PF Withdrawal Rules

The Provident Fund is a retirement savings scheme that is backed by the government with the aim to provide financial stability and security to employees. As it is a retirement savings scheme, it has specific rules for withdrawal of the funds to ensure long-term savings. Knowing and understanding these rules can help you plan your finances effectively when you require emergency funds.

Types of PF Withdrawals

There are two types of Provident Fund withdrawal rules, rules for partial withdrawal and for full withdrawals. However, before reading on about the full and partial withdrawal rules, let’s take a look at the general withdrawal rules of PF:

• If an individual withdraws ₹50,000 or more from the corpus within 5 years of opening the EPF account, a TDS of 10% will be levied (if they have a valid PAN Card) or 30% (if they do not have a PAN Card).
• Loan against PF is available however, you can only avail the service after being in service for a certain number of years.
• It is not required to withdraw the balance from the old PF account when changing jobs. The money can be easily transferred if the UAN is active and relevant forms are submitted.
• Money in the EPF account can be fully withdrawn only after retirement.
• Partial withdrawals are allowed under specific circumstances.
• TDS will not be deducted if the entire amount is less than ₹50,000.
• EPF status can be checked online through EPFO if the UAN and Aadhar are linked and approved by the employer.
• The EPF subscriber must declare unemployment to withdraw the EPF amount.
• As per the old rule, 100% EPF withdrawal is allowed after 2 months of unemployment.

Rules for PF Full Withdrawal

The public provident form can be fully withdrawn only after retirement or under certain circumstances such as being unemployed for more than 2 months, permanent disability, or the death of the account holder. Given below are the PF withdrawal rules for fully withdrawing from your PF account:

• Retirement: You can withdraw the entire PF balance when you retire at the age of 58. Allowing you to have financial stability in your post-retirement years.
• Unemployment: If you resign and remain unemployed for at least two months, you can withdraw up to 75% of your PF balance after the first month of unemployment and the remaining 25% if the unemployment period extends to two months.
• Permanent Disability: In case of permanent disability, you can withdraw the entire PF amount, to provide financial support during challenging times.
• Death: In case of death, the nominee or beneficiary can claim the entire PF amount, to provide financial support for the family.

Rules for PF Partial Withdrawal

In case you need emergency funds, you can withdraw your PF partially under certain conditions. These conditions can be a medical emergency, higher education, marriage or to purchase or construct a residential house. Here are the details of availing partial withdrawals for PF:

• Medical Emergencies: You can withdraw up to six months’ basic wages and dearness allowance or your share of contributions with interest, whichever is lower, to cover medical expenses for yourself or immediate family members.
• Education: Up to 50% of your contribution can be withdrawn to fund higher education for yourself or your children after passing class 10.
• Marriage: You can withdraw up to 50% of your contribution to cover marriage expenses for yourself, your children, or siblings.
• Home Purchase or Construction: You can withdraw up to 24 months’ basic wages and dearness allowance or the total of you and your employer’s share with interest, whichever is lower, to purchase land or a house.
• Home Loan Repayment: You can withdraw up to 36 months’ basic wages and dearness allowance or the total of you and your employer’s contribution with interest to repay home loan EMIs.
• Home Renovation: You can withdraw up to 12 months’ basic wages and dearness allowance or your share of the contribution with interest for home renovation or improvement.

Steps to Apply for PF Withdrawal

To be able to withdraw from your PF account, you will need to apply online or offline. Below are the steps you can follow:

PF Withdrawal Online Application

• Step 1: Visit the official EPFO website – www.epfindia.gov.in
• Step 2: In the ‘Services’ tab, click on ‘For Employees’
• Step 3: You can then click on ‘Member UAN/Online service (OCS/OCTP)’ which is available in the ‘Services’ section.
• Step 4: You can then log in to your account with your UAN and password. Then enter the captcha code. Then click ‘Sign in’.
• Step 5: Under the ‘Manage’ tab, click on the KYC option.
• Step 6: Scroll down to the bottom of the page and click on ‘Digitally approved KYC’. You will need to check your details for accuracy.
• Step 7: If the details are correct, click on the ‘Online Service’ from the top of the page then click on ‘Claim Form-31, 19 and 10C’.
• Step 8: Enter the last four digits of your bank account number and click ‘Verify’.
• Step 9: Once the verification is done, a certificate of undertaking will pop-up, then click ‘Yes’ to agree to the terms and conditions.
• Step 10: You can then click on ‘Proceed for online claim’, then select PF Advance Form-31 as well as the reason for withdrawal in the ‘Purpose for which advance is required’ field.
• Step 11: You will need to submit certain documents to support your reasons for withdrawal. After which you can submit the application.
• Step 12: Your employer will then accept the withdrawal request after which your withdrawn amount will be deposited into your bank account.

PF Withdrawal Offline Application

• Step 1: Download the Form from the EPFO website.
• Step 2: You can use the Composite Claim Form (Aadhaar) if your bank account details and Aadhaar number are linked on the UAN portal.
• Step 3: Fill in the form and submit it to the EPFO office without the need for the employer’s signature.
• Step 4: If your Aadhaar number is not linked on the UAN portal, you can use the Composite Claim Form (Non-Aadhaar).
• Step 5: Fill in the Non-Aadhaar form and submit it with the employer’s attestation to the EPFO office.
• Step 6: Provide all the necessary supporting documents to support your withdrawal claim.

Eligibility Criteria for PF Withdrawal

The eligibility criteria for PF withdrawal is as follows for both partial and full withdrawals:

Full Withdrawal Eligibility

• Retirement: Permitted at age 58.
• Unemployment: Allowed after two months of unemployment.
• Permanent Migration: Permitted when relocating permanently abroad.
• Medical Conditions: Allowed for severe health issues.

Partial Withdrawal Eligibility

• Higher Education: Allowed after seven years of service.
• Marriage: Allowed after seven years of service.
• Home Purchase/Construction: Allowed after five years of PF contribution.
• Home Renovation: This facility can be availed twice – once after five years of house construction and again after ten years.
• Home Loan Repayment: Allowed after ten years of contributing to PF.
• Before Retirement: You are allowed to get 90% of EPF corpus one year before retirement that is no less than above the age of 54.

Documents Required for PF Withdrawal

In order to successfully withdraw your PF, you will need to submit certain documents. These documents will differ from fully withdrawing your PF and partially withdrawing your PF. To know which documents you need to submit you can check below:

Full Withdrawal Documents

To fully withdraw your Employee Provident Fund (EPF) balance, you need the following documents:

• Form 19: For the final settlement of your PF account.
• Form 10C: For pension withdrawal benefits if you have less than 10 years of service.
• Form 10D: For monthly pension claims if you have more than 10 years of service.
• Aadhaar Card: For identification and verification.
• Bank Account Details: A cancelled cheque or a copy of your passbook showing your account number and IFSC code.
• PAN Card: For tax deduction.
• Declaration Form: To state whether you are unemployed or retired.

Partial Withdrawal Documents

For a partial withdrawal from your Provident Fund, you need the following documents:

• Form 31: For partial withdrawals.
• Medical Certificate: If withdrawing for medical treatment.
• Education Certificate/Proof of Admission: If withdrawing for higher education.
• Marriage Invitation/Card: If withdrawing for marriage expenses.
• Property Purchase Agreement: If withdrawing for purchasing a house or land.
• Home Loan Statement: If withdrawing for home loan repayment.
• Aadhaar Card: For identification and verification purposes.
• Bank Account Details: A cancelled cheque or a copy of your passbook showing your account number and IFSC code.
• PAN Card: For tax purposes, especially if withdrawing more than ₹50,000.

Tax Implications of PF Withdrawal

Your provident fund when withdrawn is liable for taxes and understanding the tax implications is important for managing your finances effectively. The tax levied on your withdrawals will depend on several factors like the amount being withdrawn and the years of contribution. Here are the details on tax-free withdrawals and taxable withdrawals:

Tax-Free Withdrawals

• After 5 Years of Continuous Service: If you have completed 5 years of continuous service, your PF withdrawal is tax-free. This applies to both you and your employer’s contributions, as well as the interest earned on them.
• Retirement or Superannuation: Withdrawals made upon retirement or superannuation are tax-free.
• Medical Emergencies: Withdrawals for medical emergencies, such as treatment for specified illnesses, are tax-free.

Taxable Withdrawals

• Before 5 Years of Service: Withdrawals made before completing 5 years of continuous service are subject to tax. The amount withdrawn will be added to your income and taxed as per your applicable income tax slab.
• TDS Deduction: If the withdrawal amount is more than ₹50,000, Tax Deducted at Source (TDS) will be applicable. TDS is deducted at 10% if you have provided your PAN, and 30% if you have not provided your PAN.
• Form 15H/Form 15G: These forms can be submitted to avoid TDS deduction if your total income is below the taxable limit. However, these forms are not applicable for PF withdrawals.

Besides checking PF withdrawal rules, you can also check out more about EPF by clicking on the table below:

Beside EPF, you can also check out more on different saving schemes from below: