How to Withdraw PF Online & Offline?

The Employees’ Provident Fund (EPF), also known as PF (Provident Fund), is an obligatory savings and retirement plan for employees working in a qualifying organization. Upon retirement, employees can rely on the funds accumulated in this scheme.

According to the EPF regulations, employees are required to contribute 12% of their basic pay each month to this fund. The employer matches this contribution and deposits it into the employee's PF account. The funds in EPF accounts accrue interest on an annual basis.

Upon retirement, employees have the option to withdraw the entire amount accumulated in their EPF. However, this article outlines the process of making premature withdrawals from the EPF account, subject to specific conditions being met.

Different Ways to Withdraw the PF Amount

The withdrawal of the PF amount can be made through both offline and online methods. Let's discuss each process separately.

How to Withdraw the PF Amount Offline?

The process of offline PF withdrawal has been discussed below:

Step 1: Retrieve the Composite Claim Form from the authorized website by downloading it.

Step 2: If you choose to apply for EPF withdrawal using the Composite Claim Form (Aadhaar), you need to link your Aadhaar number to your primary bank account (Aadhaar seeding).

Provide your bank account details and complete the activation process through the portal. However, if you opt for the Composite Claim Form (Non-Aadhaar), it is not mandatory to link your Aadhaar card.

Step 3: Fill out all the necessary information on the form.

Step 4: Get the form attested by your employer.

Step 5: Submit the form to the relevant EPFO office in your jurisdiction.

How to Withdraw the PF Amount Online?

The following are the steps for withdrawing the PF amount online:

Step 1: Visit the EPFO Portal's Member e-Service Portal.

Step 2: Sign in to your account using your password, UAN, and Captcha.

Step 3: Navigate to the 'Online Services' tab and select 'Claim (Form-19, 31, 10C & 10D)'.

Step 4: A new webpage will open where you need to provide the correct bank account number linked to your UAN.

Step 5: Click on 'Verify'.

Step 6: After verifying the bank account details, you need to confirm the terms and conditions of the Employees’ Provident Fund Organisation.

Step 7: Select 'Proceed for Online Claim'.

Step 8: In this step, you need to select the reasons for the withdrawal from the available drop-down list. It's important to note that the options displayed in the list are based on your eligibility.

Step 9: Once you select the withdrawal or advance reasons, you must provide your address.

Step 10: If you are claiming an advance, you need to specify the amount and upload the scanned copy of the required documents as per the instructions of the Employees’ Provident Fund Organisation.

Step 11: Click on 'Terms and Conditions'.

Step 12: Select 'Get Aadhaar OTP'.

Step 13: An OTP will be sent to your registered mobile number. Enter the OTP in the given box.

Step 14: After successfully entering the OTP, your online claim to withdraw the PF amount will be submitted.

Note: To withdraw the PF amount online, individuals need to activate their UAN and link it with KYC details such as Aadhaar, PAN, and bank information.

Once all the necessary conditions have been fulfilled, individuals can easily claim for EPF withdrawal. The online process provides convenience for withdrawing the PF amount.

When Can EPF be Withdrawn?

There are two available forms for withdrawing the EPF. Let's explore them:

Complete Withdrawal

The complete withdrawal of the PF amount is allowed only under the following circumstances:

1. Upon reaching retirement age (on or after your 58th birthday).

2. In the unfortunate event of your death before retirement age, your nominee can withdraw the accumulated funds.

3. If you remain unemployed for at least one month, you are eligible to withdraw up to 75% of the total amount. If your unemployment extends beyond two months, you can withdraw the remaining balance as well.

Please note: If you switch employers but do not remain unemployed for two or more months, you cannot withdraw the entire amount from your EPF account.

Partial Withdrawal

In certain situations, you can make partial withdrawals from your PF account. These circumstances include:

What is PF Withdrawal Limit?

EPFO permits withdrawals from the employee's EPF account, subject to certain limits based on the purpose of withdrawal. The following table provides a detailed explanation of these limits:

Documents Required for EPF Withdrawal

The following documents are necessary when applying for PF withdrawal:

• Composite Claim Form
• Two revenue stamps
• Bank account statement (The bank account should be solely in the name of the PF holder while he/she is alive)
• Identity proof
• Address proof
• One blank and canceled cheque with a clearly visible IFSC code and account number
• Personal information, such as the father's name and date of birth, should accurately match the details provided in the identity proof.

If an employee wishes to withdraw their PF amount before completing five years of continuous service, they are required to provide ITR Forms 2 and 3 as evidence, demonstrating a detailed breakdown of the entire amount deposited in their PF account each year.

Conclusion

Although the primary purpose of accumulating funds in the EPF account is to create a retirement corpus for members, they have the option to withdraw a portion of the accumulated corpus before the designated retirement age.

However, it is strongly advised against withdrawing the EPF corpus before retirement. This is because early withdrawals from the EPF are not considered tax-deductible income for employees.

Instead, they are treated as taxable income if withdrawn before retirement. Therefore, it is advisable to allow the corpus to accumulate and withdraw it only after retirement rather than withdrawing it prematurely.

Frequently Asked Questions

Q1: What is the typical duration for processing a withdrawal of the PF amount?

The duration for processing PF withdrawal varies depending on the chosen application method, as explained above:

• Applying for EPF withdrawal online typically takes around 3 working days for clearance.
• On the other hand, offline EPF withdrawal applications may take up to 20 days to process.

Q2: What is the maximum number of times you can withdraw the PF amount?

Early withdrawals from EPF are allowed in specific situations and are subject to certain restrictions. These are discussed below:

• Individuals seeking to withdraw the PF amount for marriage-related expenses are permitted to do so a maximum of three times.
• Those withdrawing EPF for purchasing a plot, house, or constructing a home can apply for a one-time EPF advance claim.
• In case of medical emergencies before retirement, there is no strict limit on the number of withdrawals.
• For funding post-matriculation education, individuals can make three withdrawals of the PF amount as an advance.