New Delhi: The Employees’ Provident Fund (EPF) is one of the best savings instruments in India. It is a savings scheme based on contribution where both the employee and the employer contribute to create a monetary fund which will come in handy to the employee after retirement. The employee can withdraw the corpus subject to certain rules of the EPF.
Here it must be remembered that people withdraw the EPF after their retirement. However, there are some EPF withdrawal rules. One can make three different types of PF withdrawals, namely PF final settlement, Pension withdrawal benefit and PF partial withdrawal.
EPF partial withdrawal rules
There are some rules one must remember before thinking of making a partial withdrawal from the EPF account:
A person cannot make partial or full withdrawals from the EPF account till the time he or she is employed.
If the person is unemployed for one month, then he or she can withdraw 75 per cent of the funds.
If a person wants to withdraw Rs 50,000 or more from the corpus within five years of opening the account, then there will be a TDS of 10 per cent if he or she has a PAN card or 30 per cent if the person does not have a PAN card.
One has to be in service for some years before the person can avail of a loan against the PF savings.
When can you withdraw money from EPF?
Unemployment
A person can withdraw up to 75 per cent of the total amount in the EPF if he or she has been unemployed for over a month. The account holder can withdraw the remaining amount if he or she has been unemployed for over 2 months.
Education
A person can withdraw up to 50 per cent of the EPF amount to pay for their higher education or for their children’s education cost after class 10. However, the person must have contributed for a minimum of 7 years towards the EPF account.
Marriage
As per the PF withdrawal rules, one can withdraw up to 50 per cent of the employee’s share to pay for the expenses of a marriage. However, for this, one must complete 7 years of PF contribution.
Specially-abled Individuals
Those account holders who are specially-abled can withdraw 6 months of basic wage with DA or the share of the employee with interest.
Medical Emergencies
One can withdraw the EPF amount for urgent medical treatments. One can use this facility for self or one can use the money to treat immediate family members.
Buying Residential Property or Land Plots
If a person wants to buy land, then he or she can withdraw 24 times of monthly basic salary plus dearness allowance. If a person can buy a house, he or she can withdraw up to 36 times of monthly basic salary plus dearness.
EPF withdrawal process on UAN
Step 1: First go to the UAN portal and log in with your UAN and password. Enter the captcha and click on the ‘Sign In’ button.
Step 2: Go to the tab ‘Manage’ and select ‘KYC’.
Step 3: After the KYC details are verified, go to the tab of ‘Online Services’ and select the option ‘Claim (Form-31,19,10C&10D)’ from the drop-down menu.
Step 4: Enter member details, KYC details, other service details and bank account number and click on ‘Verify’.
Step 5: Click on Yes and then proceed.
Step 6: Then go to the ‘Proceed for Online Claim’ and select EPF partial withdrawal under the tab ‘I Want To Apply For’.
Step 7: Select ‘PF Advance (Form 31)’ for fund withdrawal and give the purpose of withdrawal, the amount required and the employee’s address.
Step 8: In the last step, apply by clicking on the certificate.
It must be remembered that people withdraw from the EPF after their retirement. However, there are some EPF withdrawal rules which allow for partial withdrawal of the money. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
