completed Composite Claim form (non-Aadhaar) must be delivered to the jurisdictional EPFO office.
Documents for PF Withdrawal
You don't need to submit any paperwork to register an EPF claim online. On the EPFO portal, you must, however, upload a scanned copy of your passbook or cheque book. It is crucial to remember that all information, including the name, IFSC code, and bank account number, should be easily readable by the authorities in the passbook or cheque book.
Conclusion
EPF is a very popular savings plan since it gives salaried workers financial stability after they retire. It gives them a compounded amount of money that they can use to live well in retirement. It is now required to provide all employees with a UAN, which facilitates the simple transfer and withdrawal of PF funds from the EPF. To close your PF account, nevertheless, you must be aware of the many circumstances and restrictions that apply to full withdrawal. Alternatively, you can seek expert advice to close your account and withdraw your funds.
FAQ
Q1. Can I withdraw my EPF balance from my PF account?
You can take out all or a portion of your EPF balance. The full sum can be taken out after retirement, or earlier if you haven't had a job for more than two months. However, a gazetted officer's attestation would be needed for the withdrawal.
Q2. How can I close my PF account completely?
You must take out your PF balance. Download the Composite Claim form from the official website, then fill it out according to the guidelines to submit your request. For this procedure, you can also go to the EPFO office and turn in a properly completed Composite Claim form.
Q3. Is it mandatory to provide a PAN card for EPF withdrawal?
No, it's not required. However, it is best to give it when withdrawing money from your EPF because failing to do so would result in a 30% TDS.
Q4. What are the terms and conditions for withdrawal of PF?
A person is not allowed to take out all or a portion of their PF funds until they are employed. If a person has been unemployed for at least one month, they can withdraw up to 75% of the funds; if they have been unemployed for two months or more, they can withdraw the remaining amount.
Q5. How much time does it take for the processing of EPF withdrawal?
Your EPF withdrawal may take 15 to 20 days to process, depending on how long it takes to submit the withdrawal request and gain employer clearance.
Q6. What are the different types of PF withdrawal claim forms?
The various PF withdrawal forms are as follows:
Form 19 for final PF settlement claims
For partial EPF withdrawals, use Form 31
Form 10D for monthly pension withdrawals
Form 10C for withdrawal of pensions
Forms 19, 10C and 31 have been superseded by the new EPF Composite Claim form, nonetheless
Q7. Can I close my PF Account without involving my employer?
Yes, you can request the EPFO directly if you want to close your PF account without consulting your employer.
Q8. What is the process for closing a PF Account without employer involvement?
Closing a PF account and taking all the money out is a comparable procedure to closing a PF account without the employer's help. In addition to completing Forms 19 and 10C, you must submit a cancelled cheque or a copy of your bank passbook along with your name and account number.
Q9. Can I withdraw my PF balance before retirement?
If you fulfil specific requirements, you can take your PF balance out before you retire. You can take out the full amount in your PF account if you have been unemployed for two months or more. You need to complete Form 19 and submit it to the EPFO so that your PF balance can be withdrawn.
Q10. Can I close my PF account online permanently?
Yes, the EPFO portal allows online applications for closing a PF account under specific circumstances, like retirement or unemployment.
Q11. What are the eligibility criteria for permanently closing a PF account?
You can close your PF account upon retirement, unemployment exceeding two months, or after relocating abroad permanently.
Q12. How does Budget 2025 impact PF account closures?
Budget 2025 might streamline the online withdrawal process and increase the tax exemption limit on final settlements.
Q13. Are tax deductions applicable to PF withdrawals during account closure?
Withdrawals before five years of continuous service attract TDS under Section 192A unless exempted under specific conditions.
Q14. What happens to inoperative PF accounts during closure?
Interest continues to accrue on inoperative PF accounts for up to three years after retirement; closure ensures settlement of all dues.
Q15. Can an employer object to the closure of my PF account?
Employers cannot deny closure if you meet eligibility criteria, but their approval is required for submission of Form 19.
Q16. Does Section 194C impact PF-related settlements?
No, Section 194C pertains to TDS on contracts, not PF withdrawals; however, understanding TDS rules ensures proper compliance.
Q17. What documents are required to close a PF account?
Aadhaar, PAN, UAN details, Form 19, and bank account proof are essential for initiating closure.
Q18. How long does it take to settle a closed PF account?
Settlement is usually completed within 15-20 working days after submission of the complete application.
Q19. Can I close my PF account if I switch jobs?
No, PF accounts must be transferred to the new employer's EPF account instead of closure.
Q20. What is the process for NRIs to close their PF accounts?
NRIs can apply for account closure after submitting proof of relocation, Form 15CA/CB, and relevant KYC documents.
Q21. Are loans against PF accounts impacted during closure?
Any outstanding PF loan must be repaid or adjusted before initiating the account closure process.
Q22. How does the Employees’ Pension Scheme (EPS) affect PF closures?
While PF can be withdrawn, EPS requires separate settlement based on eligibility and contribution years.
Q23. What are the implications of Budget 2025 for EPF withdrawals?
Budget 2025 may introduce relaxed rules for premature withdrawals and enhanced tax-free withdrawal limits.
Q24. Can digital KYC expedite the PF account closure process?
Yes, completing digital KYC verification ensures faster approval and reduces settlement delays.
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