Employee Provident Fund (EPF) is a scheme for the employees to build the habit of savings and it is also known as a retirement scheme. It is a contribution by both the employer and the employee which is done on a monthly basis. The amount deposited in EPF accounts earns interest on an annual basis. The contribution by the employee and the employer is duly updated in the records of the EPFO department after the validation of the records. With the introduction of online facilities by the EPFO department, the facility of online balance check and download of passbook is available. In this article, we will discuss how to access PF claim form online and withdraw.
PF CLAIM FORM ONLINE WITHDRAWAL RESTRICTIONS
It is important to note that only the amount contributed under the scheme can be withdrawn on retirement. There are certain conditions on whose fulfilment the amount can be withdrawn before retirement and has tax implications. Otherwise, the employees can withdraw the entire sum accumulated in their EPF account once they retire. To withdraw the amount, a PF claim form online has to be submitted with is Form- 19 with the EPFO department. The facility of withdrawal is now online and once can access this facility of claim settlement or withdrawal through the online portal of EFPO and through an app known as “UMANG”.
The claim Form-19 is for the withdrawal of the amount contributed under the scheme. The employees can track or withdraw an amount equivalent to 75% of the EPF balance after one month of unemployment and the remaining 25% can be withdrawn after two months.
PROHIBITION ON WITHDRAWAL OF EPF AMOUNT
There are restrictions or prohibitions on the pre- withdrawal of EPF amount by the employees. Such situations and restrictions are as follows:
- An employee can withdraw the complete amount of its EPF account before retirement at the time of switching employers. It has a condition that they should be unemployed for a period of two months.
- The employees withdrawing the amount without being unemployed for two or more months is not allowed.
CONDITIONS FOR PARTIAL WITHDRAWAL OF EPF AMOUNT
A partial withdrawal of EPF amount can be made by filling PF claim form online under certain conditions, which have been discussed in brief below:
- In case of marriage of employee or his daughter or son or brother or sister, a partial amount can be withdrawn up to 50% of the employee’s contribution under this scheme. The employee has to meet the criteria of 7 years of minimum service.
- If the employee wants to pursue or pursuing higher education, then up to 50% contribution can be withdrawn with the criteria of 7 years of services.
- If the employee wants to close any home loan, then up to 90% contribution by both employer and employee can be withdrawn with a condition of 10 years of service.
- In case of purchase of land, an employee with 5 years of service can withdraw up to 24 times of monthly wages plus dearness allowance for the purchase of land.
- For the purpose of house construction, an amount equivalent to 36 times of monthly wages plus dearness allowance can be withdrawn by the employee with 5 years of service.
- An employee can withdraw an amount of up to 12 times the monthly wages with 5 years of service for the purpose of the renovation of the house.
PROVISIONS & EFFECTS OF PRE- WITHDRAWAL OR PARTIAL WITHDRAWAL OF EPF AMOUNT
It is important to take into consideration that there is an effect in the case of pre-withdrawal of EPF amount and which are detailed as under:
- In case of withdrawal of EPF amount is done before 5 years, it will attract taxes. However, withdrawals made after completion of 5 years of continuous service are tax-free as per the provisions of EPFO Scheme. The withdrawal can be made by filling the PF claim form online.
- There will not be any tax if the withdrawals are made when the employee is unemployed as per the provisions of the EPFO Scheme.
- There will be a tax @ 30% on the principal amount of withdrawal before completion of 5 years of service.
- In case an employee changes a job and has a different EPF account, then as per the provisions of the EPFO Scheme it will be considered as a continuous service subject to provisions of the scheme there is no gap in contributions.
- A combined PF claim for online can be filed by the employees for the settlement of the EPF amount or for withdrawal of the amount. No attestation of the claim form by the employer is required in case of withdrawal or settlement of the EPF amount.
- Attestation of the claim form is required when the employee has not linked their Aadhar Card details with their respective UAN ID.
- In case of transfer of EPF amount from one EPF account towards the National Pension Scheme (NPS) will not attract tax when one makes a withdrawal.
- There will be a TDS (Tax Deduction at Source) @ 10% on the amount withdrawn from the EPF account if the service is below 5 years and if EPF member submits PAN or @ 34.60% if no PAN has been submitted by the employee. If the total balance is less than Rs. 50,000/-, then the TDS deduction will not be applicable.
PROCEDURE FOR WITHDRAWAL OR FILING OF PF CLAIM FORM ONLINE (FORM 19 )
An employee can withdraw EPF amount by filling PF claim form online in Form -19 through the online portal of EPFO Scheme or through an app “UMANG”. For the purpose of filing PF claim form-19, an employee need to have a UAN ID and a password registered on the EPF Portal or the UMANG App.
1. Visit the UAN Portal (unifiedportal-mem.epfindia.gov.in/memberinterface/)
2. Enter the UAN ID and password along with the captcha and then click “Sign In”.
3. Click on the option “Manage” and select KYC to check whether your KYC details such as Aadhaar, PAN and the bank details are correct and verified or not. It will appear as follows:
4. Click on option “Online Services”, choose in the drop down the option of “Claim Form”.
5. Enter the last 4 digits of your respective bank account and click on button “Verify”.
6. Click on “Yes” to agree the terms and conditions and then click on “Proceed for Online Claim” to submit your claim form.
The abovementioned are easy steps through which you can fill PF claim form online using Form 19. The important aspect is to consider the tax implications following EPFO Act.
PROCEDURE FOR OFFLINE WITHDRAWAL OF PF
You may file the claim form offline by visiting the branch of EPFO or the head- office in the respective zone or the area. Here is a sample of PF claim form
Sample of a claim form if filed offline to the respective EPFO Office under which the employee is registered
PF CLAIM FORM ONLINE – (FAQs)
1. Can I file a withdrawal form or claim form offline?
Yes, one can file the claim form offline by visiting the branch of EPFO or the head- office in the respective zone or the area.
2. Is it to file a claim form every time for the withdrawal?
Yes, a claim form is required to be filed for every withdrawal. You can file PF claim form online through the portal of EPFO or through an app known as “UMANG”.
3. What information or documents required for filing of PF claim form online?
It is necessary to have a UAN ID along with a password generated at the time of registration to file a withdrawal form. It is important that the Aadhar details are linked with the UAN ID along with the PAN is registered.
4. Can I increase my contribution amount to the EPF Scheme?
Yes, an employee can increase the contribution amount as when they want to but this will not mean that the increase of contribution by the employee will also increase the contribution by the employer. An employer cannot be forced to increase the contribution amount more than the threshold limit.
5. Do I have to take the employer’s permission or signature for withdrawal or filing of PF Claim Form online?
No, employer permission is not required to file the claim or withdrawal form by the employee as it is one’s decision but it has to be in accordance with the provisions and rules of the EPFO Scheme. Also, in case of a combined form of claim filed by the employees for the settlement of EPF amount or for withdrawal of the amount.
6. If the withdrawal is done as per the provisions of the EPFO Scheme, then will it be eligible for tax deductions?
Yes, it is eligible for the tax deductions under section 80C of the Income Tax Act, 1961.
7. What are the occasions when pre withdrawal can be made by the employees?
The following are the occasions when a pre withdrawal application can be filed but every situation is subject to conditions:
- In the case of marriage of the employee or daughter or son or brother or sister.
- In case of purchase of land or construction of house
- In case of renovation of the housed
- In case an employee wants to pursue further or higher education
- In case of settlement of home loan by the employee
8. When the entire withdrawal of EPF amount is allowed under the scheme?
When the employee is unemployed for a period of more than 2 months and the time of retirement.
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