Dear Friend,

Thank you for visiting my Blog. Not all of us were born in a rich family and we always think about retiring as a CROREPATI. Thinking is one thing, have you done anything to achieve that dream?

In order to become rich, you have to invest and do it wisely. For that you need knowledge and ideas. There are a few good books that I have published which you can buy for a nominal price which can help you with that.

They are:

1. Your Complete Guide to Indian Income Tax and Retiring as a Crorepati
2. The Most Comprehensive Financial Guide for Women and
3. Safe Investment Havens of India

To know more about these books, their price and check out a sneak preview, please Click Here...

Best Wishes!!

Anand

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 Basic 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 Basic 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 Basic 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 Basic 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 Basic 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

204 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. 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
  3. 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
  4. 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
  5. 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
  6. 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
  7. 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
  8. 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
  9. 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
  10. 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
  11. 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
  12. 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
  13. 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
  14. 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
  15. 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
  16. 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
  17. 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
    2. Dear Anand,

      First of all thank you very much for this wonderful and helpful blog.

      In above case can you please confirm if the cheque will be issued on the sellers name or on my name?

      If in the name of seller, how can you provide the exact amount of withdrawal.

      PFI: I am planning to buy a flat and want to use the saving for the payment of premium to be made to seller.

      Thanks,
      Balaso

      Delete
    3. I heard that these days the payment is being released in the name of the account holder itself - these days.

      Delete
  18. 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
  19. 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
  20. 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
  21. 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
  22. 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
  23. 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
  24. 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
  25. 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
  26. 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
  27. 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
  28. 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
  29. 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
  30. 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
  31. 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
  32. 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
  33. 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
  34. Hi Anand,
    I have a query regarding my PF withdrawl, i have initated the PF withdrawl process after 4 months now i got the msg PF withdrawl is approved for pyment, Could you please let me know after approved how much time required to credit the amount in the account.

    ReplyDelete
    Replies
    1. 4 to 6 weeks is the usual time for payment after the request is approved.

      Delete
    2. how much time PF office takes to approve the request.

      I have to make the payment to the seller within 90 days.

      Delete
    3. Processing time is around 4 weeks. Sadly - There are no clearcut/defined timelines. Usually it should be completed within a months time but may take up to 6 weeks.

      Delete
  35. Hello,
    Well your command on PF issue is superb and I could see you have personally taken lot of pains to respond very well to all queries.Appreciate yr good work.
    I shall be completing 5 years in Nov14 and need to take withdrawl from PF account and request your pointwise reply
    1) I have taken home loan for Under construction(UC) builder apartment and my orginal papers are with bank. As it is underconstruction so I am planning to pay my next instalment from PF withdrawl, Is it possible?
    2) What all document are required for this? Is any document required from my company also?
    3) I understand cheque will be given in builder name but will it be given to me to further deposit to builder.
    4) Do I need to refund this withdrawl to PF?
    5) The installments for U/c property for builder are expected to be due in Nov 14, Mar15, and June15 to cover entire eligible withdrawl PF amount
    So can I get it withdrawl from PF as per time frame indicated.
    6) Can the payment be provided to two builders as I have other UC property and payment for that may also be due by that time.

    Thanks a ton

    ReplyDelete
    Replies
    1. Anonymous - Thanks for the compliments. See answers below:

      1. Yes, that should be ok. This would come under withdrawal for purchase of house. But, you need to wait until end of Nov 2014 when you actually complete the minimum 5 year service requirement

      2. proof that you are buying property, the amounts involved, who the amount should be paid out to (your builder), property documents etc. Your employer will be asked to give a proof of employment along with a service certificate to prove that you have been working for 5 years or more and ur PF acc was actie was so long.

      3. Yes. usually the cheque is given/sent to you but is addressed to the builder and you can hand it over to them. These days I heard that electronic clearance (deposit) is also available. so, if they are offering to directly pay the builders bank account - dont be surprised

      4. No. This is a withdrawal not a Loan

      5. the withdrawal will be allowed once and the full eligibility will be paid out in one shot. you can ask the builder to adjust whatever is the extra/deficit with you directly.

      6. No - I dont think so. When you submit documents you will do so for one property only and the cheque/payment will be given to that builder only.

      Delete
  36. Hello Sir,

    I don't want to ask any question. Your blog is pretty good and even helpful than official epf website. So far I got answers to all of my questions. I just want to express my thanks and appreciation for your blog on provident fund. Not only you have set up a blog to help the people but you have responded to anonymous people's queries within less a week. With due respect, my hat is off for you.

    ReplyDelete
    Replies
    1. Thank you Vivek. Appreciate the feedback :)

      Delete
  37. Dear Anand,

    I have query, which I think it was never discussed in the forum yet. Thanks in advance.
    1. I have 14 years of pf account, I had taken a loan(withdrawal) from my pf account in 2011 for the purpose of buying a flat from a promoter. The withdrawal got sanctioned and the full amount was utilized to pay the promoter u/s 68B 1 (bb) (say 20% (10 Lacs) of the total cost of the flat)

    I am a native of state A, and have been working in state B for last 14 years. Now I plan to buy a housing site in state A for building a house. Can I avail withdrawal/loan for this u/s 68B 1 (b). Neither I or my parents have an own house in state A, Now I have a flat in state B, but I don't own any other property neither in state A or B or elsewhere. My current pf balance will give me the amount to cover 30% (10 lacs) of the land cost which I am planning to buy.

    Thanks
    DS

    ReplyDelete
    Replies
    1. DS - No, I dont think so. As you have already availed the withdrawal for purchase of a house, I dont think it will be approved once again for construction of another house.

      You can anyways check with the PF office to be 100% sure. In case you learn that they will allow, please remember to tell me so that I can update myself with the latest info.

      Thanks.

      Delete
  38. Hi Anand,

    I want to book a flat with some builder and require some amount from my EPF account.Can you please suggest me how can i withdraw money from EPF account?
    1)which forms needs to fill and where will submit that form?
    2)which documents needs to provide to PF office?
    3)how much time PF office will take to give that amount?

    Thanks in Advance.

    ReplyDelete
    Replies
    1. Anonymous - Answers to Questions 1 & 2 are already present in the article. Pls check.

      Time - Usually, it will take 3 to 4 weeks to process your request

      Delete
  39. Hello Sir,

    After retirement, we shall get 90% of total corpus. It means is it 90% of employee fund plus employer fund? what about pension fund? we shall get some money(pension) against loosing this pension fund or else? And how many years and how much we shall get this pension?

    shall we get 100% of all funds after retirement by taking no pension?

    ReplyDelete
    Replies
    1. Nirmal - thats pre-retirement where you get 90% of the corpus. When you retire permanently, the 100% corpus will be paid out.

      Once you cross 10 years of service or 50 years of age, the EPS corpus will not be given to you. You have to select the monthly pension option only.

      Delete
  40. Hi, the information is very helpful in the blog.
    I worked for a company for around 7.5 yrs and then moved on to a new company. With in this 7.5 yrs period, I was at onsite for around 3 yrs totally (multiple short trips, probably 6-8 months every time) where I have not contributed to pf. The account was active all through. May I please know, if I can withdraw the amount for house construction? Please advise.

    ReplyDelete
    Replies
    1. Anonymous - Firstly, an account is not considered active even if monthly contributions stop coming in for a period of just 3 months. Secondly, while onsite, your company would usually contribute PF because you are still employed with them. Anyways, under the assumption your company did not contribute PF, total up the duration you were onsite and subtract the total from your 7.5 yrs exp. If the resulting experience is more than the eligibility requirement, then yes, you should be able to do the withdrawal.

      Note: Are you currently employed? if so, you may need to first transfer the PF money onto your current PF Account and then submit the withdrawal request.

      Delete
  41. HI Anand,
    I have purchased flat. First owner is my mother and second owner is me.
    My mother is dependant on me, Housing loan and everything is on me. Can i withdrawn PF in this case.
    Coz most of the rules says joint ownership should be with spause. I am not yet married.

    Kindly respond.

    ReplyDelete
    Replies
    1. Anonymous - Being a joint owner with spouse is the most common way people buy property and hence most rules are defined like that. As long as you are one of the owners of the property (irrespective of who the other owner is) you should be able to get the withdrawal.

      Delete
  42. Hi Anand, very informative blog...great work..!!
    I have some questions...I worked for organisation A from sep 2009 to june 2011 and then continued with further studies. From april 2013 i started working again with org B. Org A has a private PF fund and i have not withdrawn the amount from it yet. With The org B i have a govt pf account. I will be moving abroad post marriage by apr 2015 and i may or may not come back.
    In this situation what shall i do with my pf accounts? Shall i transfer the proceeds of first account to the new one as it will become dormant now, as its 3 years since pf has been deposited in it? When will i become eligible to withdraw the total proceeds from the govt pf account then? Or shall i withdraw the proceeds from org A pf account when i become eligible for tax free withdrawal and when will that be?
    What are the withdrawal policies when a person the country, as wold be in my case?
    Please suggest about EPS withdrawal as well from both accounts.

    ReplyDelete
    Replies
    1. First of all - You cannot transfer the money from acc A to acc B because acc B is no longer active (since you are abroad and not working in India). So, the only option you have is to individually submit a withdrawal request for both the accounts. Contact your old employers and initiate the formalities.

      Note - You will need to sign the forms and hence you can do it when you come here. If both organizations experience was less than 5 years, you will need to pay income tax on the withdrawals as well.

      Delete
    2. Hi, thanks for your reply.
      Currently I am working in India and will be leaving next year. If right now I transfer money from account A to B, will the years of experience also get added to the new account (question because a/c A is privately owned pf fund)?
      -Meenal

      Delete
    3. Yes - it will get added once the transfer completes.

      Delete
  43. Dear Anand,

    Pleased to inform you that i have recieved my PF withdrawal for housing of Rs.6 lacs through NEFT in my s/b a/c yesterday.
    During the course,i had discussions with Dy.comm.-PF,who confirmed that withdrawal will be directly paid to govt. & semi-govt. agency only. In case of purchase from private builder,the amount is paid to the member directly.This is consistance with the information provided on PF website vide table namely "instructions and guidelines for the advances to be claimed through form 31"'(the link to which is provided in my replies in april on your very useful blog)
    I thank you all the same for your extremely usefull advise.

    Shailen Desai

    ReplyDelete
    Replies
    1. Excellent news Shailen. Thanks for keeping me posted. Can you tell me how much time it took for the money to reach you - from the date you submitted? It will greatly help the other readers of this blog :)

      Anand

      Delete
    2. Dear Anand,
      I submitted my application around 24th april,14 and recieved payment on 2nd of june,say about 40 days.
      Howrver,there was a deficiency,I was asked to submit registered agreement and sanction letter and statement of a/c of financial insitute for loan.iI applied on basis of allotment letter & agreement of sale and it took me abt 12-15 days to register agreement and submit certified copy to PF.
      Hope the information is useful to bloggers.
      Regards
      Shailen Desai

      Delete
    3. Hi Shailen and Anand,
      does the same apply for purchase of site from private builder?
      I am not feeling safe with cheque being given on builder name.
      Please advice.

      Thanks,
      Sandeep.

      Delete
    4. Yes Sandeep. These days the PF account holder is receiving the money.

      Delete
  44. Hi ,
    I am going to resign my job.right now the epf balance shows for an amt till 201-2013.If i apply to withdraw the amt ,shall i get the full amt including 2013-2014.


    Thanks,
    Asvitha

    ReplyDelete
    Replies
    1. All your PF contributions up until your last month of employment will be returned to you as part of the withdrawal. Dont worry

      Delete
  45. Hello,

    I am working in a private firm for last 8 years.
    My basic salary is 15 thousand.
    My savings in PF account as iof todays date is
    Employee share -- 2 lakhs
    Employer share -- 30 thousand
    Pension amount -- 40 thousand.

    I am now planning to buy a flat.
    How much amount i will be able to withdraw from my PF account in order to buy the flat.
    Also what are the documents which i need to submit along with which form I need to fill.

    Please let me know.

    Regards,
    Kamat

    ReplyDelete
    Replies
    1. Kamat - you can get up to 36 times your basic or your PF corpus - whichever is higher. 36 times your basic is 5.4 lakhs whereas your PF corpus has only 2.3 lakhs (Pension corpus is not considered for this). So, if you withdraw you can get a maximum of 2.3 lakhs.

      All property related documents that are required to be submitted when you apply for a home loan will be required. The land documents, your agreement with the builder etc.

      Delete
  46. Hi Anand, Its wonderful reading all above your blogs. In my case, I left a company A after working with it from almost 5 years and now working with companhy B since May-2011. I had been opted for PF transfer from company A and completed all the formalities with it. But, my problem is that I AM NOT ABLE TO VIEW MY PF/EPS BALANCE DETAILS FROM ANY OF THE WEBSITE OR DOWNLOAD. When I try to see the PF balance from its official site, this says invalid Account.
    Please advise.
    Akash

    ReplyDelete
    Replies
    1. Akash - the EPF Department doesnt work like a bank and you cannot just download all your details. Talk to your employer and get a statement and check if the money has been successfully transferred.

      If you use the old pf account number you will get this invalid account problem because that account is closed already.

      Delete
  47. Hi Anand ,
    I was previsiouly working for an IT organisation i worked there for four years 2007-2011.

    I have applied for the pf withdrawl now which is close to 3 years after my resignation ,two months back.

    When i checked on the epf side for my balance it shows me ee as 40000 and er as 16000.

    Today i have recived 16000 in my bankaccount which i suppose is the er.

    My query is does both the amounts dispersed separetly .In case of some discrebency where i need to check .

    Regards
    Kk

    ReplyDelete
    Replies
    1. KK - The money usually comes together. Maybe this 16000 you got is the EPS withdrawal. Wait for a few weeks and you will receive the 56k from PF. If you dont, talk to your employer and find out what happened.

      Delete
  48. I left my company in May'14 and want to settle the pf. i would like to know how much tax will be deducted(service less than 5 years). Will tax be deducted as per the salary projected in my previous company for year Apr'14 - Mar'15. How can i calculate exact tax on my PF amount ?

    ReplyDelete
    Replies
    1. Anonymous - How much TDS Gets deducted depends from case to case. From a taxation purpose, the PF Amount you get will be added to your overall income for that financial year and taxed accordingly. For ex: If your income between April'14 to March'15 is 5 lakhs and you get 50,000 as PF withdrawal, your total annual income for the year will be considered as 5.5 lakhs and you have to pay tax on the total income.

      Anand

      Delete
  49. Hi,
    I am in some trouble regarding the PF amount in my previous company.
    Company deducted the amount from my salary and did not pay towards PF for few months since they went to financial crisis.
    After I left the company, i wanted to withdraw the amount. Company says they are not able to process my PF withdrawal since the amount is not completely paid in PF office though I was working in the organization.

    For the last 1 year they are not even turning up. I do not know what to do to withdraw my PF. I don't think I will get any help from my previous company and I worked there for 5 years. Now i am working in another company with a different PF account. It has been more than 1 year since I left my previous job.
    Can you please advise?

    ReplyDelete
    Replies
    1. Consult a good labor lawyer and request them to help you. It is the companys responsibility to remit the appropriate PF Amounts for their employees. If they dont, your lawyer can help you.

      Delete
  50. Dear Anand: My PF account was opened in April 2010, I contributed money in it till Feb 2013. Post that, I joined a smaller firm hence I did not have to pay PF. Please tell me a way to withdraw my EPF contribution without having to pay tax on it.

    Thanks,
    Rini

    ReplyDelete
    Replies
    1. Rini - Sorry, there is no way to withdraw your PF contribution now without paying taxes. Any pf acc which is closed before completing 5 years is fully taxed on withdrawal.

      The only option I see is - You can wait for a few more years, join a new company that has PF, transfer this PF to that company and withdraw after you complete a total of 5 years of service.

      If you withdraw the money now, the amount will be fully taxable. Sorry.

      Delete
  51. Hi Anand,
    Your article is very helpful...Thanks. My situation is as below. Please advise
    I was working for a Indian IT company for 9 years 10 months and I resigned and relieved on Jun10th.
    Now I've joined a American company in U. S within 2 months.
    I can not transfer PF account to new company as they are not a Indian company.
    What should I do in this case ?
    1. Can I withdraw (But I'm not unemployed for 2 months) ?
    2. If I leave the money as it is in the PF account, will it still earn interest and can I withdraw in future by approaching PF office directly?
    I'm not badly in need of money for any purpose. Please advise what is the right thing for me to do ?

    ReplyDelete
    Replies
    1. Amar - In case where your new employer does not have PF (Yours is a perfect example) withdrawal of the PF is allowed. If you leave the money as it is, it will stop earning interest after 3 months. So, better you submit the withdrawal request now and invest the money somewhere good.

      Delete
  52. Hi Anand
    Some problem related to withdraw EPF amount.My bank account joint with my wife . what possible to transfer EPF amount my joint account.

    ReplyDelete
    Replies
    1. Hi Pawan - Sorry, your question is not clear. What is the problem you are facing?

      Delete
  53. I have withdrawn my PF after 2 years of service and it attracts tax which is deducted at source.Now for Filing IT return in FORM 26 AS ,there is entry for EPF .I don't have any idea whether to add it as gross total income which will further attracts tax .Could you please help how could i show up this component of TDS if it's a part of income which is automatically visible in TDS section while E -FILING due to PAN details in ITR-1 and Tax already deducted on this?
    Please post it on punedhir@gmail.com .Thanks in advance.

    ReplyDelete
    Replies
    1. Hi - Consult a good chartered accountant or a tax filing service. they can help you. Such a situation is slightly tricky and if you mis-file your taxes, you may end up paying a lot of penalties and fines. The 200 or 300 rupees these guys charge you will definitely be lower than the head-ache you have to go through doing so by yourself.

      Delete
  54. Hi Anand,

    Thanks to you, I came to know that I can withdraw from EPF for the purpose of purchasing a flat only after I came across your blog. :)

    I have completed 6 years of service. For purchasing a flat on my name, I have paid 20% to the builder, and applied for a home loan from ICICI bank on the remaining 80%. The bank loan is not processed yet. Flat is not registered. Is it too late for me to apply for EPF withdrawal?

    After the bank loan is sanctioned and the flat is registered, can I withdraw the EPF amount and give it to the bank to reduce my home loan?

    Or should I contact my bank and request them to put my loan on hold, so that I can withdraw the EPF amount for purchase of the flat by making payment to the builder, which will help me reduce my bank loan amount?

    Could you please guide me with this?

    Thanks,
    Harini

    ReplyDelete
    Replies
    1. Hi Harini, yes you can withdraw now and use it to pay a portion of your home loan once the money is received.

      These days I think the money is directly credited to the account holder (you). Earlier they used to issue the cheque to the builder only. In case EPF Authorities insist that they will release the payment only to the builder, then dont worry. Just visit the bank (after EPF Issues the payment) and ask them to reduce the home loan amount equal to the amount that came from EPF and ask them to hold-off that payment to your builder.

      In case EPF gives you the money, you can do a part payment after you get the money.

      Delete
  55. Hi Anand,
    I am working in a company from past 5 months and now leaving the company as I am going for doing Masters. Would I be able to withdraw(not transfer) my PF money after 2 months of my resignation. I am afraid, as I heard that one can withdraw his/her money only after working for more than 6 months in a company( I have worked only for 5 months).

    Thanks,
    Ravi

    ReplyDelete
    Replies
    1. Ravi - No, there is no such rule. Even if you worked just 1 month you can get the money.

      Delete
  56. My wife worked in an organization for 3 years before our marriage. After marriage she resigned her job and now she is a homemaker. She filed for EPF withdrawal after two years. So, she withdrew the amount after 5 years. Also, since she is currently a homemaker she does not have any income. EPF amount received was less than 2lakhs. Does she have to pay tax on this income or not?

    ReplyDelete
    Replies
    1. If she has no other income, no she wont need to pay taxes but she would have to file a NIL TAX RETURN by showing the income received to make sure the process is closed properly. As the income is significant (2 lakhs) filing this NIL return would be a good idea.

      Delete
  57. Hi Anand!

    Thanks for this post! I'm planning to take a refundable loan from my PF account. I understand that the loan rate of interest is 1% more thank the rate of interest on the PF Deposits which currently is 9% and makes my loan rate of interest 10%. My question is when I start repaying the loan, whether this 10% interest is also credited to my PF account or whether this 10% is taken as profits by the PF trust?

    Thanks for your help!

    Regards,
    Mudit

    ReplyDelete
    Replies
    1. Mudit - Only your principal will be credited to your PF Acc. The interest you pay is profits for the PF trust which they will use to pay the 9% interest your PF deposits are making...

      Delete
  58. Dear Anand -- Thanks a lot for your reply. Further i am planning to enter agreement for 2 months with brother-in-law to purchase his land and apply for PF withdrawl. My Queries--

    1. Is it possible to pay the PFamount directly to brother in law?
    2. I understand folllwing documents required initially for withdrawing PF against purchase of site. Is it suffecient?
    a) Copy of Agreement
    b) Copy of Certificate issued by Sub-registrar/appropriate authority that site is free from encumbrances
    c) Copy of Certificate issued by Advocate that site is free from encumbrances
    d) Copy of Receipt from the registrar for having registered the agreement

    3) When EPFO will ask site registration certificate?

    Thanks -- Ravi.

    ReplyDelete
    Replies
    1. Ravi - These days I believe the PF Office releases the funds to your bank account (subject to approval) and you are expected to pay the other party. Yes, the list of documents you mentioned are sufficient to prove the fact that you are buying property from a 3rd party. The purchase agreement effectively means that your purchase of the plot is over. I dont think you need to submit the registration certificate.

      Delete
  59. Are EE and ER of EPF part amount is seperate from EPS part amount which comes from Table D of PF list? And how much time it takes for EE n ER to get credited through NEFT after EPS credit? And if EPS gets credited through NEFT in bank account and if we receive any sms as your form 19 EPF is approved through cheque, will it then come in the form of cheque or it will be through NEFT in to bank account directly and if through cheque, then where will the cheque gets delivered? Home address or Employer address? Please confirm

    ReplyDelete
    Replies
    1. See answers:
      1. Yes, EE & ER Amount is separate from EPS Amount
      2. All transactions take about 4-8 weeks from the date of approval of withdrawal request (both epf and eps)
      3. If one got credited to your bank account, then the other will follow the same route too.
      4. If the cheque route is taken, the delivery address would be based on what you filled up in the withdrawal form. Usually people fill home address during withdrawal because they may or may not be employed with that employer by the time the money comes.

      Delete
  60. Hi Anand,

    this is praveen.

    I hve submitted pf withdraw forms 19 and 10c.

    In my PF pass book showing 28k under EPS section. i hve completed 4 years 5 months in my last company.
    How much amout will i receive under this section.

    Please help me on this.

    ReplyDelete
    Replies
    1. EPS withdrawal does not happen based on amount accumulated but based on no. of years of service and last drawn basic salary. check this link for more details: http://anandvijayakumar.blogspot.com/2013/03/how-much-pension-will-i-get-through.html

      Delete
  61. Hello Anand,

    From this blog, I can get more or less every answer to my queries.
    I need a Suggestion from you!

    I was working for a MNC Company in India & sent abroad (their own Branch). Later I resigned from this Company & joined a new Company here in abroad. I did not had the time to come back to India to settle my dues. Company wants me to come back to India to settle all the dues but unfortunately I can not come until next year end. How to settle my PF amount? I am nearly sure they will not sign my PF application as well.. (We have some legal Agreement Dispute).. What do you think will be the best Approach?

    Thank you in advance!
    Yash

    ReplyDelete
    Replies
    1. Yash, unfortunately there are not many choices here. Legally a company is not expected to stonewall an employees pf withdrawal just to settle the disputes they have (Ex: not service notice period) but almost all companies do that. The one option you have is to visit India and negotiate with your old employer and settle things amicably. You have an option to proceed legally using a lawyer but if you have a legal dispute with them, it could backfire as well.

      Delete
    2. Hello Anand, thanks for your answers..
      When I come India, I am planning to Attest the pf form from my Bank Manager. I have downloaded the pf Statement from the Website. I also have a mail comunication from my previous employer for not settling my dues... Assume this should work.. what do you think?

      Thank you,
      Yash

      Delete
  62. Hi Anand,

    I worked with a Company for about 4 years. Along with PF, some of my Money was diverted into VPF as well. I have claimed them under sec 80C for tax benefit. If I withdraw my PF now, will they deduct tax? Total accumulated amount is around 4lacs.. currently I have no Job or income in India.. what if I withdraw next year (after 5 years)?

    Thanks,
    Amar

    ReplyDelete
    Replies
    1. Amar - no matter when you withdraw, Now or next year or 2 years down the line, the withdrawal will be taxable because the age of the PF Acc is only calculated for as long as monthly contributions were made.

      If you want to avoid the tax, you can wait until you join a new job and then transfer this PF there.

      Delete
  63. Hi Anand,

    I have a few questions

    1) When I transfer my PF account , do I get a new PF account number and the money is transffered to the new from the old account or does the PF account number remains the same.

    2) Suppose I have a moved to a new company after working for 3 years in company A. Considering I am working and there is no gap in employment.
    I have opened a new PF account in the new company assuming I can withdraw the money in old PF account.
    However, I cannot because I am still working .
    The question here is why I am allowed to open a new PF account when I already one.
    The next question is, in the current situation when can I withdraw the old PF account's money.
    Can I still move my money in old PF account to the new PF account .





    ReplyDelete
    Replies
    1. Abhay - See answers:
      1. You usually transfer your old pf account money into an existing pf account. So technically you are not getting a new account number. (This existing account will be opened by your new./present employer when you switch jobs)
      2. No, you cannot withdraw money from your old pf acc when switching jobs or when you are presently employed.
      3. Good Q - The government technically says that you are not supposed to open a new pf acc when an old one exists but most people do. This is why government is coming up with a universal pf acc number which you can take with you when you switch jobs.
      4. Never. As long as you are employed, you cannot withdraw the old pf acc money
      5. Yes you can transfer money from that old pf acc into your present pf account even now.

      Delete
  64. Hi Anand,

    Thanks for the answers to my previous questions :)

    Just a few more..

    1) How can I transfer money from my old pf account to new pf account.

    2) If I move onsite,, on temporary work permit (ICT) , what happens to the PF account in India.

    I think I cannot withdraw the money from it because I havent left the company effectively.

    Also, because money is not being credited into that PF account any longer. So, does that account become inactive and if it becomes inactive am I supposed to get any sort of interest.

    ReplyDelete
    Replies
    1. There are forms you would need to fill up and submit. Read this article: http://anandvijayakumar.blogspot.com/2012/10/can-i-transfer-my-pf-account-to-my-new.html

      Even if you go onsite, usually your pf acc in India remains active and your company will continue to contribute towards teh same.

      Yes, if no monthly contributions are made, your account becomes inactive and you wont get any interest.

      Delete
  65. Hello,

    I worked for a company for 17 years and now taken up a job abroad with a different company. Can I withdraw 100% of my PF? Will it be taxable? Also, what is he process for this?

    ReplyDelete
    Replies
    1. Yes, you can get 100% of our PF and it will not be taxable. There are forms you need to fillup and submit along wth endorsements and attestations from your company. Talk to your employer, they will have the requisite forms and will help you fill them.

      Delete
  66. Hello,

    In my PF statement, I see three components - Employee Share, Employer Share and Diverted to Pension funds. So what is my total PF balance? Should I be adding these three components? Can you please explain what this Divered to Pension funds mean?

    ReplyDelete
    Replies
    1. No, you should only add employee and employer share. The pension fund share goes into your Employee Pension Scheme EPS Account. REad this: http://anandvijayakumar.blogspot.sg/2013/03/how-much-pension-will-i-get-through.html

      Delete
  67. Hi, I have complete six years in job, now I need money for marriage purpose. So can I get money from my PF a/c.

    Pls. infrom...

    Rathin

    ReplyDelete
    Replies
    1. No, for marriage you must complete 7 years

      Delete
  68. Hi Anand, congrats for putting up such an informative blog :).

    I have been in service for last 18 yrs. in total, with various organizations. I also got all my PF amounts consolidated into the current organization's PF Account, that is under the trust. My service in the current organization is a little over 4 years only. Now I want to withdraw money from the my PF to repay the home-loan for the flat that is in joint name with my wife. Few questions:

    1. Given all these conditions do you think I will be allowed to withdraw money from my current PF.
    2. What do you mean by withdrawal and what do you mean by advance, are these same o different
    3. If withdrawal allowed , how much time does it take to get the money and if you can confirm, in whose name the money be disbursed to the lending bank or in my name.

    Thanks
    VN

    ReplyDelete
    Replies
    1. 1. Yes, you completed 10 years so you can withdraw
      2. Advance means you will repay the money. This is a withdrawal which means you dont need to repay
      3. Usually around 4 weeks and it will be disbursed to your bank account or cheque will be sent in your name

      Delete
    2. Thanks for the reply Anand. One more clarification required. I enquired with the HR people in my organization, as per them the amount will be disbursed in the name of the lender bank only not my account, also they mentioned about one more strange condition that the withdrawal can be done for the loan repayment only in case I have taken loan from a Nationalized bank not if I have taken from a private bank. This seems strange to me. What is your understanding on these aspects. Can you help with any reference document that I can refer to and share the same with my HR folks to contest their understanding.

      Rgds

      VN

      Delete
    3. VN - I am not aware of any such condition that a loan can only be repaid for a nationalized bank. Yes, it is strange. but, sorry I dont have any documentation as such. You can maybe consult any chartered accountant or ask your employer to show the clause that says only loans taken on nationalized banks can be repaid

      However, the point that money wll be disbursed to the bank where the loan is being repaid is fine. This is done to ensure people dont misuse the withdrawal clause.

      Delete
  69. Hi Anand,

    First of all, I wud like to tell u that u r doing a fabulous job and your help for people is very appreciable.

    Like others, I have question too, and that is: "I worked for a MNC for 5.5 years and left that company in January 2014 and then I started my own business and got busy settling it. Now it has been almost 7 months and I have not applied for EPF withdrawal yet. Can I apply now or later, or isn't any time boundation withdrawing EPF??".

    2nd Question: "How much time EPF department takes to send EPF amount in bank account??".

    and is the procedure same like this-->>Filling up for 10c and 35c(i dont know the names exactly, just knows there are 2 forms, I have both of them)--->>Taking employer sign on both forms(HR)--->Sending it to EPF Office(I live in Delhi but my EPF office is in Bandra, Mumbai)--->>Rest is their work.

    Thanks & Regards
    Gulzar

    ReplyDelete
    Replies
    1. Gulzar - thanks for your feedback.. See answers to your Q's

      1. You can withdraw any time you want. However, the longer you wait, the harder it would be for you to get your old employer to cooperate. So, its better you submit the request immediately.

      2. Usually it take about 3 months for the money to reach your bank account.

      3. Yes, fill up the forms, get your employer to sign & attest them and submit to epf office. Thats all.

      Anand

      Delete
  70. Submitted Form 31 to withdraw PF for buying the site, post my submission I realized that my ask is incorrect & less than what im entitled for.
    Is there a option to resubmit a review petition or should I resubmit the form again.
    PS : Entitled = Least of the three ( 24 Months X Basic + DA or Employee & Employer share including interest or Actual cost of the site)

    ReplyDelete
    Replies
    1. Vijay - The amount you are entitled to is always capped at the amount of money you have in your PF Account. If you have 50,000 as your PF Corpus (Employee share + employer share + interest accrued), no matter how much your 24 * Basic or actual cost of site is, the amount you can withdraw is capped at 50,000 rupees.

      You can always cancel your request and resubmit a fresh request provided your original request wasnt processed already.

      Anand

      Delete
  71. Hi Anand,

    I really appreciate your answers on helping people.

    My question is
    1. After getting the loan from my PF, do I have to pay it monthly? (As we do it when we get loan from other banks).
    2. If we have to repay the loan amount how much will be the interest rates? and for how many years tenure we can take the loan?

    ReplyDelete
    Replies
    1. Anonymous - These are not loans. These are withdrawals. It is your money and you are taking it for your use. You wont be repaying it. This is why the PF office sets eligibility criteria and the maximum amount you can withdraw is always capped to your PF Account corpus.

      Delete
    2. Thank you Anand :), can we also take loan on PF?

      Delete
    3. No anonymous, I dont think so. Per my knowledge, PF does not allow loans. You can only make withdrawals

      Delete
  72. Dear anand,

    I want to purchase a Agricultural land, I am working for the last 7 Years. can I withdraw my PF amount for this purpose?

    ReplyDelete
  73. Dear Sir,

    This is Satish from Thane self is planning to buy flat which will be registered on My name because i m taking home loan for the same on basis of my salary hence want to confirm whether my father can withdraw amount from his PF A/C for the same purpose as have completed only 2 and half years of service in my current job.

    awaiting for your soonest reply on above

    thanks in advance.

    ReplyDelete
    Replies
    1. If the house is registered individually in your name, NO he cannot withdraw money from his pf for you to buy the house.

      Delete
  74. Hi Anand,
    I worked in India between 2002-2009 at different cities (Kolkata, Bangalore, Chennai and Hyderabad). I also worked at different organizations during this time. I am now a US Citizen and settled in US permanently. What are my options of withdrawing the whole PF balance and bringing it back to US? I also do not have all my PF account numbers with me. Can you suggest what I can do?

    Thanks,
    Sugato Chattopadhyay
    Sugato_Chattopadhyay@yahoo.com

    ReplyDelete
    Replies
    1. Hi - Unfortunately I am not aware of the formalities if you become a citizen of a foreign country. The next time you come to India, it would be a good idea to visit the regional PF office nearest to your home town and request them for advise.

      In the mean time, you can reach out to your former employers and request them to share your PF Acc numbers. They will know the same. Do remember to take this info when you visit the PF Office.

      Note: The usual process is that you fill up the withdrawal forms and get them endorsed by your employer and then submit to pf office. The money will be sent to a "Resident Indian Bank Account" in about 3 months time. In your case, as a citizen of USA, you cannot have even an NRI bank account. So, am not sure how this will work.

      Anand

      Delete
  75. Hi, I am planning to purchase a flat, is it possible to apply for PF withdrawal with DTCP approved details? Flat not registered yet in my name.

    ReplyDelete
    Replies
    1. You should at least give an agreement between you and the builder that confirms that the flat will be registered in your name. Else, the withdrawal wont be approved

      Delete
  76. Hi. I'm planning to buy a new house which is under construction, so for down payment I would need my PF corpus. What are the general timelines these days to get the PF corpus credited in bank account? Also do I need to also mention in the declaration for form 31 the property details - like builder name, location, approved authority, etc... I'm still surveying for property, hence don't have any concrete details with me immediately.

    ReplyDelete
    Replies
    1. Hi - The processing usually takes around 4-6 weeks. Unless you sign an agreement with a builder/seller about the house, your request will not be approved. though the money will come to your account, without a signed agreement, the pf office wont accept your request.

      Delete
    2. Thanks for your response. Agreement can only be done once I pay the builder 20% of the cost of the flat. However I have considered the same 20% as part of my down payment which in turn will be paid through my PF corpus.

      Is it possible that I can send a copy of agreement to PF office once I pay through my PF corpus as you mentioned the money will come into my account?

      2. How does it matter if the money is in my account - and I don't produce an agreement?

      3. Can only booking receipt & a draft agreement suffice the purpose for this need?

      4. Does the PF amount withdrawal comes with both employee & employer contribution or it only my contribution which I can withdraw?

      Delete
    3. Anonymous - Answers

      1, No, it is not possible. The PF Office will not release the funds unless you provide the agreement. Without an agreement what is the guarantee that you will actually buy the house? You might use some random booking receipt and thn drop the idea of buying the house. Right?

      2. Not possible. You will not be able to get the money from your pf corpus without the agreement

      3. No, not possible

      4. Yes, both employee & employer contribution plus any interest you earned can be withdrawn

      You can talk to the builder and pay - lets say 5% or something and sign an agreement and then use the pf corpus to pay for the rest of the 20% part.

      Delete
  77. Dear Anand, Its great reading all above your blogs. I need your suggestions on below .

    I joined a company in 2011 and after working for 2 years, I was transferred from one State to another State but in the same company. Now its been 2 year here and the PF no has also changed to New. Can I withdraw my PF old PF amount ?.

    ReplyDelete
    Replies
    1. No, you cannot because it was an internal transfer. I think the money from your old pf acc would've been transferred into this new pf account that got created - automatically. Just check and make sure this happened.

      Delete
    2. Thank you Anand for the clarification. Shall get it done.

      Delete
  78. Hi Anand,

    Can you please tell me the tax i have to pay if i withdraw money from my PF account for the purpose of purchasing a home ? (Withdrawal will be of around INR3,50,000)

    ReplyDelete
    Replies
    1. There is no taxation on withdrawals done for purchase of a house..

      Delete
  79. Hi Anand,
    was working since close to 2 years in "X" organization and moving to Y organization by resingning with X.. so my question regarding PF is if I withdraw my PF amount will i get full amount.. whatever am having in my account & if yes.. how many days i should wait to get credit my pf amount.. & can i continue the same PF account with my Y organi.. after withdrawing ..

    Thanks
    Nagarjuna

    ReplyDelete
    Replies
    1. Firstly - you cannot withdraw your pf money if you are going to join a new job. If you do so and the pf authorities catch you, you will be penalized heavily.

      The EPF department has introduced a universal account number which you can take with you while moving jobs - http://anandvijayakumar.blogspot.sg/2014/08/great-news-universal-account-number-for.html

      So, you will just continue the old pf acc number with your new job also

      Delete
  80. I am planning to apply for PF advance from my sisters marriage, I have completed 7 years this this month. But as my sister's wedding is scheduled in a week time, will the PF office accept my application?

    ReplyDelete
    Replies
    1. No I dont think so. you should complete the 7 years of service before your request is submitted and the event/function should happen after the 7 year mark.

      Delete
    2. Thanks for the response & sorry for the confusion.

      I have completed 7 years of service this Sept12th 2014 & my sister marriage is scheduled Sept 29th, 2014. Can i apply for PF advance for sister's marriage?

      Delete
    3. Yes, I think you will be eligible. Jus note that the withdrawal usually takes around 3-4 weeks to process.

      Delete
  81. Hi Anand,

    Hope you are doing good. I had a question about EPF, not sure if its already being asked by someone else.

    I worked for a company about 1.8 years and now got a transfer from same company to US and started working from there. I wanted to know if i can withdraw my EPF amount , if yes, how much would be the tax applied on amount. Is there any benefit if i leave it open for another few years.

    ReplyDelete
    Replies
    1. Has your company closed your pf account because you were transferred to their US office? Most companies wont do that. Your pf account will be kept open/active until you come back to India and they will resume the same. So, I dont think so.

      Delete
  82. Hi Anand: My query is quite unique in the sense, supposedly a Indian born, US citizen, working a x company, relocates for 3 years, and then plans to return back to US for a different position in the same company. Will he/she be eligiable to close his PF account and withdraw the amount. Please confirm.

    ReplyDelete
    Replies
    1. It depends on whether you would continue to be on the payroll of the same company with a possibility of returning to India.

      If you wont return to India to be employed with this company, then I suppose you can withdraw

      Delete
  83. Hi Anand,

    i had left my previous co. in dec12 but till today i had not applied for my PF as i dont knew my PF account number. Please tell if it is possible now to withdraw my PF . There was no formal resignation proof.

    ReplyDelete
    Replies
    1. Anonymous - you do not need resignation proof to withdraw pf but you need proof that you had a pf account. Contact your old employer and find out more detail reg the pf acc you had. Your old employer would have to attest/sign the pf withdrawal forms for you to get the money

      Delete
  84. I have completed all transactions including bank loan disbursement for purchasing a new underconstruction flat. Only sales deed is pending. Whether i would be able to get PF withdrawl for the money already paid to developer.

    ReplyDelete
    Replies
    1. Mitesh - IF all the amount is already paid off, am not sure if you would get the money. But, you can try.

      Delete
  85. Hi Anand

    Thanks for posting such an informative article on PF.
    I have one query about calculation of number of year whether it works as Gratuity years in round figures i.e. 6 years 7 months go for 7 years or it has to be the complete 7 years.

    Also can you guide us whether we can get any type of loan/loans on the basis of PF account what are the eligibility criteria etc.

    Thanks

    ReplyDelete
    Replies
    1. Read this article to learn more about EPS - http://anandvijayakumar.blogspot.sg/2013/03/how-much-pension-will-i-get-through.html

      No, PF does not offer any loans. You can only make withdrawals if you meet the eligibility criteria. This article explains all those legit reasons for which you can withdraw from your pf account

      Delete
  86. Hi,

    I Abscond from the company because of my bright future.So I will get my Provident fund or not

    Reply asap

    ReplyDelete
    Replies
    1. The PF money is your money and you can always get it - BUT, you will need your old employers signature & Attestation before your withdrawal or transfer request is processed. So, firstly you would need to reach out to that company and come to a compromise. Then they will help you fillup the withdrawal or transfer forms.

      Delete
  87. First of all, thanks and kudos to you for this wonderful initiative.
    I have worked with this company for 5.5 yrs. i have a pf account for the said period.now i actually want to close the pf account for good as i want the money to be credited along with my salary. Can i opt to close my pf account totally? i will be joining a new employer in mumbai in next 1.5 months. i don't want to transfer my pf a/c there. i told them that i want to opt out of pf there. Can i opt in for pf anytime later in the middle of my employment with that organization.?Please advice asap as it is very crucial. thanks in advance.

    ReplyDelete
    Replies
    1. Firstly - While switching jobs, you are not supposed to close your old pf account (If your new employer has pf facility). Secondly - once you enroll in the pf scheme, you will have to stay enrolled until you are employed with the company. A company cannot offer pf only to a select set of employees. Either you offer pf to everyone or no one.

      Delete
  88. Kindly consider my case.
    1. I left my job of pvt company on jan, 2010. I have the release letter with me.
    2. I joined a central govt job on Dec, 2012. Since then I am working there.
    3. I went to the former employer with documents and the hr accepted the documents and later confirmed that it had been duly attested and submitted.
    4. After 3 months when i visited sub regional pf office the told me that no such document has been received.
    5. I tried to contact the employer but he didn't pick up phone.

    Am I eligible to withdraw my epf money?
    Is it mandatory to furnish unemployment certificate? ( as i am not unemployed)
    Which forms needs to be filled if I am to complete the process myself?
    Which documents should be furnished along with the forms?
    Can I get them signed by the gazetted officer of my current office?

    ReplyDelete
    Replies
    1. First - no, you are not eligible to withdraw your pf because you are presently employed. No, you cannot process the form yourself. Your old employer would have to sign/attest the withdrawal or transfer forms. Along with the form proof of employment and proof that pf was contributed on your behalf is usually attachd by the employer. No, you cannot get any gazetted officer signature for your old company pf account.

      There are two forms for withdrawal form 10 and form 19 but in your case that is not applicable since you are working now. So, initiate a transfer request to transfer the pf funds from that old employer to your current pf account. Talk to the old employer and re-initiate the process of transfer of pf

      Delete
    2. As I mentioned earlier that I am currently employed with govt of India and I don't have any type of pf a/c with my current employer i.e. govt of India. So, my case is different. I do have PPF though for tax saving and investment purpose. So is it possible to transfer balance from EPF to PPF? if not what should I do to transfer or claim my epf money?

      Delete
    3. If you dont have a PF Account, an exception case to withdraw ur pf can be made. So, contact your old employer to initiate the withdrawal proceeds.

      Note: 1. You cannot transfer EPF to PPF Account. 2. If you were employed for less than 5 years (in your old job) this withdrawal will be fully taxable and you have to pay tax on that withdrawal, this year.

      Delete
  89. Hi,
    I have worked for 4 years and 2 months in India and have now moved to Dubai. How can I aplly for PF withdrawal withour incurring any Tax liabilities?

    Thanks,
    Ankit Kapoor

    ReplyDelete
  90. First of all, I must say that your blog is the most useful link I have found for resolving any issues pertaining to Provident Fund.
    My query is pertaining to withdrawal of PF by an NRI.
    For Tax filing year ending March 2015, I won't be a resident as I moved to Dubai in Sep 2014 (thus spent more than 182 days outside India),
    I have a work experience of 4 years and 2 months in India, so my issue is that:
    1) Given that I am no longer a resident, am I eligible to withdraw the PF without incurring any tax liabilities (owing to cessation of employment?) and if UAE doesn't have an SSA with India.
    2) Also, since the PF laws state that one is only eligible to withdraw from the fund after completing 5 years of continuous service. Now, given that I was employed for 4 years and 2 months in India, would I incur a tax liability if I withdraw the PF now (due to the 5 year stipulation clause?). Is there a chance that the clause could be interpreted in such a way that i would still have to pay the tax even if apply for a withdrawal 5 years after the set up of my PF account date? (As my years of service in India would still be 4 years and 2 months)

    Thanks,
    Ankit Kapoor

    ReplyDelete

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