EPF Withdrawal Rules 2023 : Get your money when you need it the most
EPF Withdrawal Rules 2023 : Employee Provident Fund, commonly known as provident fund, is a mandatory retirement savings initiative that is applicable to all employees within eligible organizations. This program enables employees to depend on the accumulated fund fund after retirement EPF withdrawal rules. Recently, updates have been made to the PF withdrawal rules, which are aimed at giving individuals easy access to their PF fund PF withdrawal limit. Go through the details below for comprehensive information on PF withdrawal rules, including highlights, conditions, limitations, procedures for online PF withdrawal, etc.
PF Withdrawal Rules 2023
Provident fund, commonly known as PF, is a savings program based on contributions from both employer and employee. The purpose of these financial contributions is to create a fund that covers post-retirement expenses. Within the framework of specific withdrawal rules, employees can access withdraw accumulated funds. The Employees’ Provident Fund Organisation , statutory body in India, oversees the management of the Employees’ Provident Fund PF withdrawal limit. The fund serves as an important source of financial security for Indian citizens working in the organized sector.
The primary purpose of EPF contribution is to serve as savings for post-retirement. EPFO ensures continuous enrolment of all employees in the programme and discourages premature withdrawal from its PF corpus EPF withdrawal rules. To implement this, EPFO has established specific rules governing EPF withdrawals. Recently, the Employees’ Provident Fund Organization (EPFO) has updated several rules related to withdrawal from the provident fund (PF) account.
Key Highlights Of PF Withdrawal Rules 2023
| Name | PF Withdrawal Rules |
|---|---|
| Regulated by | Employees’ Provident Fund Organization |
| Beneficiaries | Employees |
| Official Website | epfindia.gov.in |
Checking PF Withdrawal Rules
- Unlike a traditional bank account, an EPF account does not allow withdrawals during active employment, which acts as a dedicated long-term retirement savings plan. Withdrawals from the EPF account are usually allowed only after the retirement PF withdrawal limit.
- However, in specific emergencies such as medical crisis, or construction, or pursuing further education, partial withdrawals from EPF accounts are allowed, subject to certain restrictions depending on the purpose. The account holder request partial withdrawals electronically.
- An employee, at least 54 years of age, can withdraw up to 90% of the EPF corpus up to one year before the retirement PF withdrawal limit. EPF corpus can be accessed only after retirement, though premature retirement is not allowed until the individual turns 55.
- In cases of job loss due to factors like lockdown or layoffs, EPF funds can be withheld. Under the latest regulation, EPFO allows withdrawal of 75% of EPF funds after one month of unemployment. The remaining 25% can be deposited in a new EPF account after securing new employment.
- Members should declare unemployment before taking EPF withdrawal. Earlier, after two months of unemployment, 100% of EPF could be withdrawn. Tax is deducted at source if the EPF fund is withdrawn prematurely. However, TDS is not applicable if the total amount is less than Rs 50,000. 10% TDS rate applicable if an employee provides his/her PAN, and 30% plus VAT is deducted PAN is not provided.
- Form 15H/15G is a declaration form, which allows individuals to avoid TDS if their entire income is not taxable. Employment authorisation is no longer a prerequisite for EPF withdrawal. If UAN and Aadhaar are linked and the employer approves, it can be done immediately through EPFO, PF withdrawal limit and EPF withdrawal status can be checked online.
- Tax exemption for EPF fund withdrawal is available under certain conditions. To be eligible for tax exemption, an employee has to contribute to the EPF account for five consecutive years. If there is a break in contributions for five consecutive years, the EPF amount becomes taxable, making the entire amount as taxable income for that financial year.
Conditions For Withdrawal
The terms of PF withdrawal vary depending on different conditions :
1. Employees continuing under service :
- For advance from PF account, employees will have to submit the overall claim form.
- LIC coverage payment EPF withdrawal rules require Form 14 when using PF account.
- Employees over the age of 58 are required to submit Form 10D to the pension fund and can qualify a monthly pension after ten years of service.
2. Switching Jobs by Employees :
- Form 13 is required for EPF account transfer while changing jobs.
- If a company is left without a transfer, PF and pension claims can be made using the composite claim form.
3. Workers Quitting Companies Due to Physical Disability :
- Form 10D is used for monthly pension claims.
- PF claims are submitted using composite claim form (Aadhaar/Non-Aadhaar).
- Employees above 58 years of age with less than 10 years of qualifying service can claim pension and PF benefits using the composite claim form.
4. Death of employees while serving :
- Form 20 is used for PF settlement by beneficiaries, nominees or heirs.
- Form 10D is required for monthly pension claim.
- Form 5IF is used for EDLI claims.
5. Death of workers after retirement :
- Form 20 is used for PF claims by the heir, nominee or beneficiary of the deceased employee.
- Form 10D is required to claim monthly pension.
- The beneficiaries are entitled to the pension fund even if the employee has provided Aadhaar/Aadhaar card. Have not earned ten years of qualifying service after the age of 58 years using the non-Aadhaar composite claim form.
PF Withdrawal Limits
| Reasons | Eligibility | Withdrawal Limit |
|---|---|---|
| Marriage of self/daughter/son/sister/brother or for children’s post-matriculation education | Minimum 84 months of service | Up to 50% of the EPF account |
| Housing loan for building a house or adding on, buying a lot, or renting a flat | Minimum 60 months of service | Up to 36 months of his basic salary and DA, the amount and interest of the employee and employer’s share, or the entire cost of the house. |
| Medical expenses/purchase of equipment by physically handicapped/Natural Calamity/closure of factory/cut in electricity in the establishment | No minimum service tenure | His/her basic and DA pay for up to six months, or the full contribution |
| One year before retirement | Should be older than 54 years old | Up to 90% of his/her EPF amount |
Procedure For Online PF Withdrawal
To start online PF withdrawal, users can follow the steps given below:
- Start by visiting the official website of the Employees Provident Fund Organization (EPFO) portal.
- The homepage of the website will be displayed on the screen.
- To start online PF withdrawal, follow these steps:
- Visit the official website of the Employees’ Provident Fund Organization (EPFO) portal.
- Click on the ‘Service’ option, followed by ‘For Employees’. Now a new page will open on your screen.
- Now, under the ‘Services tab’, the member will be able to use the UAN/UAN button. Online Service (OCS/OCS) Select the ‘OTCP)’ option. Another page will appear on your screen.
- Enter your UAN, password and captcha code. Click on the login button to access your registered account.
- Your account dashboard will open on the screen. Under the ‘Management’ tab, click on the ‘KYC’ option. A new page will be displayed.
- Check all your KYC details under the digitally approved KYC section to ensure accuracy.
- If all the KYC information is correct, select the ‘Online Service’ link from the top menu to proceed with the withdrawal.
- Click on the ‘Claim Form-31, 19 and 10C’ option. The online claim (Form 31, 19 and 10C) form will be displayed on the screen PF withdrawal limit.
- Enter the last four digits of your registered bank account number and check it again. A guarantee letter will be prepared after successful bank account verification.
- Finally, select the option of ‘Proceed for online claim’.
- To withdraw money online, select the ‘PF Advance (Form-31)’ option.
- Select the reason for the claim from the drop-down menu next to ‘Reason that requires advance’. Complete the fields for the employee’s address and advance amount. Click on the checkbox and submit your withdrawal application.
- Upload the required documents depending on the type of withdrawal.
- Once the employer approves the withdrawal request, the withdrawn amount will be deducted from the EPF account and transferred to the specified bank account.
- At settlement, you will receive an SMS notification on your registered cellphone number.
FAQ Questions Related PF Withdrawal Rules 2023
What are the rules for PF withdrawal in 2023?
According to the new rules, PF account holders can withdraw money equal to their three months’ basic salary and dearness allowance or 75% of the net balance in their PF or EPF account, whichever is lower. EPF withdrawal rules. This will be taken as non-refundable deposit. These withdrawal claims can be raised online.
What are the new rules for PF advance withdrawal?
As per the latest rules, PF account holders are now allowed to withdraw an amount equal to three months of their basic salary and dearness allowance or 75% of the net balance in their EPF account, whichever is lower. It is important to note that as long as you are employed, whether fully or partially, you are not allowed to withdraw any money from your PF account.
Can I withdraw 90% of my PF?
Complete withdrawal of your entire PF corpus is allowed only after you retire, and retirement eligibility starts from the age of 55 years. If you choose to retire before reaching this age, you will not be allowed to receive your entire corpus at once. However, you have the option to withdraw 90% of your EPF corpus one year before your retirement date.
Source:- Internet
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