How to Withdraw PF Amount Online?
Updated: Jan 12
The Employees' Provident Fund Organization (EPFO) has amended some of its rules in relation to withdrawal from the Employee Provident Fund (PF) account in 2023. The withdrawal process of the accumulated funds in an employee’s PF account has become much simpler, thanks to the introduction of the EPFO online portal and the UMANG mobile app.
If you have your KYC details linked to the EPFO database, the entire process of How to withdraw PF amount online will be speedy and seamless. However, employees can only withdraw their PF amount in case of certain situations, i.e., the reason for withdrawal must be one of the reasons that the EPFO has specified under their withdrawal eligibility criteria.
Read on to understand when you can withdraw from your EPF account, withdrawal limits, eligibility criteria, steps for filing a claim application, and more.
Table of Content
What is Employees’ Provident Fund?
The Employees’ Provident Fund (EPF) is a popular savings scheme in India that is available to all salaried employees. Both employers and employees are required to contribute to the EPF account - employees are required to contribute 12% of their basic salary to this account each month, and employers must contribute the same.
It is a long-term savings plan that ensures financial security for employees after their retirement and during financial emergencies.
The funds contributed to the EPF accounts earn interest on a yearly basis. The current rate of interest for EPF accounts for FY 2023 is 8.15%.
Since it is a retirement scheme, employees are allowed to withdraw the total amount of accumulated corpus (principal plus interest) after withdrawal. However, employees can also avail of partial withdrawals during urgent situations. Let’s discuss them in detail.
When can you withdraw EPF?
Partial and complete PF withdrawal is allowed under specific circumstances. Employees need to fulfill the eligibility criteria if they wish to withdraw from their PF account.
Partial withdrawal of EPF is allowed in the following situations:
Medical emergencies
The employee, his/her parents, spouse or children can apply for the withdrawal in case of any medical emergencies. There is no condition on the employment duration in this case.
Wedding
The employee, his/her siblings, and his/her children can apply for the withdrawal. To avail withdrawal under this condition, the employee must have completed at least 7 years of uninterrupted employment.
Purchase of property
Only the account holder and his/her spouse can apply for this type of withdrawal. To avail withdrawal under this scenario, the employee must have completed at least 5 years of uninterrupted employment.
Home renovation
Only the employee and his/her spouse is liable to apply for this type of withdrawal. The employee must have completed at least 5 years of uninterrupted employment from the date of completion of construction of the house to avail this benefit.
Repayment of home loan
In this case, only the employee and his/her spouse is liable to apply for this type of withdrawal. The employee should have been employed continuously for 3 years.
The PF withdrawal limit in each case has been mentioned below:
Purpose of withdrawal | Withdrawal limit |
Medical treatment | An amount equal to the employee contribution along with interest or 6 times the employee’s salary, whichever is lower |
Wedding | 50% of the employee’s contribution along with interest |
Purchase of property | An amount equal to 24 times the employee’s salary for new property purchase or 36 times the monthly salary for the construction of new property |
Home Renovation | An amount equal to 12 times the employee’s salary |
Repayment of home loan | 90% of the total accumulated corpus |
Unemployment | 75% of the total EPF amount after 1 month of unemployment, the rest after second month of unemployment |
Retirement | Entire corpus |
PF Withdrawal Eligibility Criteria
Listed below are the eligibility criteria that an employee must meet in order to withdraw funds from his/her EPF account, either partially or completely:
The total amount accumulated in the EPF account can be withdrawn only upon retirement. EPFO allows early and voluntary retirement only after the employee attains 55 years of age.
EPFO allows premature withdrawal of EPF if an employee faces unemployment before retirement due to pandemic-induced lockdown or retrenchment.
For partial withdrawals, employees now need to submit the EPF Composite Claim Form, which has now replaced PF withdrawal Form 31.
Employees can withdraw 90% of their EPF fund one year before their retirement.
75% of the total EPF corpus can be withdrawn after 1 month of unemployment. The rest (25%) will be transferred to the new EPF after gaining employment.
Employees must have an active UAN, PAN, Aadhaar, and bank account details linked with their EPF account.
Employees do not need approval from their employer for EPF withdrawal. If you have linked your UAN and Aadhaar details, the application will get approved by the EPFO.
Partial withdrawal of EPF is allowed only in case of medical emergencies, house purchases or construction, or higher education.
PF Withdrawal Claim Forms
Here are the different forms for PF withdrawal and their purposes:
Form Number | Purpose |
Form 10C | For EPS (Employee Pension Scheme) withdrawal from the pension fund. |
Form 11 | For automatic transfer of EPF. |
Form 19 | Final settlement of EPF |
Form 31 | Partial withdrawal of EPF for specific conditions. |
Applicants are required to submit the relevant form as per their reason for withdrawal. For example, if you, as an employee, wish to opt for partial withdrawal of EPF for home renovation, you need to submit Form 31 with all the relevant details. Upon approval, 12 times your monthly salary will be disbursed from your PF account.
It should also be noted that the submission of incorrect forms may lead to penalties and delays in the claim process.
It should be noted that the Composite Claim Form (Aadhaar and non-Aadhaar) has replaced withdrawal forms 19, 10C, and 31. As the name suggests, the composite form is a consolidated version of the different withdrawal forms that can be submitted either online or offline.
Documents Required for PF Withdrawal
The documents that must be provided during the PF withdrawal application are:
Composite Claim Form
Two revenue stamps
One blank and canceled cheque with the IFSC and account number clearly visible
Valid bank account statement
Aadhaar, PAN and Voter ID card
ITR Form only if the employee wishes to withdraw his/her EPF corpus before 5 years of continuous employment.
Checklist to submit PF Withdrawal Online Application
Make sure to keep the following points in mind before submitting the withdrawal application:
UAN must be active and working
Aadhaar and PAN details must be linked to the Universal Account Number (UAN)
Details of the bank account should be linked with UAN
Mobile numbers linked with Aadhaar and the EPFO database should be active
In case of retirement, the correct date of birth and exit date should be updated in the EPFO records.
How to Enter Exit Date during PF Withdrawal?
It is compulsory to enter your exit date correctly on the claim application form to ensure a seamless PF withdrawal process. The exit date is the last date of your employment.
Follow these steps to update or enter your exit date.
Visit the UAN member portal.
Login to the portal by using your UAN number and password.
Navigate to the “Manage” option, and click on it.
Select the “Mark Exit” option.
Under ‘Select Employment’, select the company’s name from where you are exiting.
Once redirected, you can update your exit date and select the reason for exit from the given options.
Once you accept the terms of the declaration, click on the “Request OTP” option.
Enter the OTP received on your linked mobile number to verify the process.
Online and Offline PF Withdrawal Process
Thanks to digitization, the entire process of PF withdrawal has become entirely hassle-free. You can either submit the application on the EPFO portal or you can also avail the services of the Unified Mobile Application for New-age Governance (UMANG) app. There’s also an offline alternative. All of these options have been discussed below in detail:
Online
Before you decide to withdraw from your EPF account, you must make sure that your UAN is activated and it is linked with your Aadhaar, PAN and bank account.
If you wish to apply on the EPFO e-Sewa portal, follow the steps below:
Visit the official website of EPFO and log in by entering your UAN and password.
Navigate to the “Online Services” tab and click on “Claim (Form 31, 19 & 10C)” option.
A new webpage will open where you will need to verify the details displayed. These would include KYC details. Enter the last four digits of the registered bank account and click on ‘Verify’ to verify the details.
After verifying your details, you need to confirm the terms and conditions of the EPFO. After doing that, select “Proceed for online claim.”
Once redirected, navigate to the “I Want to Apply For” option. After you click on it, you can select between Full EPF Settlement, EPF Part Withdrawal, or Pension Withdrawal.
Choose your withdrawal type and select the reason for withdrawal. You will only be shown the withdrawal options you are eligible for.
Once prompted, enter your complete address. If you have opted for an advance, you must enter the amount and upload your bank passbook details.
After you accept the Terms and Conditions, an OTP will be sent to the registered mobile number.
Enter the OTP in the relevant box to submit the application successfully.
Employees also have the option to use the UMANG app to submit an EPF withdrawal application. The steps to do so are discussed below:
Download the UMANG app on your phone and open it.
Navigate to the ‘EPFO Services’ section.
Click on the “Raise Claim” option from the list of services provided.
Enter your UAN. An OTP will be sent to the registered mobile number.
Enter the OTP for verification. After this, select the type of withdrawal and the reason behind it.
Submit your request to complete the application process.
Offline
Here’s how you can file the EPF claim application offline:
Download the Composite Claim Form as applicable (Aadhaar or non-Aadhaar). If you plan to apply through the Aadhaar Composite Claim Form, make sure your Aadhaar number is linked with your primary bank account number.
Fill out the form with all the relevant data.
Submit the form to your respective jurisdictional EPFO office. For non-Aadhaar claim form, attestation of your employer or a gazetted officer might be required.
How to withdraw PF without UAN?
If you don’t have your Universal Account Number (UAN), you can follow these steps to withdraw your EPF:
Download either the Aadhaar-based Composite form or the Non-Aadhaar-based Composite form from the official portal of EPFO.
Fill out the form with all the required details.
Submit the filled out form to the regional EPFO office. After the submission, it may take a few days for the authorities to approve and process the PF amount to your account.
PF Withdrawal Process for Nominees
In case an employee dies during service, his/her nominee can claim the deceased employee’s EPF. Here are the steps to do so:
Visit the official portal of EPFO.
Navigate to the option 'Death Claim Filing by Beneficiary' and click on it.
Enter details such as the Universal Account Number (UAN) of the account holder, details of the beneficiary and Captcha code.
Once redirected, select ‘Authorized Pin.’
An OTP will be sent to the registered mobile number (linked with the Aadhaar) of the beneficiary. Enter it to file the death benefit claim.
PF Withdrawal Rules 2023
Here are the latest rules and regulations regarding PF withdrawal:
The EPF account is a long-term retirement plan which facilitates life-time savings for an employee. Hence, withdrawal is only allowed upon retirement or in case of certain specific situations.
Employees do not need to wait for the approval of their employer for PF withdrawal. They can apply for the withdrawal online or offline and the corpus amount will be credited to the bank account if all the documents are in place.
As per EPFO rules, early retirement is not recognized until an employee attains the age of 55 years. However, an individual can withdraw 90% of the corpus amount once he/she turns 54 years of age.
In case an employee changes jobs and shifts the PF account to the new employer, it will still be considered a continuous service as long as there are no gaps in contributions.
Taxation Rules on PF Withdrawal
The portion of an employee’s salary that gets contributed to the EPF is tax-free; however, the amount withdrawn from an EPF account is liable for a certain percentage of taxation. The tax rate depends on the tenure of service with an employer during the time of withdrawal.
Here are the tax rules applicable:
EPF Withdrawal Conditions | Taxation Rules |
Entire corpus is withdrawn after five years of continuous service with an employer | No TDS applicable |
In case of premature withdrawal when the employee does not have 5 years of continuous service | Entire PF amount will be taxable as per the applicable tax slab rate |
Withdrawal and transfer of funds from EPF account to NPS | No TDS applicable |
More than Rs. 50,000 is withdrawn prematurely | TDS rate of 10% is applicable; if PAN is not provided, this will increase to 30% If the total income is not taxable, you need to submit Form 15G/H |
Here are additional taxability rules that one should keep in mind:
If an employee decides to contribute more to his/her PF account and if the excess contribution goes over Rs. 2.5 lakhs in a particular fiscal year, then the interest earned on this extra amount would be taxable.
If there is no contribution from the employer’s side, interest earned of up to Rs. 5 lakhs will be tax-exempt for a particular financial year.
Interest amount earned on inactive EPF accounts is taxable in the hands of the employee. To gain clarity about taxation of provident funds, click here.
Advantages and Disadvantages of PF Withdrawal
Here are the primary advantages and disadvantages of PF withdrawal:
Benefits of PF withdrawal
PF withdrawal can act as a financial savior during times of need.
Employees can opt for premature withdrawal or withdraw 100% of the PF amount upon retirement to fund major life events or to meet certain financial obligations.
Along with a high interest rate and guaranteed returns, this savings scheme offers flexibility when it comes to claiming the amount during emergencies.
It acts as a great tax-saving option. Once you opt for final settlement of your PF fund after your retirement, the entire PF amount that you withdraw will be tax-free.
PF withdrawal after retirement helps to fund your post-retirement lifestyle.
EPF members also get the option to avail a loan against their PF account. So, instead of opting for partial withdrawal of EPF, employees can also opt for a loan against the accumulated corpus, that too, at a minimal interest rate of 1%.
Disadvantages of PF withdrawal
PF withdrawal has some drawbacks.
Premature withdrawals can reduce your accumulated corpus drastically and affect your financial security.
Also, withdrawing before maturity of the fund can lead to high taxation and loss of earned interest amount.
Thus, instead of claiming your PF amount prematurely, consider exploring other options, like taking a loan against your PF balance or availing partial withdrawals in case of emergencies. This way, you won’t have to let go of the long-term benefits of your EPF account.
Tips for Effective PF Management
To reap the maximum benefits of your PF account, here are some tips that you can use:
Contribute consistently
Make sure to contribute to your PF account on a consistent basis to leverage the power of compounding. Maintaining an active PF account helps to grow your retirement corpus in a steady manner.
Maximize PF contributions
Increasing your PF contribution can help you earn higher returns upon retirement. You can take advantage of the Voluntary Provident Fund (VPF) to make additional contributions beyond what is permissible.
Transfer PF account when changing jobs
If you decide to change jobs, make sure to transfer your PF account to the new employer. This will help you retain the interest earned on your PF account even if you change your employer.
Things to keep in mind while Withdrawing PF Amount
Here are some points that you should keep in mind during PF withdrawal:
Submit proper documents
Submission of incomplete or incorrect documents can result in delays in the withdrawal process. Make sure to have all the documents in correct order while submitting your PF withdrawal request. Some of the documents that you should keep in handy are bank details, PAN and Aadhaar details, PF account information, etc.
Compliance with PF regulations
Before submitting your PF withdrawal request, make sure to check whether you are eligible to file for the claim. Being aware of the details of the eligibility criteria and tax implications is important for a seamless withdrawal process and avoiding any type of rejection.
Impact of premature withdrawal
Premature withdrawal of EPF amount can drastically reduce the accumulated corpus after retirement. It is better only to withdraw prematurely if it’s absolutely required; this will allow your PF amount to grow over time and will result in a substantial retirement fund.
How to Track EPF Withdrawal Status?
After submitting your PF withdrawal application, you can check and track the withdrawal status via multiple online and offline channels.
Here’s how you can check your PF claim status online:
Via EPFO Portal
Visit the official website of EPFO.
Navigate to the “Services” option and click on it. Select “For Employees” in the drop-down menu.
On the next page, click on the “Know Your Claim Status” option under “Services”.
Once redirected, enter the UAN, password, and captcha details.
Click on the “View Claim Status” option, and you will be able to see the claim status on the screen.
Through UAN Member Portal
Log in to the UAN member portal by using valid credentials.
Under the “Online Services” tab, click on the “Track Claim Status” option.
You will be able to view the status of the withdrawal claims on the next screen.
Through the UMANG app
Download and install the UMANG app.
Log in by using the mobile number that has been registered on the EPFO portal.
Select the “Employee Centric Services” option on the app.
Select the “Track Claim” option to view the status of your claim application.
You can also check the status of your claim offline. To check your EPF claim status through SMS, simply type “EPFOHO<UAN>LAN” and send it to 7738299899. Here, ‘LAN’ is your preferred language in which you want to receive the SMS.
Additionally, you can give a missed call to 011-22901406.
However, for both options, your mobile number must be registered on the EPFO database.
Takeaway
The EPF interest rate for the current financial year is 8.15%. The Employees’ Provident Fund is a powerful saving tool for employees - it offers guaranteed and tax-free returns after retirement along with an excellent interest rate.
However, premature withdrawal of EPF amount will attract taxation. If you want expert assistance when it comes to understanding the tax implications during PF withdrawal, get in touch with the tax experts at TaxBuddy today. Experience the convenience of simplified tax-filing with India’s most trusted tax-filing platform.
Frequently Asked Questions
Q1 Do I need employer’s permission to withdraw the amount from my PF account?
No, as per the latest EPF rules, you do not require your employer’s permission or approval to withdraw the amount from EPF.
Q2 Will the employer contribute a higher amount to the EPF if I do?
No, there is no provision regarding this in the EPF rules. The employer’s contribution will remain the same even if the employee wishes to increase his/her EPF contributions.
Q3 Will EPFO continue to pay interest on my EPF account even if I resign?
If you decide to resign from your job before you attain the age of 58 years, your EPF account will become inactive, and you won’t be able to earn any interest on it. However, you can opt for EPF withdrawal once you become eligible to make the withdrawal application.
Q4 Is it possible to withdraw EPF funds if I don’t have a PAN?
Yes, it is possible to withdraw from your PF account even if you don’t furnish your PAN details. However, a TDS rate of 30% would be applicable on the amount withdrawn.
Q5 What is the retirement age to withdraw the entire EPF amount?
As per the rules laid out by the EPFO, employees can withdraw their EPF amount upon retirement at the age of 55 years. However, one can also withdraw 90% of the EPF amount at 54 years of age, which is one year before retirement.
Q6 I have completed two years in my current organization. Can I withdraw my EPF?
No, EPF rules don’t authorize an employee to withdraw funds from his/her EPF account after just 2 years of employment with an organization. As per the rules, EPF withdrawals are allowed after at least five years of continuous service.
Q7 How many times can I withdraw from my EPF account?
Employees can withdraw their EPF amount as many times as they want. However, there is a limit set to the maximum amount that can be withdrawn. It can either be the total contribution share of the employee or six times the employee’s salary, whichever is lower.
Q8 How much does it take for the PF claim amount to get processed?
After submission of the withdrawal request either online or offline, it takes around 15 to 20 days for the withdrawn amount to get credited to the linked bank account.
Q9 Do I need to submit Form 15G/H while submitting their EPF withdrawal form?
If you withdraw your EPF amount after employment of 5 years, the claim amount would be exempt from taxation. In this scenario, you will have to submit Form 15G/H to inform the authorities not to deduct TDS from the EPF withdrawal amount.
Q10 Where can I check my EPF balance?
You can check your PF balance either online or offline. Online modes include checking the balance on the EPFO member portal or UMANG app. Offline modes include giving a missed call to 9966044425 or sending an SMS to 7738299899.
Q11 What is UAN?
Universal Account Number (UAN) is a unique identification member that is allotted to each member of the EPFO. This 12-digit number acts as an identifier for each salaried employee that is subscribed to the EPF scheme.
Q12 What is UMANG?
Unified Mobile Application for New-age Governance (UMANG) is a mobile app that has been specially designed under the Digital India initiative. It is a single platform where all Indian citizens can get access to various e-Gov services like filing income tax returns, submitting EPF claims, tracking claim status, etc.
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