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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

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

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

      Delete
  5. 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
  6. Thanks for the information Anand. Please help with the below mentioned query.

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

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

    Thanks..

    ReplyDelete
    Replies
    1. Anonymous - see answers below:

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

      Anand

      Delete
  7. Dear Anand,

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

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

    Thanks in advance.

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

      Delete
  8. Hi Anand,

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

    Thanks in advance.

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

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

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

      Delete
  9. Hi Anand,

    You seem to be a PF guru. :)

    Please guide me.

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

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

    Your suggestion in this regards is highly appreciated.

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

    Thank you in advance,

    Pranathi

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

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

      Anand

      Delete
  10. Hi anand,

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

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

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

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

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

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

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

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

      Delete
  13. Hi Anand,

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

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

    Thanks in Advance

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

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

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

    ramanand singh
    mob 9993527977

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

      Delete
  15. HI Anand,

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

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

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

    could you please confirm the same.

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

      Delete
  16. 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
  17. 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
  18. 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
  19. 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
  20. 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
  21. 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
  22. 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
  23. 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
  24. 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
  25. 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
  26. hi! I am v ramesh. I work in a company and the company has a pf trust of its own. I have already withdrawn pf once in the year 1999. also I have withdrawn for repairs in the year 2006. I had applied for withdrawal again and I was told that I cannot withdraw again for purchase of property as I have already withdrawn once. This condition is nowhere mentioned in our pf rules book. 2. I have taken one more house by taking housing loan from a hfc. can I withdraw now for repayment of this loan. kindly give your views. thanks. v.ramesh.

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

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

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

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

      Anand

      Delete
    4. Thanks for helpful replies.

      v ramesh

      Delete
  27. Hi Anand,

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

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

    Appreciate your valuable help.

    Thanks. Mani

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

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

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

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

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

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

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

    Thanks in Advance

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

      2. 4 to 6 weeks

      3. Yes, the last drawn basic salary

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

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

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

    sir pls guide me what to do now?

    thanks.........!

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

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

      Delete
  31. 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
  32. 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
  33. 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
  34. 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
  35. 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
  36. 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
  37. 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
  38. 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
  39. 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
  40. 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
  41. 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
  42. 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
  43. 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
  44. 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
  45. 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
  46. 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
  47. 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
  48. 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
  49. 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
  50. I left my previos job(contributary PF) in 13 months.
    In the same month,I started my current job where I
    will be completing 5years in current job in june,2014.My previous company PF is not so far tranferred to present a/c.
    Can I put my housing withdrawal application and
    tranfer of pf application together,by qouting both pf
    a/c nos.Pl advice

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

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

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

      Pl. advice
      Best Regards
      Shailen Desai

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

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

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

      Delete
    6. Anand/Shailen: Can you please confirm on this point?

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

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

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

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

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

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

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

      Delete
  53. Dear Anand,

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

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

    I look forward to your concurrence.

    Best Regards
    Shailen Desai

    ReplyDelete
  54. Hi Anand,

    Very good article and thanks for providing the details. I had a couple of queries.
    I have currently purchased a flat which is under construction. I am planning to withdraw my PF towards balance payment to the builder. Builder will send payment request in next couple of months. I have completed more than 5 years in service and had different PF accounts with different companies in the past. I have not yet availed home loan and I am planning to pay as much as possible before availing home loan.

    I will furnish copy of sale agreement and copy of all payments made to builder till date along with Form 31 and Form 31 declaration.
    1) Is there anything which I need to get from builder or furnish from my side ?
    2) Are EPF withdrawal rules for purchase of flat different in different states ?

    Thanks again and I look forward to your response.

    Regards,
    Rashmi Pathak

    ReplyDelete
    Replies
    1. Hi Rashmi - See answers to your Q's below:

      1. No, a copy of the agreement and the payments required from your side should be sufficient. Anyways - its better to check with the EPF Office or your employer to double confirm.

      2. No, the rules are the same across the country. So, if you know a family member or friend who did the withdrawal from a different state, you can get their advise.

      Thanks

      Delete
  55. Hi Anand,

    I have purchased a flat and paid all the amount to builder two months ago. The flat is registered/sale deed in my name. Now, I want to withdraw from PF account. Please let me know, if the amount paid towards Stamp duty and Registration can be claimed into my savings/salary/loan account.

    P.S: 1. Just now completed 5 years in PF, when flat was registered had 4 years 10 months in PF
    2. Since, amount will be paid only directly to builder by PF, claiming only the the Stamp duty and Registration paid by us to Sub-registrar for completing the purchase.

    ReplyDelete
    Replies
    1. Anonymous - As you have completed 5 years you should be eligible to withdraw money but - I dont think you can cover stamp duty and registration expenses. Anyways, the money will usually be sent as a cheque to your builder only and will not be credited into your bank account. This is done to ensure that people just dont misuse the withdrawal option and get money from their pf acc without actually buying a house.

      Delete
  56. hello anand,

    I had a few queries regarding EPF advance withdrawal

    1)I would like to withdraw advance PF against purchase of a flat, in this regard will i have to repay the amount withdrawn at a future date.
    2)Since my PF office is in Delhi and i am based in Mumbai will i be required to go personally or can it be sorted through company PF desk.
    3) The bank account to which the amount will be credited does it have to be a nationalized bank or can a pvt bank account be used for the purpose.

    Thanks& Regards

    Eapen

    ReplyDelete
    Replies
    1. Eapen - See answers below:

      1. No, you dont have to repay. This is a withdrawal not a Loan
      2. It should be ok. Submit the documents through your employer and they will route it to the pf office where your acc is maintained
      3. Money will usually be given as a cheque to your builder to avoid misuse. However, i dont think the bank being nationalized or private will have any impact on the same.

      Delete
  57. 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
  58. 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
  59. 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
  60. 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
  61. 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
  62. 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
  63. 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
  64. 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
  65. 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
  66. 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
  67. Hi Anand,

    If i submit the PF transfer form to transfer my PF amount from old company to new one. Do they transfer the PF amount along with pension fund amount or need to submit the separate form for Pension fund.

    ReplyDelete
    Replies
    1. No, I dont think so. You will need to submit a separate request. Per my knowledge, two forms have to be filled and submitted.

      Delete
    2. Hi Anand,
      Suppose i changed the company from A to B and i transfer the the pF amount from A to B but the pension amount remain to transfer and now i moved to company C, so is it possible to transfer the pension amount from A to C?

      Delete
    3. In case of EPS - no actual money gets transfered. Only the years of exp gets transferred. Anyways, yes it is possible.

      Delete
  68. 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
  69. Hello,

    I have 10 years of service and I am buying a site and immediately constructing a house there. I applied for PF loan for purchase of site. However, the loan processing was taking time and the site purchase had to be completed urgently because of pressure from seller, so I completed the purchase and registered the site in my name using my personal savings. The PF loan got approved after this and I got the cheque for the loan amount. Now, do I need to cancel the cheque and need to repay it back to PF? Or can I use the loan amount for my house construction? Can I invest the amount in some sort of liquid funds and withdraw from there and pay to the contractor for payment at different phases of construction? Is there any documentation I need to keep to prove that the PF loan amount was indeed used for land purchase or construction?

    Thanks,
    RV

    ReplyDelete
    Replies
    1. RV - It is always a good idea to keep some proof to prove what u did with the money because PF does not allow withdrawals apart from legit reasons. In your case, I think you can use the money to construct your house. However using the money for investments will not be a good idea because if a Question arises about your usage of the funds, construction is ok because even PF allows you to withdraw for construction of a house.

      Anand

      Delete
    2. Thanks a lot Anand. So, in my case, I can just keep the money in my savings account and then use it for payment to the contractor for construction of the house (which will be staggered for next 8 to 10 months) ? Will that be okay?

      Delete
  70. 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
  71. 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
  72. 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
  73. 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
  74. 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
  75. Hi Anand,
    Your blog is very informative and really mean to thank you for putting the effort to respond to everyones queries. I have a peculiar situation and would request for a resolution.
    I joined company A in Dec 2007 and worked on their rolls till Oct 31 2010.
    Company was bought over and merged with company B in Nov 2010 and we shifted in as employees of B same time. The PF account transfer was initiated but not completed for quite some time. I moved out in Feb 2012. Total time reflected in PF of B - 4 years 3 months and 10 days.
    Joined C in mid Feb 2012 and left them in May 2013. The new PF account was opened but the transfer was not effected in time since A's transfer to B's accounts was not initimated and I was not getting a clear status from HR on the same till about a month after I put in my papers in C.
    I am now a part of a small team and there is no PF facility currently.
    Will a withdrawal from B and Cs accounts attract tax? Is there a way I can justify my position to the authorites?

    ReplyDelete
    Replies
    1. Shweta - No, you cannot justify your position. If you want to avoid the taxation, you have to follow-up and chase your old employers A & B to make sure that the PF Accounts get transferred onto your C Account and then submit the withdrawal request. If you withdraw now, individually A, B and C are less than 5 years old and hence all the 3 withdrawals will be taxable.

      Anand

      Delete
    2. Hi Anand,
      I have booked a flat and entered in to a joint agreement with my father, though the full amount is being paid by me. I applied for a withdrawal from my PF against purchasing of flat, but it got rejected stating the agreement should be on my name, or spouse's name or jointly owned by me and spouse (no other than spouse). Now i saw your comment on this block saying as long as you are one of the owner you should be able to withdraw PF. Can you guide me with some pointer which i can show to the PF agency to get my Loan sanctioned?

      Delete
    3. Siva - Mostly you are a joint owner only with your spouse. And my answer was based on my understanding. If the EPF Office is no longer accepting applications where you jointly own with someone else apart from your spouse, then unfortunately there is not much I can do to help.

      Apologies.

      Delete
  76. 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
  77. 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
  78. 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
  79. 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
  80. 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
  81. 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
  82. HI Anand

    One of the employee of our company worked only for 6 months and 15 days, now he is asking for PF with Draw. So , could u help me in this regard.
    Wether he is eligible to withdraw PF.

    ReplyDelete
    Replies
    1. Even if that person worked for just 1 month, he/she will be eligible to get their PF money when they resign from your company.

      Delete
  83. 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
  84. 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
  85. Hi Anand

    I have completed 6 years of service. I am planning for PF withdrawl against purchase of land, Is it possible in the case for land transerred from my Mother in my name? Further we are 4 childrens.

    If so what is the documents to be submitted.

    Thanks

    ReplyDelete
    Replies
    1. No, you cannot withdraw from your PF to purchase land in your mothers name.

      Delete
    2. Thank you anand ji

      You mean i cannot withdraw PF for purchase of land from Father and Mother.

      Is it possible to withdraw if i purchase land from Uncle or brother in law.

      Thanks

      Delete
    3. For purchase from father or mother - No. That is your inheritance you cannot buy your parents property. Uncle or brother in law - Yes you can but in this case you should actually be buying the house or land and paying them by cheque or cash. Your uncle/brother in law or whoever it is has to show this money as an income as per the prevailing tax laws. If so, yes you can withdraw

      Delete

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