I hope you filed your tax return for 2015-16 already. If not do it now and everify your ITR-V online with 6 easy ways. Here @smartmoneygoal, our aim is to arm you with useful advice on tracking your income and savings. EPF – Employee Provident Fund is one such compulsory retirement scheme for employees that forces you to save for life post-retirement.

But, sometimes life gets rough and you need extra funds for a pressing concern. It could be for various reasons from home loan to medical emergency for EPF withdrawal. Whatever the reason, you decide to withdraw funds from your EPF.

This guides shows you the best ways to do this, points to keep in mind before seeking EPF withdrawals. Also, the steps to ensure your application isn’t rejected.

EPF Withdrawal – Rules, Process and Forms

Claim EPF withdrawals online

The EPFO has made digitization a priority. This makes it easier to claim partial and full EPF withdrawal. You can simply go to the site, download a form, fill it up and upload it or sent it to regional office.

Restrictions and tax implication on EPF withdrawal

While the finance ministry has revoked the plan to tax 60% of EPF withdrawal in 2016, other restrictions and tax deductions still remain.

The age of retirement for EPF purposes has been increased from 55 to 58. You can only withdraw 90% of your EPF account before your turn 57. But you are allowed to remove entire EPF balance before you turn 58 in the following circumstances.

1. You lost/resigned your job and remained unemployed for 2 months or more
2. You ceased to be an employee as company closed down or was acquired
3. Your services were terminated due to downsizing or mass retrenchment
4. You retired because of permanent injury or physical and mental infirmity
5. You availed voluntary retirement scheme
6. You migrated from India to permanently settle down abroad

Tip: Remember you can’t withdraw full PF when you are still employed with a company. You can only make partial withdrawals, and withdraw or transfer previous employer balances.

Before you place a claim, you should know whether you have to pay TDs or you fulfil certain conditions to avoid it.

TDS scenarios:

• From June 2015, any pre-mature withdrawals of Rs 50000 or above from your EPF account comes with TDS. You pay 34.6% tax if you don’t have PAN number and 10% if you have a PAN.
• TDS is also applicable on withdrawals, if you have less than 5 years of service (with one or more employers). The no of years you hold a EPF account is immaterial.
• If you’ve worked for more than 4 years in a company, joined another one, but withdraw PF from earlier job instead of transferring it, you will have to pay tax

For e.g.: If you have worked with Company X for 4 years and Business Y for 1½ years, you have completed 5½ years of service. But if you withdraw PF earned at Company X, your service period is considered as 4 years. You have to pay tax of 10% or 34.6%, if you’re total income is above 2.5 lakhs.

To avoid paying TDS:

• Withdraw after 5 years of continuous service (full 60 months with one or more employers) for one of the approved reasons mentioned in the next section.
• Make sure your partial or total withdrawal request comes under one of the special cases mentioned in the guide.
• Use Form 15H to withdraw before 5 years of service, provided your EPF balance is below 2.5 lakhs and you have no other taxable income.
• To comply with 5-years requirement, transfer your PF money from previous job to EPF account and then withdraw.

Ultimate PPF guide on Public Provident Fund

EPF Partial Withdrawal Options Without TDS

Are you worried you cannot access funds before you retire or have to pay TDS anytime you seek an PF advance?

The EPFO provides a few options to subscribers to claim partial PF along with procedures to apply for such loans.

You’re not required to refund any withdrawal used by you, but unused funds have to be returned to EPF account with penal interest.

Salary for this purpose refers to Basic Pay + Dearness Allowance.

Years of service refers to total number of years with one or many employers.

1.   Purchase, construction or acquisition of house or flat –

The following conditions apply:

• Withdrawal from EPF permitted once in working life.
• Withdrawal limit allowed is least of the three – minimum of 36 times of your salary or total contribution by you and employer or cost of property.
• Completed 5 years of service.
• Ownership in name of member, name of spouse, or joint ownership with spouse
• Declaration Form signed by employee and employer.
• No proofs like sale deed or registration papers required.

2.   Purchase or acquisition of site or land –

The following conditions apply:

• Withdrawal from EPF permitted once in working life.
• Withdrawal limit allowed is least of the three – minimum of 24 times of your salary or total contribution by you and employer or cost of property.
• Completed 5 years of service.
• Ownership in name of member, name of spouse, or joint ownership with spouse.
• Declaration form signed by employee and employer.
• No proofs like sale deed or registration papers required.

3.   Alternations or improvements to property –

The following conditions apply:

• Withdrawal from EPF permitted once in working life.
• Withdrawal limit allowed is least of the three – minimum of 12 times of basic pay or total contribution by you or cost of changes.
• House purchase or constructed 5 years before withdrawal claim.
• Ownership in name of member, name of spouse, or joint ownership with spouse.
• Declaration Form signed by employee and employer.

Download the standard Declaration Form for home related withdrawals from EPFO site.

4.   Repayment of home loan –

The following conditions apply:

• Withdrawal from EPF permitted once in working life.
• Withdrawal limit allowed is least of the three – minimum of 36 times of your salary or total contribution by you and employer or outstanding loan amount (principal + interest).
• Completed 10 years of service.
• Ownership in name of member, name of spouse, or joint ownership with spouse.
• Outstanding loan Certificate from you bank or lender and signed Form 31 submitted.

5.   Medical treatment of employee –

The following conditions apply:

• Withdrawal from EPF permitted more than once in working life
• Withdrawal limit allowed is least amount of the two – 6 times of your salary or total contribution by you along with interest earned on it
• Hospitalized for one month or more.
• Permitted charges allowed for major surgeries and critical illnesses.
• Certificate from your doctor and signed Form 31 submitted.

6.   Medical treatment of employee’s family –

Family members for this purpose includes spouse, children and dependent parents. The following conditions apply:

• Withdrawal from EPF permitted more than once in working life.
• Withdrawal limit allowed is least amount of the two – 6 times of your salary or total contribution by you along with interest received on it.
• Hospitalized for one month or more.
• Permitted charges allowed for major surgeries and critical illnesses.
• Certificate from your doctor and signed Form 31 submitted.

7.   EPF withdrawal for education or marriage expenses –

This withdrawal is allowed to use for your own marriage or that of brother, sister or children. Withdrawal is allowed for post matriculation education of your children subject to following conditions:

• Withdrawal from EPF permitted 3 times in working life.
• Withdrawal limit allowed is 50% of your contribution along with interest received on it.
• Completed 7 years of service.
• Self-Declaration Form signed by you and Form 31 submitted.

8.   EPF withdrawal by physically handicapped employee –

This withdrawal is allowed for purchase of any handicap-related equipment (like wheelchair, artificial foot) that helps you work. The following conditions apply:

• Withdrawal from EPF permitted twice in working life but with 3-year gap between two loans.
• Withdrawal limit allowed is lower of the three – 6 months of your salary, your contribution along with interest received on it or cost of equipment.
• Available from first year of service.
• Certificate by Doctor and Form 31 submitted to your employer.

9.   EPF withdrawal before retirement –

This withdrawal is allowed after you complete 57 years of age and final settlement within one year of retirement. The following conditions apply for EPF withdrawal before retirement:

• Withdrawal limit allowed is 90% of PF amount.
• Remaining 10% in the last year of retirement.
• Form 31 or Form 31 UAN submitted.

Different forms for EPF withdrawal/advance claims

As you know, your EPF contribution has two components – Provident Fund (PF) and Pension Scheme.You have various options and must select EPF Withdrawal form accordingly.

You will have to submit the right form for full or partial EPF claims and Pension Fund settlement. The claims are subject to your current age and number of years of service.

A.  Form 19/ Form 19 UAN for Final Settlement of PF

When you claim full PF due to unemployment, permanent disability, or retirement, you should use old Form 19 through old employer or EPF office or use 19 UAN through online process.

1. Download Form 19 or 19 UAN from the site.
2. You will have to provide various details in the form.
3. If you don’t have a UAN, your employer has to attest and sign Form 19 before it is processed by the EPF office.

4.Fill Form 19 UAN  and submit without employer attestation.

5. Provide required proof mentioned for each type of claim.
6. Once approved, the requested amount is credited directly to your bank account.
7. If you have a UAN, you can send the claim form 19 UAN directly to EPFO without seeking permission from your employer.

B.  Form 31/ Form 31 UAN for partial withdrawal of PF

1. Download Form 31 or 31 UAN from the site.
2. You will have to provide various details in the form.
3. If you don’t have a UAN, your employer has to attest and sign Form 31 before it is processed by the EPF office.

4. Fill Form 31 UAN and Submit without employer attestation.

5. Provide required proof mentioned for each type of claim.
6. Once approved, the requested amount is credited directly to your bank account.
7. If you have a UAN, you can send the claim directly to EPFO without seeking permission from your employer.

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8.   Form 10C and 10D for Pension Fund (EPS) withdrawal

The following conditions apply to pension fund claims:

1. You can withdraw your pension fund or opt for security certificate, if you have completed less than 10 years of service.
2. You only get a security certificate, if you have more than 10 years of service
3. You become eligible for reduced pension when your age is between 50-58 years
4. You become eligible for pension when you complete 58 years

How to claim pension fund withdrawals

1. Use Form 10C or 10C UAN to withdraw pension or get security certificate.

New Form 10C UAN                                                           

 

To claim your pension benefits when you are unemployed or physically unable to work, use this table as a guideline.

Your Age	EPS Contribution	Form	Claims Allowed
Less than 50 years	Less than 10 Years	10C	Withdrawal or Scheme Certificate
50-58 years	Less than 10 Years	10C	Withdrawal or Scheme Certificate
Above 58 years	Less than 10 Years	10C	Withdrawal
Less than 50 years	More than 10 Years	10C	Only Scheme Certificate
50-58 years	More than 10 Years	10C 10D	Scheme Certificate Reduced Pension
Above 58 years	More than 10 Years	10D	Monthly Pension

 

2. Use Form 10D to get reduced pension or monthly pension –

 

 

Member’s Age	Service Status	EPS Contribution	EPF Form	Claims
Less than 58 years	Working	–	10D 51F	For Monthly Pension EDLI Insurance
Less than 58 years	Not Working	–	10D	For Monthly Pension
More than 58 years	Working	More than 10 Years	10D 51F	For Monthly Pension EDLI Insurance
More than 58 years	Not Working	Less than 10 Years	10C 51F	For Withdrawal EDLI Insurance
More than 58 years	Working	More than 10 Years	10D	For Monthly Pension
More than 58 years	Not Working	Less than 10 Years	10C	Withdrawal

 9.   Form 20 and 10C/D for EPF Death Claim Settlement

When EPF Member dies, then his or her Legal heir/Nominee/Beneficiary/ can claim PF and pension funds.

1. Use Form 20 for Final Settlement of PF

1. Use Form 5IF for EDLI Insurance claim, if deceased member was in service.

1. Use Form 10C to claim EPF withdrawal where member completed less than 10 years of service.

Old Form 10C

Use Form 10D for monthly pension where deceased member completed 10 years of service.

The claimant requirements are:

• Spouse or child below 25 years of age.
• Nominee where member had no family.
• Dependent parents where member had no family and has not nominated anyone.

Documents required

• Death certificate.
• Guardianship certificate issued by court of law, if application by someone not a natural guardian of minor member, nominee, family member or legal heir.
• Copy of blank or cancelled cheque for electronic transfer to claimant’s account.

This table serves as a guideline to help you know your eligibility for withdrawal.

Member’s Age  at Death	Last Service Status	EPS Contribution	EPF Form	Claims
Less than 58 years	Working	–	20 51F	Final PF settlement Scheme Certificate EDLI Insurance
Less than 58 years	Not Working	–	20	Final PF settlement Pension
More than 58 years	Working	More than 10 Years	20 51F	Final PF settlement Monthly Pension EDLI Insurance
More than 58 years	Not Working	Less than 10 Years	20 10C 51F	Final PF settlement Withdrawal EDLI Insurance
More than 58 years	Working	More than 10 Years	20	Final PF settlement Monthly Pension
More than 58 years	Not Working	Less than 10 Years	20 10C	Final PF settlement Withdrawal

3 ways to claim full or partial EPF withdrawal or EPS settlement

1. Apply EPF withdrawal through previous employer:

If you enjoy good terms with your previous employer and don’t have a UAN number yet, you can get your PF claim approved through HR department of ex-employer.

1. Download claims Form 19, 31 and 10C/10D
2. Fill the details including that of employer and EPF account
3. Copy of blank or cancelled cheque
4. Get it attested by employer
5. Have it sent to EPF office
6. Your claim will be processed within three months

2. Apply with region office:

As per the earlier rules, you needed your employer’s attestation and signature on claim form for your EPF  withdrawal request to be approved by EFPO. A lot of employees faced a problem in getting the consent.

Reasons you may not receive a consent from your employer:

• The company or factory has closed down and there is no contact person,
• The employer may wilfully delay signing your claim
• You may have let the job without serving notice period or get fired from the job and employer is not inclined to help you.

1. Download claims Form 19, 31 and 10C/10D
2. Fill the details including that of employer and EPF account
3. Copy of blank or cancelled cheque
4. Attach letter explaining why you didn’t send form through past employer
5. Attach copies of appointment letter, ID card, payslip, and form16
6. Attach an indemnity bond (affidavit) on Rs100 stamp paper, if possible
7. Attach a copy of your identity proof and address proof.
8. Get all documents including claim form attested by bank manager, gazetted officer, magistrate, notary public, post master, or village panchayat president
9. Send it to your regional EPF office
10. Your claim will be processed within three months.

 

3. Apply with Universal Account Number or UAN region office:

To reduce the role of employer in PF settlement claims, EPFO offers you a membership account with a UAN number. You can even collate all your PF numbers under one common account.

With the EPFO planning to allow withdrawal through their online site by the end of 2016, this is the perfect time to get you a UAN. Check our EPF balance check enquiry guide for details.

1. Apply for a UAN number with employer.
2. Download new claim forms 19 UAN, 31 UAN and 10C/10D UAN.
3. Fill in the details in the shorter and simplified form.
4. Submit it to regional office or upload online at EPFO website.
5. Your claim will be processed within 7-10 days and amount directly credited to your account.

Some reasons for non-approval of withdrawal claims:

You may have applied for PF claims through your employer using old forms or directly through new form with UAN account. Yet your claim gets rejected. This is likely because of:

• Signature mismatch – If you have used a different signature on claims forms by mistake, get an affidavit made and attested by employer. Submit it to EPF office.

• Name errors – If your name or father’s name has an error, get it rectified by your employer and submit claim form.

• Closed earlier account – To rectify this, make an affidavit and get your former employer to attest it.

• Recent PF contribution not submitted by employer – In this case, you can request your employer to submit it or raise a complaint with regional EPF office.

• Employer has no record of your EPF account number – Use the UAN method to get your withdrawal. If you don’t have UAN account, provide your employer with the number from your old pay-slip, or write to PF commissioner with your details and ask for your PF number.

Tips:

Your EPF is a retirement corpus. Avoid withdrawing money unless you have no other financial options left. Instead of claiming old PF, transfer it to new account and earn more interest on your fund contributions. Was this EPF withdrawal procedure process helpful?

Have you withdrawn your EPF or pension fund? Did you face any problems with your EPF claims? Share your experiences in the comments for other readers to benefit.

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