PF Withdrawal Online: Provident Fund rules to know before fishing out money from PF account

PF Withdrawal Online: Provident Fund (PF) is also called the Employees' Provident Fund (EPF) Scheme. This is one of the most popular retirement-oriented investment schemes.

EPF Withdrawal Online: Provident Fund (PF) fetches 8.50 per cent interest rate. This PF interest rate is highest among all debt investments as it attracts zero risk. Photo: Reuters

PF Withdrawal Online: Provident Fund (PF) is also called the Employees' Provident Fund (EPF) Scheme. This is one of the most popular retirement-oriented investment schemes as it fetches 8.50 per cent interest rate. This PF interest rate is highest among all debt investments as it attracts zero risk. Apart from this, it helps the investor get income tax exemption on up to Rs 1.5 lakh invested in EPF account in a year under Section 80C of the income Tax Act. So, the EPF investment falls under the 'EEE' category where income tax exemption on investment is available on the interest rate earned and the maturity amount after retirement or after attaining the age of 60 years. Under certain conditions, PF withdrawal is allowed subject to fulfillment of some terms and conditions.

Speaking on the rules that allow a provident fund account holder to withdraw money from the PF account, Jitendra Solanki, a SEBI registered tax and investment expert said, "Under the EPFO rules, a PF account holder can go for the PF withdrawal up to 50 per cent of the employees' share in the PF account in case of marriage of the account holder, daughter, son, brother or sister. But, to avail this PF withdrawal benefit, the PF account has to be at least 7 years old. A similar amount of PF withdrawal is allowed for education of the PF account holder or his or her children after class 10th. In this case, also the PF account has to be at least 7 years old."

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Solanki said that PF withdrawal is allowed for the purchase of land, purchase or construction of a house if the PF account is 5 years or more than 5 years old. For land – PF withdrawal is allowed up to 24 times of monthly wages plus Dearness Allowance (DA) while for a house – PF withdrawal is allowed up to 36 times of monthly wages plus DA.

Kartik Jhaveri, Director — Wealth Management at Transcend Consultants said, "PF withdrawal is allowed for the renovation of account holder's house also. Up to 12 times of the monthly wages can be withdrawn from the PF account if the property is registered in the name of the employee or spouse or jointly."

Jhaveri said that to avail this PF withdrawal facility, the PF account has to be at least 5 years old. He said that after the recent change in the PF rules if the PF account holder attains 57 years of age, he or she can go for up to 90 per cent PF balance for withdrawal.

PF withdrawal online process:

The Provident Fund or PF withdrawal can be done both offline and online. Offline PF withdrawal can be done through the submission of a physical application to the EPFO. However, it can be done online also. To apply for withdrawal of EPF online through EPF Portal, make sure that the following conditions are met:

1] UAN (Universal Account Number) is activated and the mobile number used for activating the UAN is in working condition; and

2] UAN is linked with your KYC i.e. Aadhaar, PAN and bank details along with the IFSC code.

If the above conditions are met, then the requirement of attestation of the previous employer to carry out the process of withdrawal can be done away with.

Here is step by step guide for PF withdrawal process online:

1] Log in at the UAN portal — unifiedportal-mem.epfindia.gov.in/memberinterface/

2] Login with your UAN and password and enter the captcha;

3] Then, click on the tab ‘Manage’ and select KYC to check whether your KYC details such as Aadhaar, PAN and bank details are correct and verified or not;

4] After the KYC details are verified, go to the tab Online Services’ and select the option ‘Claim (Form-31, 19 & 10C)’ from the drop-down menu;

5] The ‘Claim’ screen will display the member details, KYC details and other service details. Enter the last 4 digits of your bank account and click on verify;

6] Click on “Yes” to sign the certificate of the undertaking and then proceed;

7] Now, click on “Proceed for Online claim”;

8] In the claim form, select the claim you require i.e full EPF Settlement, EPF Part withdrawal (loan/advance) or pension withdrawal, under the tab ‘I Want To Apply For’. If the member is not eligible for any of the services like PF withdrawal or pension withdrawal, due to the service criteria, then that option will not be shown in the drop-down menu;

9] Then, select “PF Advance (Form 31)” to withdraw your fund. Further provide the purpose of such advance, the amount required and the employee’s address; and

10] Click on the certificate and submit your application.

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