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Friday, December 3, 2010

Can I Withdraw Money from My Employee Provident Fund (EPF) Account?


Almost all of us are working for a company and we contribute a small percentage of our monthly salary into our EPF accounts. We all know that PF is a great saving instrument and it will help us generate a corpus for our retirement. All that being said, many of us do not know the fact that we can withdraw money from our PF account for emergency cash requirements. Yes, you read me right. WE CAN withdraw money from our PF accounts. After all, it is our money and we definitely have the right to take it when we need it the most.

A Word of Caution before we proceed:

The Purpose of the PF account is to generate a corpus for our retirement. So, we cannot and should not treat it like a bank account. We cannot try and withdraw every few months of whatever is left in our account. If possible, try to manage the situation without having to dip into the PF Savings. If nothing works, then check if you meet any of the below mentioned criterion and if you do, get the money from your PF Account.

Premature withdrawals can be made from your EPF corpus if the reason falls under any of the below mentioned categories and you satisfy all the necessary requirements.

Justified Reasons for PF Withdrawal
Reason Requirements Amount You Can Withdraw No. of Times allowed
Marriage or Education 1. Must have completed 7 years of Service
2. Can withdraw for self/children/siblings marriage
3. Can withdraw for self/childrens education
50% of the corpus 3 times during your Total service
Medical Treatment 1. Can withdraw for medical treatment of self/children/spouse/parents
2. No Restrictions on No. of years of service
Total corpus or 6 times your Monthly Salary (Whichever is lesser) No Restrictions (Anytime)
Purchase or Construction of House 1. Must have completed 5 years of Service
2. House must be registered in your name or spouse's name or jointly owned
Upto 36 times your Monthly Salary Only Once in your Total Service
Repayment of Housing Loan 1. Must have completed 10 years of service
2. House must be registered in your name or spouse's name or jointly owned
Upto 36 times your Monthly Salary Only Once in your Total Service
Purchase of Plot 1. Must have completed 5 years of service
2. House must be registered in your name or spouse's name or jointly owned
Upto 24 times your Monthly Salary Only Once in your Total Service
Alteration of House 1. Must have completed 5 years of Service
2. House must be registered in your name or spouse's name or jointly owned
Upto 12 times your Monthly Salary Only Once in your Total Service
Pre-Retirement 1. Must be 54 years of age or
2. One year before Retirement whichever is Later
90% of your Total Corpus Only Once in your Total Service

Things to Remember:

1. Salary here refers to your basic salary and not your total monthly salary
2. If the actual amount in your PF corpus is not enough to meet the multiple mentioned above, you will get whatever is present in the corpus. For ex: For repaying house loan you can actually get 36 times. If your Basic Salary is Rs. 10,000 you can get upto 3.6 lakhs provided your PF corpus actually has 3.6 lakhs. If your PF Account does not have 3.6 lakhs you will get whatever money is present in your PF Account.

Documents Required:

In the below section, the most important documents required to apply for the withdrawal facility is mentioned. Note that, the term Member here refers to the person on whose name the Employee Provident Fund account is held (a.k.a The Employee/You/Me)

Marriage:

Marriage Invitation card should be submitted along with form as proof for marriage through employer.

Education:

Member should apply in Form 31 through employer. A Bonafide certificate duly indicating the fees payable from the educational institution must be submitted as proof.

For Medical Treatment:

Member should obtain certificate from ESI or from employer that E.S.I. facility are not available for the member. A doctor of the hospital certifies that a surgical operation or hospitalization for 1 month or more is/was necessary. Incase of TB or leprosy etc, a specialist doctor should certify the disease. A certified proof for the said disease has to be submitted along with the application in Form 31 through employer.

Purchase of Flat/House:

House/Flat should be free from encumbrances or Legal Issues. An Agreement with the Flat promoter should be registered under the Indian Registration Act and submitted as proof along with the application form.

Alteration / Modification of House:

The Member must have resided atleast 5 years or more in the house that he/she wishes to alter/modify. I could not find any concrete evidence about the documents required in this case. I assume you will need some sort of quotation that will state the amount you will incur in the alteration of the house from a registered contractor/builder. Without this, there is no way to know if you really are going to alter your house.

Repayment of Loan:

Property must be singly or jointly owned by the Member. Proof of owning the property & repayment of the loan must be submitted along with the application form. The amount will be paid directly to the loan lending agency and will not be released to the member.


To Conclude: As mentioned in the beginning of the article, the purpose of the EPF corpus is to help us post Retirement. It is advisable to leave it as such and reap the full benefits of compounding post retirement. Of course, if it is an emergency the money is all yours to spend.

Happy Saving!!!

Some Additions - 19-Oct-2012:

One of our blog readers had emailed me asking what could he do to withdraw his EPF corpus after he quit his job. The employer too wrapped up and went out of business. So, he is now stuck without know how to get his money. I believe some of our blog readers who resign from a company in not-so-good kind of terms with their current employer too face scenarios where they do not cooperate in the withdrawal of our life savings. So this next section is for them:

What happens if my past employer is Unavailable?

In the rare scenario that your old employer is unavailable (They closed down or for whatever reason) you can still get the Transfer/Withdrawal completed.

In such a case – the employee (you) has to submit an identity proof (PAN Card, Voters ID Card, Ration Card or Passport) and proof of residence (Copy of electricity bill, landline phone bill or drivers license) must be submitted along with the form.

The Withdrawal request is usually attested by the employer involved. In this case, if the old employer around to attest it you can get the form attested by the bank manager (of the bank branch where you hold an account, the account where the PF money will get credited) and then submit it to the PF Office.


Where can I get the PF Forms?

The following website has all the forms you will need with respect to your EPF Accounts.
http://www.epfindia.gov.in/downloads_forms.html


Things to remember:

1. Final settlement withdrawal request can be made only after 2 full months after resignation
2. Any payment above Rs. 2000/- will be done via direct credit into the bank account.
3. Form 19 is for EPF withdrawal and Form 10C is for EPS (Pension) withdrawal
4. EPS withdrawal will be approved only if your PF account was active for a continuous 10 year period.


An Appeal:
If you feel this article would be useful to all your friends and colleagues employed in India, please share the link to them. Let them also get this important information that maybe useful in future.

All - It seems there is some problem with the comments widget for this article because there are more than 200+ comments in this article. So, if you have any queries about this article or EPF Withdrawal leave your comment in the facebook page of this blog and I will answer it. Thank you for the understanding

192 comments:

  1. I wanted to check as wht is my total PF amount. tried to get the details online wth the PF given by my company but still not able to get any info about it. can u let me knw as wht could be the link of the website which can provide the required info..

    Reply....

    ReplyDelete
    Replies
    1. Try this article - http://anandvijayakumar.blogspot.sg/2011/07/breaking-news-for-employee-provident.html

      Delete
  2. Hello sir,
    can u plz tell me that if someone has worked in a company for 3 yrs and left the job and decided to withdraw the EPF amt after 2 yrs so that the cycle of 5 yrs will get completed.Hence in this case the withdrawn amt will be applicable for tax or tax free. kindly suggest.......
    Thanks in advance
    VIVEK

    ReplyDelete
    Replies
    1. Hi Vivek,

      No, the withdrawal will not be taxable if you let the PF Account complete 5 years of existence.

      Anand

      Delete
  3. Hi Anand,
    I have completed 6 years in my company and i had help my parents for my brother's marriage, so i have partially withdrawn the pf amount and i have submitted the invitation proof as well and now suddenly i get a message from pf office saying my request is rejected and its dispatched ...I do not know what is the reason as well and i have spent the money on marriage. Do i have to repay the money to the pf guys again? i am really confused on this, can you help me?

    ReplyDelete
    Replies
    1. Firstly - A Withdrawal is different from a loan. So, I dont think you need to repay the money.

      However, It could have been due to a clerical error - you got both a rejected and a dispatched notification. Wait for further communication form the regional pf office on the next steps. They will contact you definitely if there was any problem/confusion.

      There is not much you or I can do here - except waiting.

      Anand

      Delete
  4. Dear Anand,
    I moved out of India in Oct 2012 and currently working abroad. I have accumulated EPF with my previous two employers in the past 11 years. When I joined my second company at India, I requested for PF transfer from my first company. Now, I would expect both my PFs to be under the same PF A/C number. But, I'm still noticing two different PF numbers in EPF website. Can I consider that the PF transfer didn't happen from my first employer yet? Now, if I want to withdraw my entire accomulated PF, will submitting the withdrawal form to my second employer is enough? OR should I individually contact my first employer to withdraw the PF accoumulated while I was with them? Is there a way to initiate the PF withdrawal on my own from abroad? Appreciate your inputs in this regard.

    ReplyDelete
    Replies
    1. Hi Arun
      Yes, that would mean that your EPF Account did not get transferred and so you need to submit 2 different withdrawal requests.

      Anand

      Delete
  5. Hi Anand,

    I joined XYZ company 3.5 years back and resigned last month and joined another organization after a month's gap. Also my PF account was earlier in "A" location which was opened on my day of joining and which was shifted internally to "B" location 1.5 years back .
    So if I go for withdrawal would my amount be taxable ?

    Please advise

    ReplyDelete
    Replies
    1. If you have exactly completed 60 months or more of total service & PF account, then it will not be taxable.

      If the dates mentioned above are approximations and here is still a few weeks/days till a full 5 year completion, I would suggest you wait till you actually & fully complete 5 years before submitting your withdrawal request.

      Anand

      Delete
  6. Dear Anand,

    I have resigned from ym company before completing 10 years and have relocated to another country. Can i withdraw my pf ?

    Viren

    ReplyDelete
  7. Hi Anand

    I am going to complete 10 years in my current company this month and am planning to resign. Should I complete just 10 years and resign OR I should resign a week before completing 10 years ? I am planning to relocate outside India for permanent settlement and want to withdraw my EPF and EPS in full. Also please tell me about Gratuity, will I get that also while exiting ?

    Thanks,
    Ashish.

    ReplyDelete
    Replies
    1. Hi Ashish,
      EPS Benefits are applicable only if you complete 10 years of service but the money will be paid out after you retire only. So, as of now if you are planning to settle down outside india you will not get the money.

      Gratuity too is paid out based on number of years of service and that differs from organization to organization. You need to check with your organization.

      EPF will be paid to you anytime you want. As you have already completed 5 years the amount will not be taxed.

      Anand

      Delete
    2. Thanks a lot Anand for the reply.

      Regards
      Ashish.

      Delete
  8. Hi Anand, I am working in the current organistation which is in Bangalore since Oct 2006, at the time when I joined my company this organisttion had maintianed their PF account at Gurgoan office then in Mid of 2011 they decided to move our PF accounts from Gurgaon to Krishnarajpuram in Bangalore so techncially we got new PF a/c numbers. So since I have a new PF a/c number since the last 1.5 years how will this be considered by PF office? will they consider this as only 1.5 years of contious contribution in PF account?

    Also, I am planning to buy a flat so will the intial sale agreement work on the stamp paper? or do they require a registered sale agreement? Also, if I completely buy the flat by arranging funds through alternative source and produce the final sale deed as the proof will I still be granted PF advance?

    ReplyDelete
    Replies
    1. Usually when you move from one city to another, a new account is not required and the existing account itself can be transferred. So, if that had happened the system will consider your account as active since 2006 which makes it 6+ years old whereas if your company opened a new account and refunded the old PF corpus then the new account will be only 1.5 years old.

      Usually PF advance is paid out to the builder and not to you. So, once you finish funding the house, you will not receive any payment from the PF Office

      Anand

      Delete
  9. Hi Anand,

    I have gone through your article and almost all of the comments.
    But didnt see a solution for my issue.
    I need to purchase a flat. i need to pay 20% of the total amount initially within 2 weeks time.
    I thought i can manage this amount somehow from my friends and then apply for pf withdrawal to return their amount. but here the problem is if the pf amount goes to the builder directly , i cannot do that.
    Do you have any solution for this ?

    Binu

    ReplyDelete
    Replies
    1. Hi Binu,
      No, there is no solution for this. Unfortunately, to avoid malpractice, the EPF Department gives the money in favor of the builder only and so, there is no workaround for it.

      Anand

      Delete
  10. Hi Anand,

    Very nice article and it is useful for many of us. I have a query. You have mentioned that to do home loan repayment, we should have completed 10 years of service. I have completed 6 years in a company, am I eligible for withdrawing the amount to do home loan repayment? Also what is the maximum amount I can withdraw?

    Thanks

    Regards,
    Prasad

    ReplyDelete
    Replies
    1. Hi Anonymous - You need to complete 10 years to be eligible for withdrawal to repay the home loan and you will get up to 36 times of your monthly salary.

      Sorry.

      Anand

      Delete
  11. Hi Anand,
    It's great to have found out this blog... i am really hooked.

    We are currently NRI for the last 3 years. Now, the issue is that my husband who worked for 15 years in the same company. My queries are
    1. We can no longer stay invested in PF as the three years of company contribution are already over.
    Is this true? We could still stay in the PF but would not get interest.
    2. How do we handle this part if we would like to continue in the PF and also get interest in this PF account
    3. If we could stay with the PF, could we only contribute from our end to keep the account live without the company contribution as my husband has been transferred outside india but with the same company?
    3. If this is not possible, what is the best investment opportunity currently as my husband is 45 years and we would like to use this money for our retirement.
    Your advise would really help us to save for our retirement:-)

    ReplyDelete
    Replies
    1. Hi anonymous, answers below:

      1. No, this is not correct. You can still have your money in the PF Account. The account will be considered dormant and will not draw any interest. The principal you paid up to build the corpus will remain until you want to claim/withdraw it.
      2. You cannot invest in PF if you are not earning an Income in India. EPF Scheme is only for resident indians who work in India and earn an income here. it is not for NRIs
      3. N/A due to reason explained for Q no. 2
      4. You need to come over once to India in order to submit a request for withdrawal. Once you do, your money should reach you in 4-8 weeks. Once you get it, you can formulate an investment portfolio based on your risk appetite.

      Read this article - Investment Portfolio to learn more about how you ca create a portfolio. Once you finish reading it, you can decide the type of portfolio you want and start investing according to the advise provided in each of the types in the blog.

      Thanks
      Anand

      Delete
  12. Hi.

    i have taken some monay from my relative to buy the home in resale in DEC12 & also taken home loan from icici bank. now the property is transferred on my name & i want to withdraw my EPF to pay the loan taken from relative. i am working in current company since 9 year.

    kindly suggest me how i can withdraw PF & what document will be require to submit.

    ReplyDelete
    Replies
    1. Hi Ramesh
      No, you cannot take a loan on EPF to repay your relative. Also, you need to complete 10 years of service to take money for repayment of housing loan. Once you complete 10 years you can try to do so. In that case the money will be given as a cheque in favor of the bank where you have a housing loan.

      Thanks
      Anand

      Delete
  13. Hi Anand,
    I hope you would help my problem.
    I resigned my previous company on March 18, 2013 but got relieved on April 30, 2013.
    You said that final settlement of pf amount will be withdrawn after two months resignation.
    is it after resignation or is it after relieving from the company??
    Can my previous company close my PF account once i resigned??
    how much time requires to close my pf account??

    In my present company they are asking about PF number to transfer but i told them i closed the pf account but i did not get the money yet so they are insisting me provide my PF number.

    Please answer my problems as early as possible



    ReplyDelete
    Replies
    1. Rams,
      Answers below:

      PF Withdrawal request can be submitted by your old employer only after 2 months of getting relieved - i.e., on or after June 30 2013 only. So, the processing will take another 3-4 weeks. So, you can expect the PF money in your bank account by end of July 2013.

      Yes, your old employer can close your PF account if you want. If you signed the PF withdrawal papers and submitted them to your old employer, he can do so.

      Closing of PF account usually takes 3-4 weeks of processing time - from the date of submission. As I said above, your old employer can submit the closing request only after 2 months of your relieving date.

      You cannot provide the PF account number if you submitted the withdrawal forms to your old employer. Just because you did not get the money does not mean you can submit the number to your new employer. Technically speaking, since you have joined a new job, you should not have submitted the request to close your PF Account. Instead you should have submitted a transfer request.

      So, you can talk to your old employer and if he is ok, ask them to cancel the closure request because they would not have submitted the forms and provide the PF number to your new employer to get the money transferred.

      There was an article titled Can I transfer my PF Account to my new Employer? in my blog last year covering this topic. You can read it for more details.

      Anand

      Delete
    2. thank you so much. I submitted the withdraw form.

      Delete
  14. hi anand
    its great to find such usefull infomation.
    plz tell me the final settlement will be done after 2 months resignation or after 2 months relieving

    ReplyDelete
    Replies
    1. Hi Anonymous,
      Final Settlement of the salary, any arrears etc between you and the company will vary from one company to another but it usually happens within 3-4 weeks of you getting relieved. This article is only about EPF and not your final settlement from your employer

      In case of EPF, the processing for withdrawal of the EPF balance will happen after 2 months of getting relieved as well.

      Resignation date is not taken into consideration for any processing because you may withdraw your resignation anytime you want.

      Anand

      Delete
  15. hai i am karan verma... I worked in company for around six months. They have deducted the EPF for the six month. Now i have joined the new company , i told them to transfer my PF account.But they said that Your new account will opended Because of company code...Company code reflacts end of the account number...So i want to withdrawl the money in previous pf account.. There was a dispute with old company, I think they never will sign my pf withdrawl account form neither transfer my PF, If past employer will agree to transfer my account...
    So please tell me what to do ... Atleast i want to withdraw my balance from old account....................
    I have also heard that I old employer does not want to sign on withdrawl form then employee can verify the form by Bank Manager , along with ID proofs.......

    please tell me what to do ..

    you can also email me at : karan36768@gmail.com


    Thanks

    KARAN VERMA

    ReplyDelete
    Replies
    1. Hi Karan,
      Your new employer cannot say this company code things because it is standard practice that epf accounts get transferred when a new employee joins the company and they cannot deny the epf account transfer. Anyways, now that you have a new account you need to close your old account and withdraw the money.

      Your old employer cant say that they will not sign the withdrawal form. They have to. In case they dont, there are still options. They are covered in the "What happens if my past employer is Unavailable? " section of this article: http://anandvijayakumar.blogspot.com/2012/10/can-i-transfer-my-pf-account-to-my-new.html

      You can read that article by Clicking Here

      Best of luck

      Anand

      Delete
  16. Hello Anand,

    My first PF contribution in started in Jun 2005 and i switched 3 companies as of now. I never withdrawn my PF amount and i got transferred all the PF amounts from my previous companies to current PF account.

    When i applied for Loan for purchase of Flat, my PF office informed that the date of joining the PF trust is shown as Sep 2009, which is my dOj of 3rd company, and as i have not completed 5 yrs, they rejected the application.

    But actually, i completed 7 yrs of PF subscription. Please let me know how can i correct the same.

    Also let me know once the loan is approved, whether the amount can directly be transferred to my account or the builders account.

    ReplyDelete
    Replies
    1. Deepak,

      Firstly you can talk to your current employer and check if he would be able to help you in correcting this because you got your PF transferred. If he is unable to help, visit your nearest regional EPF office and submit a complaint with proof that the same person who held the PF Accounts (YOU) got it transferred each time. They may take some time to act on your complaint and once you submit all proof - the date of opening will get changed.

      The payment will be released as a cheque in favor of the builder only. The account holder cannot get a cheque on his/her name.

      Anand

      Delete
  17. Dear Anand,

    I have a pf account in delhi and a long tenure with the company in delhi 17years. Now I have join the other company. Now My emplyer has register wrong date of birth in the EPFO. Please advice what to do. Not getting +ive ans from anywhere. SHould i go for withdraw of my pf. I wanted to transfer that amount but because of date of birth I am not willing to go for this. Does date of birth play an important role in PF and is there any problem will occur when i would be looking for withdraw of pf later on.
    Jsingh

    ReplyDelete
    Replies
    1. Hi Joginder,
      I concur with your concern and given how our government departments cause delays even for small things, I too think that withdrawing the PF would be the best decision given the date of birth confusion.

      Remember - the PF is for your retirement, so make sure you save up the money you get as a result of the withdrawal for your retirement.

      Best wishes
      Anand

      Delete
  18. Hey,
    What happens when an employee is sent abroad by an Indian Co. to work in their own organisation there...is he still entitles to gratutiy and provident fund.
    if yes, what is the period for which he can claim it.

    ReplyDelete
    Replies
    1. As long as you are an employee on the payrolls of this indian company, you are entitled to all employment related benefits like gratuity, PF etc.

      For ex: If you were in India for 10 years and in US for 2 years, your total entitlement for gratuity will be 12 years.

      During the time you are abroad, employers will need to remit your PF amount every month irrespective of whether you are employed in India. If they dont, then it is incorrect. You can tell your employer that you are entitled to your share of PF every month no matter where you are employed. remember - your employer will contribute his share of the PF only if you are willing to contribute your share.

      for ex: when I went abroad I received no salary in India. But, my PF contrib (both employee & employer) was made every month and my employer deducted that money in $'s when he paid my salary there.

      Hope this clarifies.

      Anand

      Delete
  19. Hi Anand,

    While submitting the claim docs for withdrawal, should the bank details (account, cancelled cheque leaf etc.,) necessarily be of a nationalized bank or an ICICI Bank would also be acceptable?

    Pramod

    ReplyDelete
    Replies
    1. Pramod - There is no such restriction to just use nationalized banks. You can use any bank at which you have been having an account.

      Anand

      Delete
  20. HI Anand,
    I need few info regarrding withdrawal of EPF for the payment of home loan. I am working on the same company from last 9 years. before i worked for a company for 2 years but withdrawn the PF amount while i was leaving.

    Now can i withdraw the PF amount for paying the home loan. I see, for withdrawal again home loan, need 10 years of service.
    does that mean i first 2 years wont be countable since i have closed the PF account that time for first 2 years.

    Please suggest.

    ReplyDelete
    Replies
    1. Unknown,
      Yes, since you close that PF account before you joined this new job, the total years will only be 9. You need to wait till your current PF Account is 10 years old and then only you can submit a withdrawal request.

      Note: If you had transferred that PF account when you switched jobs, by now you would be eligible for the home loan withdrawal scenario.

      Anand

      Delete
  21. Dear Sir,

    I am working with a company from last two years, and from last three months PF is deducted from my salary. Can i withdraw it? If not now then can I withdraw it after 6 months? Please advice..

    ReplyDelete
    Replies
    1. You can only withdraw your PF if you resign from your job - with the experience you have. See the detailed table and requirements in the article to see for what reason, how much old your PF account needs to be in order to withdraw.

      Anand

      Delete
  22. Hi Anand,

    I worked in companies A , B and C and then joined D. I kept on transferring money to my newer companies and now all the money is with company D's PF account. I have been working with D for 5 years now (with my overall experience crossing 10 years).

    I now want to leave this job and don't intend to work again (opting for business). Is it possible for me to take out the entire PF amount without attracting the tax?

    Regards,
    Gaurav

    ReplyDelete
    Replies
    1. Yes you can Gaurav. Since you transferred the PF every time, the PF accounts' total age is close to 10 years as you said and that means that your withdrawal is fully tax free.

      Anand

      Delete
  23. Hello sir,
    I have been working in an organization for the last 20 years.I would like to withdraw some amount from my PF account for purchasing a flat which is under construction.l would like to know whether the money will be directly credited to my bank account or will be given to the builder.It is found in the instructions that the amount will given to the PF member if purchased from the promoter and if purchased from an agency payment will be given directly to the seller.So please clarify as you wrote in many blog the payment will be given only to the seller.
    Thanks

    ReplyDelete
    Replies
    1. Anonymous,
      The payment will go directly to the seller/builder from whom you are purchasing the flat.

      Anand

      Delete
  24. Hi Sir,
    I have been working in an organization for the last 3 years. For the past 15 months company deducted money from my salary for pf. From June on wards they stopped the deduction.When i asked they told that your pf deduction is closed.so money wont deduct from your salary. so I asked to withdraw that money. Company told me to wait for 3 months then only they can file my withdrawal form. I have some doubts please help me.
    1.Can i withdraw my money from pf because am not paying money to that account last 3 months?
    2.When can i submit the request for pf withdrawal?
    3.What is the format of Request?

    ReplyDelete
    Replies
    1. Anonymous,
      See answers below.

      1. The standard withdrawal happens only after you are unemployed for at least 60 days. In this case if you are still employed, I am wondering why your employer stopped PF contributions.

      2. PF withdrawal request can be submitted 60 days after your last working day with your organization through which monthly EPF contributions were sent.

      3. There are forms that you need to fill up and submit. Read the article fully - A section gives you links to the forms that you need to download and full up.

      Anand

      Delete
  25. Hi Anand,

    Very interesting blog and useful too. But I have a query, I'm eligible to withdraw my EPF for purchasing of an apartment. I have already paid 20% of the total money to the builder and for the remaining 80% I would be taking a home loan. With this backdrop i approached my HR to find out about withdrawal of EPF, bcos i have an agreement with the builder signed for registration in my name. But my HR reverted saying the EPF amount will only be sent to the builder's account and will not be credited into my account. Since i was in need of cash, I had borrowed some amount from my cousin to pay that initial 20% which is what I'm trying to cover through EPF. Is it not possible to have the EPF withdrawal amount credited to my personal account? Can it only be sent to the builder?

    ReplyDelete
    Replies
    1. Hi Suganya - Yes, your HR is correct. The payment will only be made to the builder to avoid malpractice. What if I am not even building a house and use this withdrawal option to just get money out of my account?

      You might be legitimately building a house and using the money for that purpose but not everyone would do the same - right? :)

      Anand

      Delete
  26. Thank you Anand, but just out of curiosity, in case a person is constructing a house in a plot owned by their parent, how would they allow withdrawal of EPF? What documents would be required to do so?

    ReplyDelete
    Replies
    1. Hi Suganya, the list of documents is pretty standard. Even if you are constructing a house in a plot owned by your parents, there will be someone doing the actual building isnt it? The cheque will be sent to them. As for documents you will need a quotation from the builder, the proof that you are actually building a house that will be registered in your name.

      You can get the full list of requirements (Documents wise) from your employer along with the withdrawal request form.

      Anand

      Delete
  27. Dear Anand,

    I have a query that what ever be reason for pf withdrawal. do we have to repay the amount?

    For ex- i am planning to take withdrawal for home construction then i will get 36 times of my salary

    if my salary is 20,000 will i get 7,20000 rs

    or the basic salary 6500 ---> 2.34000 rs

    and do i have to repay the amount?

    ReplyDelete
    Replies
    1. Hi Ash,
      For a withdrawal - you need not repay. The multiple is based on your basic salary only. Also, if your PF Account does not have enough money to accommodate 36 times your basic pay, you will get whatever is present in the account.

      Anand

      Delete
  28. Dear Anand,

    Thanks a lot of providing such useful info above. One thing need to ask in case company shuts down then
    a) how employees can withdraw or benefit their EPF
    b) Or is there any other issue arises in that case?

    ReplyDelete
    Replies
    1. Mohit - As long as the PF Account is maintained with the government owned EPF Organization, you have nothing to worry. You can just produce your PF Account information and withdraw or transfer the funds to your new employer by visiting the regional pf office and providing proof that you had a PF account and that your employer is closed.

      If the company maintains a private PF trust (which many large corporates do) in that case, if the company shuts down, the government will intervene to help recover the money that the company owes to its employees. There will be delays but eventually you will get the money. Dont worry, small organizations which havent been around for at least 10 or 15 years will never get this option. Only multi-million-dollar profit making companies can even try to obtain this private PF thing.


      Anand

      Delete
  29. hi anand
    just want to know if i can withdraw My PF for my Wife Pregnancy ?
    Thanks in adance
    Vineet Thakur

    ReplyDelete
    Replies
    1. Vineet - You can try. Technically Pregnancy and delivery can be considered as a medical treatment but an argument against the same can be made too. This is a new scenario and I believe trying it out would be the best option.

      Once done, please make sure to come back and let us know if it worked. That could help the other readers of this blog too.

      Thanks
      Anand

      Delete
  30. Hi Anand,

    can i withdraw pf amount while working on the organisation?

    i am looking to withdrawl it for my mother's operation,

    what are the documents's do i need to submit to the firm.


    regards,

    SAntosh

    ReplyDelete
    Replies
    1. Santosh - Yes, you can withdraw while working for mothers medical treatment. You need a letter from the hospital suggesting the need for your moms surgery with details on the why, how and the how much money parts.

      Anand

      Delete
    2. Hi Anand,

      Appreciate your quick response, Documents can be a medical certificate stating that a surgery or an operation needs to be done.

      Also i need to mention the amount as well with the request.

      please shed some light on it.


      thanks,
      Santosh

      Delete
    3. You are welcome Santosh. Yes, a medical certificate should be enough. And yes, you need to specify the amount. However, remember that the amount you get will be either 6 times your monthly basic salary or your total corpus (whichever is lower).

      Anand

      Delete
  31. Hi Anand,

    I am Jayesh from Mumbai, EX employee of big manufacturing group frm mumbai. I left that organisation in 2011. I worked there for four years. During my service company was deducting my PF, which is operated by companies trustee not by Govt. Authority. During my work period I signed 2 contracts i.e. 1 yr for software and 3 yrs contract for onsite deputation out of india. But I had left that organisation before valid contract period. Is it possible to get my PF money from that company.
    thanks
    Jayesh

    ReplyDelete
    Replies
    1. Hi Jayesh - In case of company managed PF accounts also, they have to honor withdrawal requests from employees but in your case, since you left hem without honoring your contract they might delay and hinder the withdrawal process. First try to reach out to them and mediate a compromise and then they will help you.

      Anand

      Delete
  32. Hi

    I am working in a company for the past 12 years and now I want to take amount from my PF and repay my housing loan. I have got a statement from my bank giving details about the balance amount needed for pre-closure. The house is registered in my name. Please let me know what other documents do I need to submit along with the bank statement.

    Thanks
    Karthik

    ReplyDelete
    Replies
    1. Karthik - Yes, you will be able to withdraw money to repay the loan. You will need to submit proof that you are repaying a loan and that the house is in your name. Check out the form which needs to be filled for submission and it has all the details. See: http://www.epfindia.gov.in/Forms/Forms_Instructions/Form31.pdf

      Anand

      Delete
  33. Hi,

    I had applied to withdraw some money from my PF account on medical terms, but it got rejected as this sickness (diabetes) is not covered under this scheme. Please advise what all disease are covered to avail my money. Please mail Shakthip@hotmail.com

    Regards.
    Sap.

    ReplyDelete
    Replies
    1. Hi Sap - Diabetes is not considered a critical illness. Withdrawal from PF account is only allowed for treatment of critical illnesses.

      See the EPF tamilnadu website - http://www.epfochennai.tn.nic.in/advances_withdrawls.html

      They have clearly explained what classifies as critical illness. All other state regional PF offices follow similar guidelines only

      Anand

      Delete
  34. hi anand,

    recently i applied for pf withdrawal in the company for acquisition of site/plot. all the dcouments are clear including EC. The company people are giving me trouble saying that the land you are purchasing should only be of residential type else you cant withdraw the PF.

    ReplyDelete
    Replies
    1. Hi Nadeem - your company is absolutely right. The withdrawal is only allowed if the plot is residential. You cannot use your PF to purchase commercial property.

      Anand

      Delete
    2. Hello

      I had worked in India for about 10 years and recently left Delhi due to get PR in other developed country. My question is, can someone in India withdraw by provident fund if i authorize him/her. Because i am away from India now. If possible, what are the criteria?

      Delete
    3. Hi Anonymous,
      No, you cannot authorize someone else to withdraw the PF money on your behalf. You can submit the withdrawal request the next time you come to India. You need to do that in person.

      Anand

      Delete
  35. I have finished 7 years of service in a company. I want to withdraw my PF to make part payment for my home loan. Is it possible to do so?

    ReplyDelete
    Replies
    1. No. You need to finish 10 years of service to be eligible for that

      Delete
  36. Hi,

    I have been working with my current employer for the last 5years+. am planning to withdraw my pf balance in advance for purchasing a flat.

    As per my ONLINE PF statement i have a balance of 81705 (EE share) + 47870 (ER share)

    1. Am i eligible for advance withdrawal for purchasing a flat??

    2. For me the 36times wages comes around 3.6lakh. but my pf balance is 1,29,575rs (EE + ER share). wat is the max. amount that i can withdraw??

    3. My EPF account is in chennai. Do u have any idea about the application processing time??

    4. Please Note : from 2008 to 2009 i have worked with same company with different PF account no. later account no. got changed by employer. And the balance amount in my earlier account got transfered to the new account. I believe this wont be a problem during my application process.

    Your valuable suggestion/response is needed.

    Thanks

    ReplyDelete
    Replies
    1. Hi Manikandan see answers Questionwise

      1. Yes, you will be eligible since you have completed 5 years of service
      2. If the PF Balance is lesser than the 36 times, you will get PF balance. (the 36 times is on your basic salary and not total salary)
      3. Across India the processing time is around 3 to 4 weeks.
      4. As long as the account was maintained continuously/transferred properly - your total cumulative experience will be the age of the PF account.

      Anand

      Delete
    2. Thanks Anand for your immediate response. Do you mean that maximum it will take 4wks to get the amount??

      Delete
    3. Hi Mani - There is no such thing as a Maximum time in governmental departments in our country as of now. The average time is usually around 4 weeks and if all your documents are properly submitted you may get it earlier as well.

      Delete
  37. Hi,

    Thanks for all the information on EPF. You are like a master on this subject :)

    I have total 8 years of EPF contribution. Now if I move to business or relocate out of India do I continue getting interest on the EPF or will it get dormant and no interest will be paid ?

    Alternately can I withdraw it as I will employed in a job anymore or will be moving out of India without getting taxed on it ?

    Thanks.

    ReplyDelete
    Replies
    1. If you withdraw now, there will be no tax because you have kept the account for 8 years.

      Delete
  38. Hi Anand,

    I have a query. I have been working in a private company since the last 5 yrs & my contribution towards EPF started since Oct 2009. Now I am in great need of some money to repay my personal loan taken from HDFC bank. I just wanna know that m i eligible to take loan from my EPF. If yes, then on what basis or background should I apply. Pls suggest.

    With Thanks,
    Subhadeep

    ReplyDelete
    Replies
    1. Hi Subhadeep - Unfortunately you cannot withdraw from your EPF to close personal loans.

      Delete
  39. Hi Anand,
    My wife has resigned her job for maternity reasons in March '13 and is not planning to work in the near future. She had been with the company for 3+ years. From your blog, and the posts - I understand about the taxability part, and that she is eligible to legally withdraw her EPF. My question is as what she should mention in the "Reasons for leaving service" part in Form-19. Is there a standard set of reasons we should pick from, or can we write something like "Resigned for Maternity reasons, not pursuing a job any more"... or can you suggest anything relevent and better. Appreciate your help, and thanks in advance :)

    ReplyDelete
    Replies
    1. There is no such standard set of reasons you need to pick. You can write up the actual reason and submit the form. That should be fine.

      Delete
  40. Very informative article and greatly appreicate it.
    I checked my EPF balance under http://epfoservices.in/epfo/member_balance/member_balance_office_select.php and value shown has two parts. One says EE amount and other is ER amount?
    Can you tell me what is the difference b/w two? Should we consider total of them as the balance available?

    I have another question - message says that EPF balance amount as on 27-11-13 (accounts updated up to 31-03-2013). Does it mean that balance amount is up to date amount or its that of 31-03-2013?

    Thanks in advance for the response

    ReplyDelete
    Replies
    1. Anonymous - EE refers to employee contribution and ER refers to employer contribution. See this article where i have explained what each means - http://anandvijayakumar.blogspot.sg/2013/03/employee-provident-fund-demystified.html

      Click Here to read it.

      The balance in the EPF Website is not up to date. IT means the balance is correct as of 31st MArch 2013

      Delete
  41. Thanks for the information Anand. Please help with the below mentioned query.

    I have been associated with my current employer from past 9 years. I had purchased a property few years ago (during my current employment). The said property was purchased by availing a home loan. I am constructing on the said land. For further construction related work i wish to withdraw from my EPF account. From the blog I can figure out that the same is permissible. However i wish to know the documents that may be asked for withdrawal for construction related purpose. My original title deeds and agreement are already with the bank.

    1. In such a scenario what documents are required to avail premature withdrawal of EPF amount.
    2. Can xerox copies of the title deeds be submitted?
    2. Can I avail partial withdrawal for construction related work?

    Thanks..

    ReplyDelete
    Replies
    1. Anonymous - see answers below:

      1. documents like proposed plan, amount to be incurred (construction cost estimate from the builder) etc
      2. Yes, but i think originals will have to be produced as proof
      3. There is an upper limit on the amount. You can withdraw up to that amount. Since this is a once in a lifetime type of loan, if you withdraw a partial amount, you cannot withdraw again.

      Anand

      Delete
  42. Dear Anand,

    Thanks for all the information at single place. Really appreciate it, however I'm still not able to find answer to my query. I'm really hopeful about finding an answer here.

    I had EPF account with my previous employer (for 4 years), however, I then switched to a start-up 2 year ago. My current company didn't have any EPF account and it doesn't seem that they are going to have it for another 1 year at least. Am I allowed to withdraw my EPF amount even though I'm employed technically but doesn't have any option to contribute to EPF. I don't want to wait for another year and getting my EPF account become inactive.

    Thanks in advance.

    ReplyDelete
    Replies
    1. Anonymous - Yes, you can withdraw the money from your old pf account if the new company does not offer PF benefits. But, note that your withdrawal will be taxable because your account was active for only 4 years

      Delete
  43. Hi Anand,

    I was working with a company "A" from Feb,2008 to Nov,2010. I resigned and joined company 'B' from Dec,2010 to June,2013. I have not transferred my PF account from company A to B. Not withdrawn my PF amount from Both the companies. Is there any possibility to withdraw my PF amount now?

    Thanks in advance.

    ReplyDelete
    Replies
    1. Anonymous - If you are not employed right now - YES you can get the money. You need to separately submit withdrawal requests for the PF Accounts maintained by company A and B and get the money. Note that in both cases the amount will be taxable because individually your account was held for less than 5 years

      Alternately - you can try to transfer the PF From company A to company B and then submit a withdrawal from the consolidated account which will help reduce the tax liability because the account would have completed 5 years and so, tax free. But, the problem here is - company B has no obligation to help you transfer the money from company A because you no longer work for them.

      Alternately - If you are going to join a new company or already are working in a new company - Say Company C, you can get the money from both accounts transferred into it

      Delete
  44. Hi Anand,

    You seem to be a PF guru. :)

    Please guide me.

    I am working in this present company from Feb 2011. Now, I resigned and my last day here is Dec 12th 2013.
    I am moving out of India by Dec end to accompany my husband. I am not going to work in US however.

    How can I withdraw my PF as I will be out of India 3 months after resignation? Is there any special procedure for people moving out of India?

    Your suggestion in this regards is highly appreciated.

    Your responses in this blog are really really helpful. You are a star!!! :)

    Thank you in advance,

    Pranathi

    ReplyDelete
    Replies
    1. Hi Pranathi - Yes, you can withdraw the money. When you leave the company ask them to fill up the withdrawal form and submit the forms on your behalf. The PF money these days comes directly to your bank account. So, for that, you need not be in India. The money will automatically come int your bank account. So, as long as you keep your account open, you should be fine.

      There is no such separate procedure for people leaving the country. The process is the same for everyone - Direct deposit into your bank

      Anand

      Delete
  45. Hi anand,

    I have taken the "house construction loan" from EPF 10 year back. Know Can i take the "repayment of housing loan" ?? on the same property. ( Since i have taken loan from SBI bank on the same property and still i am paying the EMI. To reduce my EMI and clear the loan in the bank ).

    Could i know, what all document i need to submit for the same to EPF office.

    ReplyDelete
    Replies
    1. Nagesh - No. I dont think so. For one property I dont think you will be allowed to take two loans from EPF. You can try though to see if it works.

      You will need to submit documents that show that you own the house and the fact that you are repaying a loan to some bank via the EMI route.

      Delete
  46. Hi
    I want to take pf advance to purchase land from an individual. My company finance advisor is saying that the cheque can be drown in the name of seller person only.As the seller is a private individual is it possible to get the cheque in my name.My pf circle is bangalore.

    ReplyDelete
    Replies
    1. No. the cheque will only be issued in the name of the person who is selling the property to you.

      Delete
  47. Thanks for the quick response.. normally how much time to approve my request? I need to register the land within 1 month of time.and what should I do if the cheque is not received within this time?Should I give my post dated cheque for registration and collect the cheque back when the pf cheque is received.
    Thanks in advance

    ReplyDelete
    Replies
    1. The usual processing time is around 4 weeks. Yes you can, as long as the guy from who you are buying is willing to agree :)

      Delete
  48. Hi Anand,

    I am with this company from last 2 years and now resigning as I am moving out of India and joining a different company abroad.

    I want to withdraw my PF and VPF. Is it taxable? Is there any excpetion for people moving out of India?

    Thanks in Advance

    ReplyDelete
    Replies
    1. Hi - Yes, the withdrawal will be taxable because you have not completed 5 years.

      And, No - there is no exception to this taxation rule.

      Delete
  49. Dear sir i had worked in one company from 23.01.2012 to 11.04.2013 and i have reigned from that company on 11.04.2013 and send form 19 and form 10c to draw my pf money from company but company not sent my form to pf office ,company hr department person telling if you say company can send after filling the form to my home . what i can do please tell me

    ramanand singh
    mob 9993527977

    ReplyDelete
    Replies
    1. Ramanand - Usually the company sends these forms to the PF office directly. If they are refusing to do so, you can collect the forms and submit the yourself. Either ways, if the form is signed by your employer and attested, you can submit it yourself.

      Delete
  50. HI Anand,

    I have worked in x company for 3 years and continue work for another company y for 2 years 10 months i have transferred PF from x to y.

    I asked pf report to my last employer(y) but it doesn't show transfer of x.

    Now i want to withdraw all PF amount as per your blog it should not be taxable as i worked more than 5 years of service.

    could you please confirm the same.

    ReplyDelete
    Replies
    1. Unknown - Yes, if your PF Accounts total life is more than 5 continuous years, the withdrawal will not be taxable. Note that you cannot withdraw if you are going to join another company after resigning from company Y.

      Delete
  51. Hi Anand,

    Thanks for having such a wonderful knowledge base on PFs. I have below doubt, Could you please help me to clarify it?

    I have worked in a company for 4.3 years and moved to another company where i have worked for 2 years. And i have successfully transferred my PF from initial company to current. So I have total 6.3 years of experience. The 7 years of service is really required for the PF withdraw with reason as marriage?
    I had this doubt because i could see some of the comments where people have withdrawn with less than 7 years of experience.

    ReplyDelete
    Replies
    1. Anonymous - You need to complete 7 years of service to do withdrawal for wedding. You may have mistaken people who withdrew funds for other purposes that need only 5 years of service.

      Delete
  52. Hii Anand,

    I have query.
    I left a company named HS in June 2009 (work tenure - 2.6 yes) & joined another company named AH where I worked for around 4 yrs.

    Now I have recently left the AH company in june due to maternity .

    I want to withdraw my PF amount from the HS & AH company.
    I checked the PF link and it says account is locked and contact EPF office for HS company.

    What problems will I face for withdrawing as its been more than 5 yrs and I have not transfered nor withdrawn the PF amount from the HS comp.
    I know I have to withdraw PF from AH employer as well.

    Please guide.

    Regards
    Priya

    ReplyDelete
    Replies
    1. Hi Priya,
      Since you did not get your PF Acc transferred when you moved from HS to AH, technically speaking withdrawal from both accounts will be fully taxable because individually neither account completed 5 years of service. As you are on Maternity, you can withdraw the corpus from both accounts now. All you need to do is, fill up the withdrawal form, get it signed and attested by your employers and submit it for withdrawal.

      If you want to avoid the taxation problem, you need to first transfer the PF from HS to AH and then submit a withdrawal from AH once the transfer is complete.

      Yes, an account left inactive for 4 years will have issues while trying to access and you need to contact the EPF Office where your PF Account was maintained by HS to fix the problem.

      Anand

      Delete
  53. Hi anand,

    Great to find this blog online.
    You are doing a fine and appreciable job by assisting and educating we "novices".

    I have queries related to my PF Account.
    I have been working in my current organisation from past 8.5 years and resigned couple of days back as i am opting for higher studies.
    (one year from 2014-15)
    My last working day is 22nd march (relieving date).
    I have 2 options. (1). to withdraw (2).Not to withdraw.

    1.If i want to withdraw my PF Money, can i opt for 100 % withdrawal ?...or only 50% will be provided to me due to education as reason ?

    2.If only 50 % is disbursed, then will the money be directly provided to the Institute ..? or will it be given by cheque to me ?

    3.If i do not opt for withdrawal..and let the amount be transferred to the new organisation that i will be working post my education (in 2015).
    How much hassle free is it..to transfer the PF to new organisation...?..Do i have to physically visit my current company later..?

    4.And if i do not with draw my PF..what will happen to the account in 2014..as i am not with the company, will the money earn any interest for that one year of my studies ?

    Sorry for the number of questions..

    Solicit your kind support.

    Regards
    Ravi

    ReplyDelete
    Replies
    1. Ravi - See answers below:
      1. Since you are resigning from the job and taking up further studies, you can withdraw 100% of the EPF corpus
      2. In your case, withdrawal for education is not applicable because you should still b working & contributing to EPF to use that facility.
      3. Transfer to a new company always has slight hassles but it is possible. Not an issue. Yes, you will need to get in touch with your old employer to get the transfer initiated
      4. Yes, the money will earn interest for 1 year. The account will remain dormant until a transfer or withdrawal request is submitted.

      Anand

      Delete
    2. Hi Anand

      wishing you very happy new year.. Thanks for this useful blog. I am seema dave working with an NGO. I am working here since four and half year. I am going for sabbatical leave of four years for perusing PhD to abroad. So will not be paid salary during this leaves.

      I have a related to my PF Account.

      In case I want to withdraw my PF Money, can i get 100 % withdrawal?...or only 50% will be provided to me due to education as reason?

      and what will happen to my PF account during this four years in case i cant withdraw money?


      Please attend my quarry and clear it

      Thanks and regards

      Seema

      Delete
    3. Hi - While going on sabbatical, since you are technically under employment, you cannot close your pf account or withdraw money from it. Just because you are going on sabbatical for further studies does not mean that your pf will be automatically withdrawn. If you are eligible for withdrawal for education, you must have completed 7 years and since you havent done so, you cannot withdraw.

      Anand

      Delete
    4. Thank you Anand for prompt reply

      Delete
  54. Hi Anand,

    Wish you a happy New year

    Please guide me here I am not sure how do I resolve My PF issue

    I had joined a company A in the year Sep 2007 and I had a PF account (KN), in the year 2011 Aug Company A was taken over by Company B and the same PF account (KN) was continued till Jan 2013. As my project got changed , I had to do a intercompany transfer (within the same company (Company B)) where My PF account (KN) got changed which was managed in the different state (TN) when I applied to the PF transfer from KN to TN the said it would take a year and after 10 months they say it cannot be transferred. Meanwhile again my project got ramp down and got another project in the month of Sep 2013 and had to undergo the intercompany transfer (within the same company (Company B)) then again I got a new PF account as (KN)

    Now I have three PF accounts ( 2 KN and 1 TN) the New one is KN account. I want to transfer the amount which is in my old KN account to new KN account. When I applied it online for the transfer I found the data uploaded in the EPF portal was wrong it shows my reliving date as Jan 2010.

    1. What is the process to get the data on the EPF portal corrected so that I can proceed with the transfer?
    2. When I have 3 PF ( 2 KN and 1 TN) account in the same organization (company B) and when I leave this company can I withdraw all three PF amounts?


    Please advise me on this regard.

    Thanks,
    Sachin

    ReplyDelete
    Replies
    1. Sachin - There is not much clarity yet about data in the EPF Portal. If you visit the nearest EPF Office to update your particulars registered with them, it should automatically reflect in the EPF Portal

      When you switched companies, what happened to the transfer requests? Were they all rejected? Now, you can get the 2 old PF Accounts into the current PF Account if you initiate 2 separate transfer requests.

      When you leave this job 3 - they will only help withdraw funds from the 3rd pf account. Yes, you can get the money from the prev two accounts as well but you need to reach out to company's A and B to get the pf money in those accounts.

      Delete
  55. Hi Anand,

    I want to know that once I withdraw PF for construction of house I can not withdraw for second time for this reason , But If I want to withdraw for any other reason except construction of house after first withdrawal, then can I withdraw?

    ReplyDelete
    Replies
    1. Yes. You cannot withdraw once more for the same reason (house construction) but you can withdraw for other reasons.

      Delete
  56. HI Anand,
    I worked for an organization in INDIA for almost 8 years and now I moved to US on same organization but I resigned in INDIA and joined as LLC in US. When I checked with my finance department regarding my PF they are saying that I cannot withdraw my PF and if I tried to do that I need to pay 30.90% taxes on whole amount. Guide me on this.

    Thanks

    ReplyDelete
    Replies
    1. Charan - Withdrawal from PF is only taxable if you do so before completing 5 full years. Your finance department may be wrong with the no. of years of service you have. Check again with them.

      What do you mean by LLC? When you more to US for the same company, it does not qualify as resignation. Maybe that is why your finance department said you cannot withdraw your PF. If you are not an employee of that company any more and will be joining a totally new company in US, then yes you can withdraw.

      Delete
  57. Dear sir

    I had worked in office for six years and now i am settled in my business . i need to withdraw my pf amount but my previous is not helping me . Hw can i get the PF amount kindly help me..

    Thanks and regards
    D.Deva

    ReplyDelete
    Replies
    1. Deva - Any company is expected to help out their employees withdraw or transfer their PF amounts when they leave the organization.Do you have the PF Account number and details?

      Try talking to your old employer again about helping in the withdrawal process and if they refuse tell them that getting your PF is your right and you are willing to complain against them in the regional pf office and even consider a legal case with the help of a lawyer who specializes in labor laws. That should motivate them to help you. If they dont, you can visit the pf office to check if you can withdraw without your employers help and file a formal complaint with them.

      You can also consult a lawyer specializing in labor laws for advise.

      Anand

      Delete
  58. Hello sir,
    I want to ask that if I havnt told my current employer about my previous employment, Can they know about that via my PAN card details which I have given to them???Please reply its important.

    ReplyDelete
  59. 10 years back I worked for a company for about one and half years and i am not sure if employer will sign my EPF withdrawal form.please advice how can i withdraw my EPF?

    ReplyDelete
    Replies
    1. Kumar - Do you have the PF Account number? Do you have proof that you had a PF Account and contributed PF for the 1.5 years that you are talking about? IF so - you can try visiting the regional PF office where you had that account and try.

      If not, contacting your employer is your only option.

      Anand

      Delete
  60. Hi Anand,
    First let me compliment you for the wonderful job that you have been doing.This is one of the world's finest blogs that I have come across. Who would know better than you that starting a blog is easy – sustaining and then nourishing it over such a long period is simply incredible!! Take a bow - Master-you are the best.
    My query is that I had left a company D in November 2009-after working for over 4 years. Somehow I could never got around to withdrawing(or transferring) my PF a/c. Now I want to withdraw - and I have already filed a claim -but the status of the claim says this account is in-operative.
    How do I go about getting the PF amount withdrawn?
    Would it be easier/better to transfer the a/c to a newer PF account with company "I" ?
    The problem is that I have left company "I" about a year ago--at present I do not have any active PF a/c.
    What should I do as now I need the money to set up my office as a freelance instructional designer ?

    ReplyDelete
    Replies
    1. Kamal - Thanks for the compliments

      Unfortunately you cannot transfer your PF because even the account you opened with company "I" will be in inactive status by now because you left the job a year back. Any account into which monthly PF contributions arent coming in becomes inactive.

      Anyways - Withdrawal from such accounts is the same as regular accounts. You will need an affidavit to prove that you are indeed who you are and justify why you did not withdraw or transfer your PF money when you left the job. Apart from this you fill up the requisite forms and then submit it to the PF Office

      Reach out to your two old employers and ask them to initiate the withdrawal proceedings. You will need to sign up the forms and once they sign/attest it, it has to be sent to the PF Office for processing.

      As you are not working in any company now, you can withdraw both PF Accounts. Remember that the withdrawal will be taxable because neither PF Account has completed 5 years of service.

      Anand

      Delete
  61. hi! I am v ramesh. I work in a company and the company has a pf trust of its own. I have already withdrawn pf once in the year 1999. also I have withdrawn for repairs in the year 2006. I had applied for withdrawal again and I was told that I cannot withdraw again for purchase of property as I have already withdrawn once. This condition is nowhere mentioned in our pf rules book. 2. I have taken one more house by taking housing loan from a hfc. can I withdraw now for repayment of this loan. kindly give your views. thanks. v.ramesh.

    ReplyDelete
    Replies
    1. Mr. Ramesh - Withdrawal for repaying a home loan and repairs is totally different and you can do it one time each. Is this loan taken for repairs of your property for which you took money from PF? If so, it may not be possible.

      Delete
    2. firstly this is a pvt. company trust and not govt epf. 1. I had withdrawn pf once for purchase of house in 1999. I had withdrawn again in 2006 for repairs for the same property. now I intend to withdraw pf once more for purchase of another house. is it permissible as our company pf rule doesn't say that I can withdraw only once. question 2. I have one more house for which I have a housing loan from a hfc. can I make withdrawal towards repayment of this home loan.
      thanks.

      Delete
    3. Ramesh - Private trusts and government trusts work the same way. As you have already withdrawn once for purchase of a house, you cannot withdraw again even if buying another house. Yes your company is right and that is the standard EPF rule.

      As you have already withdrawn funds for buying a house, I dont think you can withdraw again for repaying a housing loan. But, you can check with your employer.

      Anand

      Delete
    4. Thanks for helpful replies.

      v ramesh

      Delete
  62. Hi Anand,

    I had submitted my duly filled closure forms to PF office with my previous employer and I got a message from PF office stating that the receipt (2 messages one for form 19 & one for form 10c) of PF form also they are in progress. Just a week before I got credited with my bank account with less amount. (seems only form 19 alone) because I could remember the payment would credit separately for form 19 & 10C.

    Should I have to wait for some more time to get credit for the form 10C or what is the process to get a remaining amount.

    Appreciate your valuable help.

    Thanks. Mani

    ReplyDelete
    Replies
    1. Hi Mani - Yes, please wait. The credit of the withdrawals of EPF and EPS usually get credited within a couple of weeks of each other.

      Delete
  63. Hi,
    i work for an it firm and i have been in it for 2 years. My question is can i withdraw my epf money for my education loan payment?

    ReplyDelete
  64. Thanks Kumar for the wonderful info, its very much detailed and useful. Wanted to know whether you will be able to answer below questions of mine.
    I am planning to buy a plot and want to avail the EPF for funding part of it.

    Q1: I understand that one must be in current company for 5 years. Does it exactly 5 years or 4 years 10 months also should be fine? Suppose if my joining date is 18-Oct-2009, what is the earliest date in current year can I apply for it? Is it 19-Oct-2014 that I can apply or can it be done to prior to this aswell ?

    Q2: How long usually the time taken to process the application and release the cheque?

    Q3: I read that one can get up to 24 times the basic salary. Is this the basic salary shown in pay slip for the last month of drawing salary or ?

    Q4: Does the total amount in PF account includes all the employee share, employer share and interest for this case of partial withdrawal?

    Thanks in Advance

    ReplyDelete
    Replies
    1. Anonymous - See answers below:
      1. It has to be a full 5 years. 4 years 11 months and 25 days too would not count as 5 years.

      2. 4 to 6 weeks

      3. Yes, the last drawn basic salary

      4. Yes - whatever corpus (employee share, employer share and interest) will be available for withdrawal

      Delete
  65. sir,
    my name is suketu bhatt and i m from vadodara.....!

    i applied for pf withdrawal on 7th dec, 2013. i submitted all the required documents to hr department of company. now i got a call from head office of my company regarding bank account which i mentioned for pf withdrawal is a salary bank account and its not valid for pf withdrawal. my query is that salary bank account is not valid for pf withdrawal?
    pls guid me what to do if salary account is valid for pf withdrawal?

    sir pls guide me what to do now?

    thanks.........!

    ReplyDelete
    Replies
    1. Hi - As far as I know, any savings bank account that is in your name can be mentioned as the recipient account. A Salary Account is nothing but a savings account where your salary gets credited. It is no different.

      Ask your company why they are saying so. Maybe the name as per bank records and pf acc records is wrong or some other problem is present.

      Delete
  66. Hi Anand,

    I need help on your below query,

    While filling online PF transfer form, for previous employer section i am getting spelling mistake for my father name and wrong date of leaving previous employer, but while downloading PF Passbook it showing amount till I was present in my previous company.
    So if i submit the PF online transfer form with wrong date which is coming by default and with wrong spelling of my father, Will it affect the PF amount?

    ReplyDelete
    Replies
    1. Hasmukh - When you withdraw the amount that is shown as the latest balance is paid out but, if any account related info is wrong, there is a possibility of your request getting rejected. You can go ahead and submit the request to see what happens. If it is approved, dont worry the amount wont get affected.

      Anand

      Delete
  67. Hi Anand

    now i am starting my own small business, i need to withdraw my pf a/c. but the problem is my last company not cooperate with me & in the time of resign they did not give any release letter, i.e i do not have. i have my all pf a/c details.
    i already read your all blogs.
    you mentioned "What happens if my past employer is Unavailable?"
    in this case - is this options perfect ?
    otherwise can you suggest me anything ??

    thank you.

    ReplyDelete
    Replies
    1. Koustav - You can visit your regional PF office where your PF Acc is maintained along with proof that you have a pf account and request them to help you. They can help you.

      Delete
  68. Hi Anand,

    I am working in my organization since 9 years and would like to withdraw money from my PF account to make the down payment for a flat. But the guidelines(Form 31) say that I need to furnish the agreement with seller. I can only get an agreement after the down payment. So am I not eligible to withdraw money for a down payment? What is the process that I need to follow there?

    Thanks,
    Urmila

    ReplyDelete
    Replies
    1. An Agreement between you and the seller that you are indeed buying a house from them is required for the PF office to know that you are actually buying a house for which you are withdrawing money. Which is what I believe is being asked. You can give a token advance to the seller and request him for this agreement which will state that he will sell the house if you can make the payment.

      Delete
  69. I have few queries related to PF withdrawal. Reply would be highly appreciated.

    • I completed 3.5 years at company A as on August-2013. After that the company A is dissolved due to business reasons. I joined(transferred) to new company-B
    • Is withdrawal of PF is taxable as withdrawal is before 5-years?? Please note that the company A is dissolved AND according to PF clause, withdrawal may not be taxable. If this is so, how PF officials will come to know that the company is dissolved and tax is NOT applicable for this withdrawal?? DO I need to give any documents in this regard??
    • As per PF clause, interest will continue to accrue for another 36 months if I not withdraw now. Please correct me if I am wrong here.
    • If not now, if I wait for another 1.5 years and thereby my PF account is completing 5 years. Can I withdraw PF without any taxes in this case??
    Thanks
    Channa

    ReplyDelete
    Replies
    1. Hi Channa - See answers below:

      1. Yes, withdrawal is taxable if you do so before completing 5 years
      2. Yes, you need to show proof that your company was dissolved/closed and that you did not resign
      3. Yes, Interest will accrue for a period of 3 years
      4. No, even if you wait 1.5 years, the withdrawal will still be taxable. Your account must have been active (monthly contributions going in) for 5 years to be eligible for the tax free withdrawal.

      Delete
  70. Hi,

    I was working with an organization for last 2 years. Pf was deducted from my salary for last 22 month. Now I want to quit the current job and join an another company which does not have epf as the total number of employee is less than 20. What should I do.
    Am I eligible to withdraw the entire amount ?
    If yes then will this be tax free ?
    Can I put money in my epf account by myself to continue the account ?

    ReplyDelete
    Replies
    1. See answers below:
      1. Yes you will be eligible to withdraw the full amount
      2. No, it will not be tax free. You will have to pay tax on the same
      3. No, you cannot put money by yourself in the epf account. It has to be done by your employer.

      The only option you have is to withdraw the money and plan your taxes for the next year efficiently to minimize your tax liability. My new book can help you with that.

      https://www.distribly.com/product/1688

      Best wishes
      Anand

      Delete
  71. Hi Anand,

    I have a tricky situation (i think) with respect to my EPF and hoping you can help.

    I worked in a company in India from July 2007 - Sept 2010. After this I was transferred overseas and was outside the country from Oct 2010-Oct 2011. I returned to India and started working again with another company from Oct 2011- Jan 2014. I have recently been transferred again as of Feb 2014.

    I did not transfer my PF account to the new employer in India when i returned in Oct 2011.

    These are my questions:
    1) Am I allowed to withdraw my accumulated balance in the EPF accounts at both employers?
    2) What reason should i give the EPF authorities/while filling out the withdrawal forms (considering I have now relocated outside india for an indefinite period and i read something about the government making it possible to withdraw EPF only on completing 58 years of age for indians who have relocated outside india, especially to a country where India has not signed a Social Security Arrangement (SSA). Is this true?)
    3) What is the best time to withdraw the PF (if allowed) such that my tax liability is minimum - I will not have any income in India in 2014. Should I wait until the 2013-14 financial year is over so that I receive the money only in FY 2014-15 when i will not have any other income?
    4. What is the TDS deducted on EPF withdrawal (if allowed) for my situation.

    Really hoping you can give some direction here. Thanks.

    ReplyDelete
  72. Amit - I dont fully understand what you mean by Transferred. When you get transferred (As in going onsite for the same company) your pf account remains open. It will only be closed when you resign he job and leave them permanently. Did you go onsite or quit your job in Sep 2010 and go join a diff organization outside India? What about your new job?

    Anyways - Whatever be the case - See below answers:

    1. yes you can - provided you have resigned from your second job and are unemployed right now. If you are still working - you need to get the pf acc from your first job transferred to your current job.
    2. You can withdraw only if you are 58 years of age or if you have resigned and will not be working in India for at least 3 months.
    3. There is no such thig as best time. You have to withdraw if you meet criteria explained in point no. 2 irrespective of whether you have income in that year or not. The more you delay, the more difficult it will be to get the money
    4. Yes, if your withdrawal happens on an Account that has not completed 5 years (both your accounts have not) there is a possibility that TDS will be deducted. IF they do, you need to file a tax return to get a refund if you are eligible.

    ReplyDelete
  73. Hi anand,
    I moved to India in 2005,and purchased a flat from dda in year 2006.
    From 2007 until today, I am working in a pvt organization, and have completed about 7 years, hence I am 7 years account holder of PF.
    Can I withdraw from my PF, against cost for this property purchased in 2005, from my personal savings + bank loan, this property is free hold, however mortgaged with Bank. rgds

    ReplyDelete
    Replies
    1. No Anonymous you cannot because to repay a housing loan you must have completed at least 10 years of service.

      Delete
  74. Hi Mr. Anand,

    My EE Amt is 7996 and ER amount is 2437. i have claim for return. So how will i know the amount which is deposited in my account is my actual claim money.

    Thanking you,
    Nilay Joshi

    ReplyDelete
    Replies
    1. Nilay - Both the EE amount and ER Amount will be returned to you if you withdraw. Note - If you are withdrawing before completing 5 years, the money withdrawn is fully taxable

      Delete
    2. Hi anand my mother has a housing loan repayment amount of 130000 in Karnataka cooperative society,since she is not able to pay it & can I withdraw my pf amount to clear the loan.House is in her name.

      Delete
    3. No Leonard, you cannot. The house has to be registered in the name of the pf account holder if he/she wants to withdraw money from their pf account

      Delete
  75. Hi,
    I am working for a company from last 5.2 years and this is my first company.
    I need some money can i withdraw some part of my pf money?

    Thanks,
    Pankaj

    ReplyDelete
    Replies
    1. Pankaj - PF money cannot be withdrawn per your will and wish. You need to satisfy certain criteria failing which you cannot withdraw. This article lists down all those categories under which you can withdraw some money, the conditions you must satisfy and the amount you can get in the table. Pls refer to it.

      Delete
  76. Hi can I get a loan from pf to clear my mothers housing loan I've worked for 6years

    ReplyDelete
    Replies
    1. No leonard, you cannot take a loan on your pf to clear your mothers loan

      Delete
  77. Hi Anand,

    I have been working in my company for 3.5 years. I recently resigned to pursue my higher studies. I am planning on withdrawing me PF. Since, I will be withdrawing before 5 years, it will get taxed, so I had a couple of questions in order to save this tax amount.

    1. If I leave the account for 1.5 more years and then withdraw the money, will it be considered as 5 years and hence tax-free?
    2. If leaving the account as it is, is not counted as 5 years, can I put in some amount of money in the account for it to remain open for 5 years even though I am not working? Is there a minimum amount?
    3. Is the PF withdrawal amount considered as an income or will it be taxed irrespective of my income of that year. Since, I will be studying I will not have any income for the next financial year. So, say my PF amount is around 2.5 lakhs, if I invest 50,000 as part of 80C, then will this amount be considered less than the min. taxable amount? Or will I have to pay tax on the entire PF amount irrespective of my earnings for that year?
    4. Is the entire amount(ER/EE/interest) that I get on withdrawing my PF taxable? Or is there some component of the amount non-taxable? If so, how do I get to know the breakup of the amount to know how much is the interest.
    5. Is the tax cut at source by the government before it is transferred to my account? Or will I have to file the tax separately?
    6. Is there any other way to avoid the tax on PF amount if it is not possible through points 2 or 3?

    Thanks,
    Swati

    ReplyDelete
    Replies
    1. Swati - See answers below:
      1. No. The account will be considered as 3.5 years only, even if you leave it open for 10 more years
      2. No, you cannot make any additional contributions. The money must be remitted/deposited by your employer.
      3. Yes, if you withdraw before 5 years it will be considered income. Whatever income you have in the year that you get the money, this PF Withdrawal will get added to it and taxed accordingly. So, if you have 0 income during the year you get the PF money, then this will be your only income and if the money is lesser than the minimum taxable salary - you will have no tax
      4. Yes, the entire amount is taxable. No breakup
      5. Yes, these days I heard that TDS is being deducted in some cases. If it gets deducted, you need to file tax returns to get the refund. If no TDS gets deducted, still you will need to file a tax returns to pay whatever tax you are liable to pay.
      6. There is no specific way to avoid tax on PF account. You can transfer it to your new employer and continue on for 5 years total to avoid tax. That is the only option

      Delete
  78. Hi Anand,

    My PF Account was opened in 2010 and in 2011 I moved to US from the same company. MY company stopped contributing to the EPF after they deputed me in US. Six months back I left that company in US and joined another company. Now as there is no contribution to my PF, I want to withdraw it all. Will it be legal to withdraw PF balance by stating "I do not have a job in India"? Please let me know if I need to fill Form 19 for this.

    Thanks,
    Ashish

    ReplyDelete
    Replies
    1. Ashish - Yes you can withdraw but for that you need to reach out to your prev employer and then submit the withdrawal forms along with their signature. You will need to sign the forms as well - so, you need to figure out a way to do that from US (via post most probably). Or you can submit once you visit india for vacation or something.

      Note - You need to provide bank acc details while withdrawing and that account should be a resident indian account and should be open when the money comes. As you are an NRI - that will not be possible because NRIs are not allowed to hold resident indian savings account. Check with EPF Office if they will accept NRO Accounts for transfer of PF Proceeds

      Anand

      Delete
  79. i have taken PF loan of Rs.5 lacs for my sister marriage and i got the money in my account through my employer.now my question is that can i used some part of this money in purchasing home.i m asking this question bcz i have to declare my asset to the company with details from where i have arranged money for home. if i m giving that i arranged some part of money from PF loan that i have taken for my sis marriage then is it ok or not? i m in a PSU company.

    ReplyDelete
  80. No Anonymous - I dont think you can use the money that you did for your sisters wedding to make initial purchase amount for your house. Withdrawing money for one purpose and using it for another purpose could cause problems for you esp since you are in a PSU company.

    ReplyDelete
  81. Hi,

    I am having the service below 5 yrs, i want to withdraw my PF amount, but i dont have reasons to withdraw the money as you mentioned above, but i am migrating from india, and dats y i want to withdraw because i feel i may forget the amount and about the PF account after a period of time.

    My last working day in office is 25th April. How much tax deduction will be there for me if i withdraw(my basic is 9500).What problems i face if i withdraw, and if there is any solution for me without withdrawal, pls suggest.

    ReplyDelete
    Replies
    1. Hi Anonymous - When you are migrating out of India, you can withdraw the amount no problems but you will have to pay tax on it. I have no idea what your total salary is or how much money is present in your PF Account so I cannot accurately comment on your taxes.

      However, this withdrawal will be part of the financial year starting 1st April 2014 and ending 31 March 2015. Assuming you have no other income in India and that you are not going to take up a job here, lets say the salary for 25 days in April is 50,000/- and the PF money you get is 2 lakhs, your total taxable salary for this financial year will be 2.5 lakhs. So, you pay taxes according to the tax slab you fall under (after considering deductions and tax benefits). Thats all.

      Delete
  82. Hi,
    Thanks for providing these many details about EPF.
    I am working in a software company for past 6.4 years. My current basic salary is Rs 65000/-.
    I have purchased a house in my native (home loan + gold loan).
    I would like repay the gold loan.
    Q1) Am I eligible withdrawing PF amount stating renovation of house
    Q2) if yes, how much amount I can withdraw
    Q3) Any idea what all supporting documents needed
    Q4) How long all process(application to amount transfer) will take


    Thanks In Advance

    ReplyDelete
    Replies
    1. Hi SS - See answers below

      Q1 - To be eligible for renovation loan, you will need to perform an actual renovation. You cannot claim to renovate the house and take money to repay gold loan.
      Q2 - You can withdraw up to 12 times your basic salary. Is 65k your basic salary or total salary? If the no. of times multiple is greater than the PF corpus amount, the amount you can withdraw is capped at the amount in ur account
      Q3 - You need a quotation from a builder who is doing the renovation indicating the cost of alteration including breakup etc
      Q4 - 4 to 6 weeks

      Anand

      Delete
  83. hi, thanks for the informative article. I am going to purchase a flat for which i need to do an agreement with the promoter and he will take 20% advance at the time of agreement, so for that 20% amount can i take advance from my EPF account and in that case i dont need to attach the agreement document with form-31. also let me know if the amount from EPF will be issued in my name or promoters name.

    ReplyDelete
    Replies
    1. Gaurav - The cheque will be issued in the promoters name. So, you need to make a token advance and sign the initial agreement and then use that to do the withdrawal. Your PF withdrawal will be limited to 36 times ur monthly basic salary or whatever pf corpus you have in your account. So, if that amount is not enough to cover the 20% you will need to first make that payment to allow the builder to sign the agreement.

      Delete
  84. Hi Anand, I need to withdraw of from my current account for purchase new property. Can you please tell me how much would I can withdraw from account? As per table above it says 36 months of current salary, if I have a salary of 1Lkh per month how much money I will get from PF account?

    Thanks in advance for guidance

    ReplyDelete
    Replies
    1. Atul the 36 times is for your basic salary. if your basic salary is 10,000/- you can withdraw up to 3.6 lakhs provided your pf acc has 3.6 lakhs. If your pf acc has only 2 lakhs, you can withdraw only 2 lakhs.

      Delete
  85. I left my previos job(contributary PF) in 13 months.
    In the same month,I started my current job where I
    will be completing 5years in current job in june,2014.My previous company PF is not so far tranferred to present a/c.
    Can I put my housing withdrawal application and
    tranfer of pf application together,by qouting both pf
    a/c nos.Pl advice

    ReplyDelete
    Replies
    1. Hi Shailen - No, you cannot. You first need to initiate the transfer and wait until the transfer completes and then submit the withdrawal request for it to be successful.

      Delete
    2. Dear Anand,
      Thanks for your advice. Iwill expedite transfer of PF from my old a/c and then apply for withdrawal. I have already purchased apartment from private promoter. I have paid about 30% of amount. Now he is pressing for balance payment and registration. I can hold him till i transfer my old PF a/c and apply for withdrawal. Can I immediately complete the process after application of withdrawal.

      I like to draw to your attention that this is purchase of apartment from private promoter and there is no agency involved (as defined in the EPF Act, 1952). My withdrawal application will be u/s 68B(1)(bb) of the act and I will request payment to me as allowed.

      Pl. advice
      Best Regards
      Shailen Desai

      Delete
    3. The transfer process takes around 4 to 6 weeks Shailen. The cheque that the PF Department releases (After your request is approved) will be issued in the name of the builder who is constructing the property. The cheque will not be given in your name - that is my understanding. This is to ensure that people dont just withdraw the PF money and use it for other purposes instead of buying a house.

      Delete
    4. I am forwarding EPF India Website Link detailing conditions of release of advances againt form 31. I draw ur kind attention to item C and seek ur expert opinion.
      Link-
      http://www.epfindia.com/Forms/Forms_Instructions/Instructions_Form31.PDF

      Delete
    5. Shailen - The link is not opening. Can you copy the contents of that point and paste it here please?

      Delete
  86. Hello Anand, I worked in India at an employer for 1 year 7 months during which I was paying into the Provident fund. I then moved overseas.
    I have been overseas for 6 years after that, never contributed to the PF account after that, and now I have withdrawn my PF. The PF office has not deducted TDS. I would like to know if I need to pay any advance tax on my PF withdrawal for the year in which I have withdrawn, or is the withdrawal tax exempt, mainly because the PF account is more than 6 years old. Also, is it the responsibility of the PF office to deduct TDS, and if no TDS has been withheld, it means no tax is payable? Thanks in advance.

    ReplyDelete
    Replies
    1. Deen - Just because the EPFO did not deduct TDS does not mean you need not pay taxes. Your account was active for less than 2 years which means that the withdrawal is fully taxable. Lets say you got 25,000/- during this withdrawal and this year your annual salary is 5 lakhs, your total taxable income for this year will be 5.25 lakhs.

      This withdrawal must be added to whichever financial year it was paid out to you and tax has to be paid accordingly. The PF Office would've already intimated the Tax Officials that XYZ with name and all your details has withdrawn X amount as PF without completing 5 years. The Tax authorities can easily identify such cases and ask you to pay up the taxes or the fines for tax evasion

      Delete
    2. Thanks for clarifying, Anand. I understand. Will do.

      Delete
  87. Hello Mr. Anand,
    Thanks for the insightful blog. I left my previous organization after 4.5 yrs of service and went for Higher Education. I did not withdraw my PF at that time. Then after 1 year I joined a different organization where I have spent 1 year. My old organization had its own PF trust, current one has a Govt account. My query is:
    1. Can I withdraw the PF from old organization without tax deduction since I was Studying for 1 year and was unemployed? (but presently i am working)
    2. If I transfer the amount to my new organization and would like to withdraw for purchasing house can I withdraw it, since the total tenure in new and old is 5.5 year but with a break of 1 year in between

    ReplyDelete
    Replies
    1. Albert - See answers below:
      1. No, you are not supposed to withdraw your old PF because you are currently employed. It is not correct. However, if you still go ahead and withdraw, you will need to pay taxes on the withdrawn amount. Lets say you get 2 lakhs as withdrawal and ur annual salary this year is 5 lakhs, your total taxable salary this year will be 7 lakhs

      2. Yes, you can. Once the transfer completes, your overall PF Age will be greater than 5 years and you will be eligible.

      Delete
  88. Dear Anand,

    Beauracracy in our country is also equally efficient. Electronic City PF office has initiated transfer abd issued annexure – k to me. I propose to lodge my application for withdrawal in Bangalore city PF office of Rs. 6lacs in the next week and to complete procedure of registration and payment immediately thereafter. (Typo correction – I have paid 80% of cost to builder, instead of 30% as stated above)

    I am able to open in my laptop PDF table from the link in your blog. I am not able to copy-paste the table on the blog. I can email the link to you. (My Email Id is shailendesai@gmail.com, if you need)

    I look forward to your concurrence.

    Best Regards
    Shailen Desai

    ReplyDelete

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