Almost all of us are working for a company and we contribute a small percentage of our monthly salary into our EPF accounts. We all know that PF is a great saving instrument and it will help us generate a corpus for our retirement. All that being said, many of us do not know the fact that we can withdraw money from our PF account for emergency cash requirements. Yes, you read me right. WE CAN withdraw money from our PF accounts. After all, it is our money and we definitely have the right to take it when we need it the most.
A Word of Caution before we proceed:
The Purpose of the PF account is to generate a corpus for our retirement. So, we cannot and should not treat it like a bank account. We cannot try and withdraw every few months of whatever is left in our account. If possible, try to manage the situation without having to dip into the PF Savings. If nothing works, then check if you meet any of the below mentioned criterion and if you do, get the money from your PF Account.
Premature withdrawals can be made from your EPF corpus if the reason falls under any of the below mentioned categories and you satisfy all the necessary requirements.
| Justified Reasons for PF Withdrawal | |||
|---|---|---|---|
| Reason | Requirements | Amount You Can Withdraw | No. of Times allowed |
| Marriage or Education | 1. Must have completed 7 years of Service 2. Can withdraw for self/children/siblings marriage 3. Can withdraw for self/childrens education | 50% of the corpus | 3 times during your Total service |
| Medical Treatment | 1. Can withdraw for medical treatment of self/children/spouse/parents 2. No Restrictions on No. of years of service | Total corpus or 6 times your Monthly Salary (Whichever is lesser) | No Restrictions (Anytime) |
| Purchase or Construction of House | 1. Must have completed 5 years of Service 2. House must be registered in your name or spouse's name or jointly owned | Upto 36 times your Monthly Salary | Only Once in your Total Service |
| Repayment of Housing Loan | 1. Must have completed 10 years of service 2. House must be registered in your name or spouse's name or jointly owned | Upto 36 times your Monthly Salary | Only Once in your Total Service |
| Purchase of Plot | 1. Must have completed 5 years of service 2. House must be registered in your name or spouse's name or jointly owned | Upto 24 times your Monthly Salary | Only Once in your Total Service |
| Alteration of House | 1. Must have completed 5 years of Service 2. House must be registered in your name or spouse's name or jointly owned | Upto 12 times your Monthly Salary | Only Once in your Total Service |
| Pre-Retirement | 1. Must be 54 years of age or 2. One year before Retirement whichever is Later | 90% of your Total Corpus | Only Once in your Total Service |
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.epfochennai.tn.nic.in/forms_download.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.
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
Hi,
ReplyDeleteI have completed 8 yrs in my company. I require some money as my spouse is pursuing her MBA. Can i withdraw some money for this reason.
Yogi
@ Anonymous
ReplyDeleteI think you can try because most options that are available for self apply for the spouse as well.
But, I am not 100% sure. You can check with the regional PF office.
Best of luck
Hi, I worked for company X for 6 yrs & Now i have changed company to Y. I want to withdraw my PF from company X & dont want to transfer. Is there any option to withdraw?
ReplyDelete@ Anonymous
ReplyDeleteIf you havent transferred the PF Account to your "Y" company and if company "X" agrees then - Yes
usually PF can be withdrawn anytime when you leave a company, if you wont be working/joining another company immediately. However, most company's give you a PF withdrawal form at the time when your relieving formalities are completed. Money will reach you in around 3-4 months.
Now that you are already working in Y company, it is up to company X if they agree to give you the PF withdrawal form. Check with them.
Hi Anand,
ReplyDeleteRequest your advice on this.
I have worked for company "A" for 4 years and later joined the company "B" and working for past 2 years. When i quite my first company i withdrew all my PF balance. So , a new account is created for me in the new company . Therefore, would like to know if I will be eligible for withdrawing my PF account balance for buying a property ?
Thanks in advance :)
@ Nirmal
ReplyDeleteNo. I dont think so. Since you took out your PF money when you left your first job, and got a new one in the second, your PF account is effectively only a year or so old. So, you wont be able to take money out.
Hi Anand,
ReplyDeleteI worked for 33 months for a company and then opted for Leave without pay for my higher studies .
Now being an employee of the same company (I havnt left the job) and havn't completed 4 or 5 yrs , how can I take out money from my PF account.
Is there any loop hole which I can explore to get that money ASAP .
Thanks in advance
Regards,
Anuzz
@ Anuzzzz
ReplyDeleteWithdrawals can be made only if contributions were made into the PF account for 5 full years. Since you took a break, you need to spend that much time to reach your 5 year requirement. Unfortunately, there are no loop holes.
Thanks Anand, Your information are very much useful for understanding of typical gov. rule. I have total 9+ yr of experience in one of company. I want to withdraw my PF amt for purchasing a flat in NCR with the joint name of my mother. But as per my company, withdrawal of PF amt is not possible for joint name other than spouse. Is it true? Please confirm.
ReplyDelete@ Sachin
ReplyDeleteI could not find 100% proof that a joint purchase with the mother is allowed or not.
I think your office is right. In most cases, if a joint purchase is tried, people prefer the applicants to be spouses/couples. This is to minimize conflict of interest and problems in future.
pls tell me what is the procedure eof online withdrawl
ReplyDeletes. n. lawhate
a,nagar
@ Sadanand
ReplyDeleteThere is no such thing called as Online withdrawal of the EPF. To do the withdrawal, you need to make a manual request only.
Anand
HI ANAND
ReplyDeleteTHE INFO IS REALLY VERY USEFUL FOR ME,I WANT TO KNOW THAT I AM PAYING MY EDUCATION LOAN TAKEN IN 2007-09
FROM CANARA BANK,AND WANT TO FINISH IT OFF ASAP.
CAN I WITHDRAW MONEY FROM MY PF ACCOUNT FOR THIS PURPOSE.
@ Arbab
ReplyDeleteNo. You cannot withdraw money from your PF for repaying education loan.
i have changed my company after 2 years of association,and i dont want to transfer my current pf account to new company,what can i do in this case.....
ReplyDelete@Arbab
ReplyDeleteSure you can withdraw but remember that any withdrawals before completing full 5 years is fully taxable.
So, lets say your annual salary this year will be 5 lacs and you get Rs. 50,000/- Pf from your prev employer, then your net taxable salary for this year will be 5.5 lacs and you have to pay tax on the entire amount
dear anand
ReplyDeleteone more thing i want to know is
that prior to present company( read A) i had worked for another cmpny( read B) for a year and i had a pf account over there too.when i joined compny B i gave the pf no of A to be transferred to B but it has not been transferred,now i have 2 pf accounts ,,what should i do next,can i get my money from my previous account.
@ Arbab
ReplyDelete1. You need to chase with your first employer (A) to find out why they have not yet transferred the funds to your current (soon to be prev) employer "B".
2. If they are unable to give a status, atleast get the PF Account number and contact the nearest PF Office and raise a withdrawal request
3. Submit a written withdrawal request with Employer "B".
Remember that in either case, the age of the PF Account is less than 5 years and so, the withdrawal from both accounts is fully taxable.
anand
ReplyDeleteyes i have the PF no of cmpny A,and my both accounts are in mumbai since the HO of both cmpny A and B are there.
so how will i get my money from both accounts as i am employee of none,kindly tell the process.
Visit the regional PF office and submit a written request for withdrawal. They may ask for proof of holding account as well along with other documents like identity proof address proof etc
DeleteAnand
do i need to fill both form 19 an 10c
ReplyDeleteas both of them are to filled together.
one more thing what should mention as reason of withdrawing my PF as i am changing the job and dont wanna transfer my PF.
@ Arbab
ReplyDeleteSorry - I am not aware of the form numbers.
Reason - You need to check the list of options available in the reasons section and choose one. There must be something related to - you are going to take a break from work or something like that.
Note: The last time i put up a withdrawal request, it was through my employer when I resigned, so I am not sure of the process in the PF office
Anand
Hi Anand,
ReplyDeleteI have a PF account from previous employer, that I quit in May 2010. (2008-2010) PF accounts with my first employer, (2004-2006), and second employer(2006-2008) - were transferred to this last one.
I have not been working for last 2 years, and now want to withdraw this for my further education.
I have 0 salary to show for last financial year 2011-2012.
Can I withdraw full amount? Will it be taxable?
Yes you can withdraw it. Since the combined PF accounts together has been in existence for more than 5 years, it is not taxable.
DeleteSo, you can withdraw it and need not pay any taxes.
Anand
Thanks very much, Anand.
DeleteOne more clarification please.
I checked the PF balance online, it shows two components - EE and ER. EE is little bit more than ER.
Is it correct that total PF value is EE+ER. And I can withdraw it all?
I think EE is Employee contribution and ER is Employer Contribution. Yes, usually the employer contribution is slightly lesser than the employees contribution because the employer also contributes towards pension schemes.
DeleteYes - you can withdraw all of the amount. Both the EE and ER put together.
Thanks once again. Really appreciate your prompt replies.
DeleteWish people like you were working in govt offices.
HI ANAND,
ReplyDeleteI HAVE EPF ACCOUNT FOR LAST 2 AND HALF YEAR. NOW I RESIGNED FROM JOB.CAN I WITHDRAW MY PF ACCUMULATION
@ Anonymous
DeleteYes. You can withdraw your PF accumulation but remember that since your account is less than 5 years old, the full amount you withdraw will be considered as income and taxed accordingly. Ex: If your salary this year is 5 lakhs and you get 75000 from your PF account, your total taxable salary for this year will be 5.75 lakhs.
Anand
Hi Anand,
ReplyDeleteI wanted to buy one flat, but i am short of some down payment. I wanted to withdraw that money from my PF account.
So as per the requirement till now the flat is not in my name.
Is there any possibility of geeting money from my PF account??
Hi Anonymous,
DeleteIf the flat is being registered in your name by the builder then you will be able to take money from your PF account. If the flat is not in your name, then you cannot.
Note: In case of apartments/flats that are under construction, the moment the initial sale deed is signed by the builder and the buyer, technically the house belongs to the buyer on completion. So they can use that agreement for all loans including taking money from their respective PF Accounts.
Anand
Thanks Anand!!
DeleteOne more query please!!
Ok, so I can withdraw the some amount of money from my PF account only after initial agreement with the builder.
My another question is :
1. Will I be eligble again for withdrawing money from my PF account if I need later time for some other purpose.
Thanks
For some other purpose - YES. For building a house - NO. Each of the various categories under which you can withdraw money can be used as many times as allowed by policy. In case of "For buying a house" withdrawal is allowed only once in your lifetime, so, if you wanna buy a second house say after 15 years, you cannot utilize this facility. But, if you wanna use other option like for medical expense etc you can provided you havent exhausted the option there already.
DeleteMy PF amount is broken into two parts, one is my contribution 12% and the other is the companies contribution (13.61%). Are both these included under 80c as exempt from tax???? or is it only my component and the other component is not a part of taxation since the company is paying it for me to my PF account ??? Please answer this query for me ? I have 51,000 shown as my companies contribution and my contribution as 45800....do i need to deduct only my portion under 80c or even the companies contribution as well ?
ReplyDeleteonly 12% of your basic salary is eligible for deduction under Section 80C. You have not mentioned your basic salary here, but anyways I am assuming that the 12% you mentioned in the first line refers to 12% of your basic salary. In which case, yes only your contrib of 45800 is eligible for 80c tax benefits.
DeleteYou can learn more about Indian Income Tax laws in the article here - http://anandvijayakumar.blogspot.com/2010/04/income-tax-in-india.html
Anand
Hi, I have worked in the same company for 7 years. I want to withdraw the whole PF corpus to buy a plot ( will use the money as the down payment for the plot). Is it possible?
ReplyDeleteSiddie - Yes you can withdraw but not the whole corpus. See the row on "Buying a Plot" in the table for conditions you must meet and the amount you can withdraw.
DeleteAnand
Hi
ReplyDeleteI am 42 and am retiring and will not work further full time. Can I close all my PF Accounts? Currently I have 2 - one of previous job and another of current.
Also if I work as a freelancer, can I keep one PF account open out of the 2 mentioned and self contribute?
thanks!
Hi,
DeleteKeeping 2 PF Accounts is incorrect. First of all you must transfer your old pf acc (from your prev job) into this new account (with the current employer)
When you retire, your current active PF Account will be automatically closed and the proceeds will be paid out. No questions/formalities here.
PF Facility is only available if you are on someones payrolls (who pays you a fixed monthly salary). Self contribute is not possible in employee provident fund if you are not an employee of some organization.
However, you can select PPF and contribute as much as you want.
Anand
Hi Anand,
ReplyDeleteI am planning to buy a NEW flat and will be entering into an agreement with the seller shortly. As per the above, I can withdraw the PF for this purpose. In what form will the amount be given to me from the EPFO ? Will they issue an Account payee cheque in my name ?
Regards
Raghu
Raghu
DeleteI am an NRI and have never tried this partial withdrawal. So, am not sure. But, per my assumption it must either be (In order of probability):
1. Direct credit into your bank account
2. A/C Payee cheque
3. Demand Draft
Anand
Dear Anand,
ReplyDeleteI am working in a private company since last more than 2 years and now i am planning to do my masters from abroad so i would be giving my resignation in a week.
Please advice me how to withdraw my full PF (with Tax is not a issue) and what all documents i will need for the same and how much time approx. it takes to transfer in my saving account ?
I desperately need your advice.
Thanks,
Bhavesh
Withdrawing your PF if you are going to take up higher education is no problem at all. As part of your relieving formalities, check with your finance department and they should be able to give you the PF withdrawal form which they will file with the regional PF Office.
DeleteIf they wont do it, you can visit the nearest PF office and submit a written request for withdrawal citing the reason as higher studies.
About time - It takes around 90 days to be credited to your account
About documents - If doing through your office, then they will add all supporting docs. All you need to do is sign it. If you are doing yourself you will need proof of employment, proof of getting relieved, proof that you had a PF account (with the account number) and proof that you are taking up higher studies. They may also ask for identity, address proof and proof of bank account (a cancelled cheque)
Anand
Thank you very much sir , for this immediate reply and information.
DeleteThis is much needed info for me.
if you can tell how much tax percentage will be applicable on it ?
The money you get will be added to your annual
DeleteIncome for this financial year and taxed as per the prevailing tax slabs.
Anand
Hi Anand,
ReplyDeleteMy PF account is 10 year old. I have a home loan from a private bank(Axis bank). Would it be possible to withdraw money from PF to repay my home loan?
As per EPF web site, the loan should be from govt agencies or public sector banks to be eligible for PF withdrawal. Is that true?
Thanks in advance
Antony
Hi Antony,
DeleteCan you pls paste the link here that says the loan must be from public sector banks? As far as I know, you can withdraw from you pf account to repay your home loan taken from any bank.
Anand.
Anand, Thanks for the quick response
DeleteI got this info from the following link
http://www.citehr.com/58309-query-epf-loan-facility.html
Also please refer the withdrwal form from PF site(page-2)
http://www.epfindia.com/forms/FORMS_Latest/Form31.PDF
But its not very clear from both sites, whether we can use the withdrawal for replayment of home loans taken from private banks
Thanks
Antony
From the page - http://www.citehr.com/58309-query-epf-loan-facility.html
DeleteRepayment of outstanding principal / Int. of a loan obtained from State Govt, Regd Co-operative Society, State Housing Board, Nationalized Bank and Public Financial Institution.
I believe the private banks offer service to public and will come under the public financial institution category.
The PF Form just says body similar to and states a govt financial institution name. There is no way that they can refuse loan just because the epf holder took a housing loan from a private entity. So, dont worry. I am 99.99% sure that the loan for repayment of housing loan is applicable irrespective of any bank that you may have taken the loan from.
best wishes
Anand
Dear Anand,
ReplyDeleteThanks For you Information.
I have Submitte my Request to withdraw the money from my EPf account through form 31. And Also I checke my claim status in EPF Websit. in that website the have mentioned the received and status in in underprocecess.
My queistion is how long the time taken to received the amount?
@ Anonymous
DeleteIt usually takes around 75 to 90 days to get the money.
Thanks a lot anand.
DeleteIS ther Any possible to get within 45 days. Becaus In EPFindia.com shows each every claim will take only 30days.
Please confirm me.
As far as I know it takes around 2 to 3 months to actually get the money. 46 days is wishful thinking but may not be possible in reality. 75 to 90 days is practically possible
DeleteAnand
Dear Anand,
ReplyDeleteThanks for educating us.
I need your advice for my query.
I was working for @ 4.5 yrs in X company. @ 1year ago i left the company X and joined company Y. While joining the company Y opened new PF account. I didn`t withdraw or transfer[ to company Y] my pf contribution.
Recently i again rejoined company X. Our Hr dept. denied to continue my old pf account no. and they opened new one. So i have @ 3pf accounts at the same time.
I recently applied for withdraw my pf contributions from company Y and X [idle account].
Company Y submitted my claim to pf office & it is in process.
Company X is asking me to give affidavit on Non-employment for two months after resigning the service.Since there is declaration in pf withdrawl form. OR transfer amount to new/present account.
So is it right thing they are doing? What will be the format?
Also, is it practical, since when you resign from one company, you will not be idle for two months. Every one will join the next day to new company after relieving from old company.
kindly advice.
Hi,
DeleteSee the thing here is that, you cannot and should not be having 3 PF Accounts. First of all Y can never refuse to transfer your existing PF account from X. No company can refuse to move your PF Acc from your previous employer. Anyways past is past.
Visit the nearest employee provident fund office and explain them your current situation and ask about your options available. Try to either merge the 3 accounts into your newest PF account or ask them to close the other two.
Thanks
Anand
Dear Anand,
ReplyDeleteI wish to take a non refundable loan from the EPF A/C to purchase a flat
My question is that if this amount can be received in my name itself or can it be ONLY made in the name of person from whom the flat is being purchased?
Is there any way by which the payment is made to the EPF A/C holder (i.e. me)?
Regards
Sachin
Dear Anand
DeleteThanks for the reply. Let me clarify my question:
Lets say that the I am purchasing a house from Mr X and for this purpose I take a non refundable loan from the EPF A/C. My question is whether this payment - say through a cheque - will be made to me (i.e. Buyer) or directly to the seller (i.e. Mr X)
I am told that there is no way that the payment for purchase of a flat from my EPF A/C be made to myself. This is what I wanted to check
Thanks
Sachin
Yes, you heard right Sachin. My understanding is the same too. Payment is usually made to the seller (X) who is selling the property to you
DeleteHi Sachin
ReplyDeleteI think the cheque will be in favor of the person from whom you are buying the property to avoid misuse of the loan facility. You may cash the cheque but never buy a house right?
I don't think getting payment in the pf acc holder name is possible
Anand
Dear Anand
DeleteThanks for the useful reply !
Please tell me if you know of any way by which the payment can be made in my A/C name. I have borrowed some money for purchasing the flat and want to repay the same
Regards
Sachin
Sachin - sorry am not aware of any such procedures to get it done. Pls check with the pf office to see if they can help but I seriously doubt the chances of that
DeleteHello,
ReplyDeletei have worked in a company in 2005 which is now closed. my EPF was deducted for 1 and half years, now there is nobody who can tell me my monthly amount deposited and sign the form, pls guide how can i withdraw that money?
Thanks
Hi Dinesh,
DeleteDo you know your PF Account number? If so the process is easy. Just visit your nearest EPF Office and provide them with the details and submit a request for withdrawal of the funds.
However, if you dont know the same, the process may be tedious. You need to first contact the nearest EPF office to find out details reg. your account and then submit the withdrawal request.
This is not impossible but will require a lot of time and followup.
Best wishes
Anand
Hello,
ReplyDeleteI had worked in Noida(Delhi NCR) since April 2008 to April 2009. Now I am in Pune and I want to take out my PF amount from previous company. After passing three years May I remove my PF amount from previous company? My PF number starts from AP/HY
For remove my PF amount I will have to go to Delhi or I can take out from Pune PF Office.
Please suggest.
Kind Regards,
Shahid
Hi Shahid,
DeleteI think you should be able to get it done in the Pune PF office because the PF offices are connected throughout the country. But, I am not 100% sure of this. You may wanna check with the PF office in Pune if they will be able help you or not.
Thanks
Anand
Thank you very much for giving right suggestion. Could you assist me where is PF Office in Pune?
DeleteTry EPF India's website...
Deletehttp://www.epfindia.com/epfo_directory_mhch.htm
Hi Anand,
ReplyDeleteI am resigning from my employer of the past 5.5 years at the end of this month. i want to withdraw my entire PF amount. my employer says that it is not possible to withdraw, but i can only transfer to my new employer. is this correct?
awaiting your reply,
Sridhar
Hi Sridhar,
DeleteTechnically - your employer is correct. If you are switching jobs, PF can only be transferred. PF can be withdrawn in full only at retirement or when you are going to take a break from employment for atleast 3 months.
Usually when we shift jobs, company's ignore the fact that you will be taking up another job immediately and accept the PF withdrawal request. In your case your employer is not ready to ignore the fact. In this case the only option left for you is to convince your current employer that you will be taking a break from work for a few months and that he should process your withdrawal request.
It is not impossible, almost every company in India does helps its employees withdraw PF when they leave the organization but, it is not mandatory that he accepts your withdrawal request.
Hope this helps
Best wishes
Anand
hi anand
ReplyDeletei m working in x ltd in contract basis for 1 year n later i left the job after one year so wt could i do for withdraw the pf amt
Tanha,
DeleteIn India, usually when people are employed on a contract basis, they do not get PF or other employment benefits because technically they are not employees. However, if your company did offer PF and you have a PF account number, then by all means Yes you can withdraw the money
Anand
Anandji,
ReplyDeleteHow to transfer PF amount from my previous employer, where the company has closed?
Regards,
Spinner
Spinner,
DeleteI am not really sure. Technically the PF money is kept by the government of india in their EPF department. So, if your ex employer deposited that PF with the EPF department, your money is still with the Government of India. But, how to get it is a question that I am not too sure of.
Firstly check with your current employers finance department and see if they have any suggestions. Else, visit your regional EPF office nearest to your city and check with them.
Dont forget to take your EPF Account number or details of your ex (now closed) employer along with you.
Thanks
Anand
Hi Anand,
ReplyDeleteYou have done excellent job in answering our queries.
I have worked for Company 'A' for 12 years and Joined Company 'B". Now I want to withdraw PF from Company 'A" PF trust.
Will Company 'A' reject my PF withdrawal request since I joined another company?
There is no option saying for personal reasons, I am withdrawing PF amount.
I need this amount to buy a property.
Br
Prasad
Since you are already working, the company is not legally bound to take up your withdrawal request and yes they may reject your request. If you are in good terms with your ex employer you can try but there is no guarantee.
DeleteUnfortunately PF can be withdrawn in full only at retirement or when you quit a job and wouldnt be taking up a new job for the next 3 months.
Nonetheless, since you need the money for buying a property, you can do a partial withdrawal. Check the requirements and rules and submit a partial withdrawal request
Best wishes
Anand
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..
ReplyDeleteReply....
Try this article - http://anandvijayakumar.blogspot.sg/2011/07/breaking-news-for-employee-provident.html
DeleteMy name is Rahul. Thanks for all your posts. I have a question for you on the tax benefits of withdrawal of PF account. You said one must complete five years of service to avail tax benefits on PF withdrawal. But I have my PF account active for five years while working for two companies. Will I get tax benefit if I plan to withdraw my PF money now on an account which was active for five years but from two companies.
ReplyDeleteRahul,
DeleteIf the account from your company 1 was transferred over to company 2 and continued for 5 years put together then you can get tax benefits.
Anand
Hi Anand,
ReplyDeleteI worked in my previous company for 7 years but I have two PF accounts in the same company as I went onsite and when I came back from OnSite they created new account for me.
First account is 7 year old i.e. created in May 2005 and continued till July 2008 and new one was created in Jan 2011 to till date.
Can I withdraw money from both the accounts now?
Thanks for your help in advance.
|Kumar G|
Hi Kumar,
DeleteFirst of all, having 2 PF accounts (even if we switch jobs) is wrong. The existing account must either be closed (if you want to open a new account) or transferred. In your case since both accounts are from the same employer, talk to your finance department about aggregating the account.
second - unless the account is active continuously (monthly contributions made) partial withdrawal will not be allowed. In your case the first account was active for 3 years and then for 3 years there was no contribution and a new account was opened last year. So, technically neither of your PF Accounts has been active for 5 years. If you combine both accounts, you will come to around 4.5 years and in 2013 your combined account will cross 5 years and you will be eligible for partial withdrawal
Please note - if the accounts are not formally merged, then you need to wait till 2016 to withdraw from your current PF Account. the 3 years in between where you were not in India will not be considered as PF duration.
Anand
Hi Anand
ReplyDeleteI have 2 queries on regards to PF withdrawal
1 Is there a provision for withdrawing PF to repay the housing loan already taken I had taken a loan in 2009 and had submitted a request to EPF for a partial withdrawal in 2012 after completing 5 years with the employe EPF office however they returned my claim saying it cannot be availed for an already existing loan
2 Since last year I m out of India on leave of absence from the same employer no salary gets deposited in my India account but technically I m still an employee of Indian employer The status of my assignment is fixed term contract for 2 years Can I withdraw money from my PF account if I will continue to be out of India for this 2 year duration
Thank
Unless PF is contributed to your account every month, it will not be considered active employment duration from the PF perspective. So, if for the past 2 years no money was deposited into your PF account, those 2 years will not be added to your PF years.
DeleteSecond - I am not too sure about withdrawal for an existing loan. technically it must be allowed because after all it is your property but there must be some problem in your application, as a result of which I believe they rejected it. Pls talk and find out the reason. Also, check if the property is in your name only to ensure you are eligible for the claim
Anand
Dear Anand,
ReplyDeleteI changed my job 3 months ago. My previous employer has its own EPF trust and all my PF money was deposited there. A couple of weeks ago, before I could apply for PF transfer, my previous employer has transferred all my PF money to my bank account. Now I have my entire PF money in my bank account. I can always ask my current employer to deposit this amount in their PF trust. But I have an idea of investing this money partially in PPF and partially in Gold. Could you please tell me if this is a wise option? Also, please tell me if there is any chance that EPFO, Govt. of India can question me sometime in future for not having any balance in the EPF account.
Both Gold and PPF are good investment options. Why dont you consider Equities as well?
DeleteAnd - Once your PF is withdrawn,the government cant ask you any questions. When you switch jobs it is not mandatory to transfer your PF. you can choose to withdraw as well.
Mahesh
Mahesh, Thanks for clarifying!
DeleteHi Anand,
ReplyDeleteI have am working in a company for the last 8.5 yrs and have contributed towards PF ever since.
Due to some unavoidable reasons I have to leave my home and live on rent. My question is can I withdraw from my PF account for paying the deposit/rent?
I have no other options available as of now. Please advise.
No. Withdrawals for rented house is not allowed from your epf.
DeleteAnand
Hi Anand
ReplyDeleteI worked in a company for 2 years and now resigning for higher studies.
I want to withdraw my EPF amount.
Will it be taxable?
Thanks in advance
Uday
Yes it will be taxable
DeleteHi Anand
ReplyDeleteOne of our company's driver wants to withdraw amount from PF for repair of his house. He constructed his house only an year ago? Can he withdraw it? He has been in service from past 7 year
Yes, he can withdraw but the amount he can get is limited to 12 times his monthly salary provided he fully or jointly owns the house he wants to repair. This will come under alteration/maintenance of the house.
DeleteAnand
Hi Anand,
ReplyDeleteThanks for the valuable information. I have been associated with my current organization from last 32 months. I have completed a total of 5.8 years of services. Am I elligible to withdraw the PF for my sibling's marriage ?
Regards,
Deepak
Hi Deepak,
DeleteNo. You must have completed 7 years of service to be eligible. Since you have completed only 5.8 your withdrawal request will be declined.
Sorry.
Anand
Hi Anand,
DeleteI left company 10 years before, I have last PF slip from year 2005-06 from that company. now I want to withdraw my pf ammount. Can I withdraw my PF without visiting company?
Thanx
Parag
Hi Parag,
DeleteYes, you can withdraw without visiting the company. Visit your nearby PF office with proof of leaving that particular job, proof of holding a PF Account (Including the number) and other proof's like id proof, address proof, bank account cheque etc. They will have some forms that you can fill-up and raise the withdrawal request.
Try it out. Best wishes
Anand
Aplogies for asking similar questions. Wanted to check if Construction Agreement is enough to apply for withdrawl in case of under construction house/flat or do I need to first register the property and then only I can claim for withdrawl?
ReplyDeleteI am not too sure about that. I could get a construction agreement, withdraw cash and then cancel the agreement right?
DeleteSo - maybe the PF office will ask for proof of registration so that they will know that you are withdrawing the funds for the intended purpose.
Anand
How much time does it take to credit the amount from PF account ..???
ReplyDeleteTarun
DeletePer my knowledge all withdrawal requests must be completed within 30 days (1 month) but, It may take up to 90 days (3 months) to get the money.
Anand
Anand
ReplyDeleteI have served 8 years in my current company. I would like to withdraw some amount from my PF for my siblings wedding.
I can clearly see the document required for it, but can you advise what is the duration for the amount to be credited, from the time applied and what is the maximum amount I can avail.
Vishal
You can withdraw upto 50% of your accumulated corpus
DeleteUsually it takes around 2-3 months for the money to be credited to your account.
Anand
Hello anand,
ReplyDeletethank you very for your information,
i want to know about "Gratuity money"
Hi Sarathi,
Deletegratuity is a lumpsum money you get paid if you spend more than 5 years with the company. Typically it is half a month of your salary * no. of years of service
For instance, if your average monthly salary is Rs 50,000, the gratuity payable to you after 10 years of service would be Rs 290,000. However your employer factors in another term: 'uninterrupted service'. The term covers the service period of the employee including leaves or breaks, except periods notified as breaks in service by the employer.
For employees who do not fall under the Gratuity Act, the amount due for them is half of the average ten months' salary multiplied by the number of years of service
Anand
I am 55 yrs old. My retirement age is 60. I want to withdraw the full epf amount(both employer and employee).
ReplyDeleteIs it possible. If so,what is the formality.
Hello Sir,
DeleteThere is no specific formality. When you retire, your company will automatically submit a request to the regional PF office for withdrawing your entire pf corpus (both employer and employee contributions) which will be paid out to you within 6 to 10 weeks.
If your employer does not complete the formalities, you can visit the regional PF office with proof of employment, PF Account number, proof of retirement and your identity, address and bank proof's and submit a written withdrawal request. The timelines will be the same as above.
Happy Retirement sir
Regards
Anand
Hello Anand, I will soon be changing my job and I have the option of withdrawing the PF from my current organization. So my questions is,
ReplyDelete1) Can I do Partial Withdrawal into bank account and transfer some amount to my new organization PPF account?
2) Is the partial amount taxable?
I have total 15 years of service in India with break up as below.
1) 3 Years from 1993 to 1996 - PF transferred to Next org
2) 9 Years from 1996 to 2005 - PF not transferred due to some issues with the company
3) 3 Years from 2009 to 2012 - PF which I want to partially withdraw
Thanks
Prasad Sheth
Prasad,
DeleteFirstly there is no partial withdrawal allowed during job shifts. You either withdraw in full or transfer the amount in full to the new employer and then submit a withdrawal request for some genuine reason as outlined in the article.
What happened in the time duration between 2005 and 2009? did you have a PF Account? If not, the current PF account is only 3 years old (Started in 2009), so whatever is accumulated in the account, you can withdraw but it is fully taxable.
Note: If the account is not transferred from one employer to other and a new account is started, the old PF account years of service will not be considered by the PF Department. So, for them your PF Account is only 3 years old and so as per tax regulations, withdrawal proceeds are fully taxable.
Hope this helps.
Anand
Thanks Anand. I was working outside India for that period. So did not had PF account.
DeleteCan I withdraw PF Money from my previous company I worked for 9 Years now? Would that attract any tax?
I dont think it will attract any tax as you have completed the mandatory 5 year holding period.
DeleteThanks Anand. Actually I left that company in 2005 and now I want to withdraw the money from that PF trust. Can they reject my application now? What are my alternates to withdraw my PF from them?
DeleteRegards
Prasad Sheth
No, they cannot reject your claim. It is your money and they cannot refuse to give it back. However, if they are uncooperative, you can contact the regional PF office. Check out the last section of this article that I just updated a few days ago.
DeleteAnand
Hi,
ReplyDeleteHow do i apply for PF withdrawal for purchasing a flat ?? I have been in the same job for 7 years now.
Abhinav - The forms for withdrawal are usually found in the regional PF Office or with employers. Check with your office finance department to see if they have the forms. If not, visit your nearest PF office to get it.
DeleteThey may ask for - Address proof, identity proof, bank details, proof of holding a PF account, employment proof etc. Plus the process will take a few weeks. So, plan accordingly.
Best Wishes
Anand
Hey Anand,
ReplyDeleteYou seem to be the ultimate word on PF related matters:-)
can you please guide me? i worked in a school for five months wherein PF was deducted from my monthly salary.I was told that i could not transfer/withdraw the same as I had worked for less than six months.Is this correct?
Hi Aditi,
DeleteActually No. He is not right. There are two components in every PF Account - A PF component and a Pension component.
The Rules are:
If anyone worked with the company for more than 6 months then they can withdraw PF (with form 19) and pension (with form 10c).
If anyone worked for less than 6 months then they are not eligible to withdraw your pension amount but they can submit form 19 for PF withdrawal.
Technically - It is your money and your old employer has no reason/right to stop you from getting it. You can either get it transferred to your new employer or get it withdrawn.
Note: You can submit the above forms to your recent employer (with whom you had the PF Account) or if your employer no more exists, then you can submit above form directly to PF office by getting it attested from any government officer.
Anand
Upto 36 times your Monthly Salary for purchase of FLat, is only basic of monthly salary or net salary????
ReplyDeletePer my understanding it is full salary only
DeleteHi Anand,
ReplyDeleteI have a EPF account in my previous company. I worked there three years. Two years back I resigned from that company. I have only one EPF slip with me. I don't have any other documents.
How can I apply for my EPF amount? ID proof is enough? What are the proof needed?
Thanks
Ranjee
Check out the last part of this article that I just added a few days ago. You need address proof, identity proof etc. Check it out.
DeleteAnand
Hi Anand,
ReplyDeleteFirstly, thank you for having set this site up for people like us. My question to you is "I have been working for an Organization for the last 12 years since 1999. Until 2007 the EPF that was deducted from our salaries was being credited into the EPF a/c's and the PF slips were handed out. Since 2007 they stopped giving PF slips to the employees but were quite convincing while committing to the employees about the EPF amount deducted from salary being credited to their EPF a/c's. Now i plan to leave this organization and when i confronted the HR dept they said that the PF deducted from my salaries have been credited to the EPF a/c only until February 2010. They still have not given me the PF slips until Feb 2010 to validate what they say. Is this not a gross irregularity on the part of the Organization? I need your expert advice on the what i should be doing in such a case and what the options are.
Hi Pramod,
DeleteJust because you did not get the PF slip it may not mean that your company did not credit your EPF money into your account. It is criminal offense for an employer to not remit the PF proceeds into his/her employee's PF accounts every month.
You have to do the following:
1. Ask why PF Was not credited into your account after Feb 2010? I believe you have been working for them even after feb 2010. Isnt it?
2. Ask them for a consolidated statement of your PF payments. Alternately, take your PF slips to the regional PF office and request for a statement. This will help you figure out if they have indeed made the payments against your account.
If they havent made payments (when they should have) talk to a lawyer who specializes in Labor laws in India and take things forward.
EPF is your rightful entitlement and you have all the rights to claim it from your employer.
Best wishes
Anand
Thanks Anand. I will do as suggested and hope thins work in my favor. Thanks once again.
DeletePramod
Hi Anand,
ReplyDeleteI have completed 4 years in the current company. Can I Withdraw Money from My Employee Provident Fund (EPF) Account for medical treatment (Pregnancy)? Please suggest.
Thanks.
Sonali.
Hi Sonali,
DeleteYes, I think you can. But, if you have been employed only for 4 years, the amount in your corpus may not be that much and hence it would be a better option if you try to arrange funds elsewhere.
Nonetheless, if you want, you can give it a try.
Best of luck
Anand
Sir how much time will it take if i withdraw some amount of money from my PF?
ReplyDeleteDebashish usually it should be completed within 4 weeks but it may take up to 8 or even 12 weeks.
DeleteFirstly, thank you for having set this site up for people like us. There is lot of information availble in this site and it was very helpful.
ReplyDeletehow can u withdraw EPF from a lockout plant?
ReplyDeleteAbhishek,
DeleteUsually the PF money collected by companies is deposited with the EPF office in India. So, even if the company you worked for is locked out, you can contact the regional PF office with details like your PF account number, employment history/proof etc and then submit a withdrawal request.
In cases where the company itself maintains its PF funds (which is very rare excepting a few very large and reputable organizations in India) if the company is locked out, the EPF office cant help much.
Anand
Hi Anand,
ReplyDeleteI have completed 5.5 years in the current company. Can I Withdraw Money from My Employee Provident Fund (EPF) Account for buying land? I am planning to withdraw from PF to make down payment for the same. As the land is not yet in my name, how to proceed now?
Do i have to payback the PF if withdrawn?
If the PF amount which i can withdraw is lesser than the required, is there any provision to take loan for the required? If so is there any limitations on it? what are the conditions for the same?
Please suggest.
Thanks inadvance.
Hi Bahubali,
DeleteAs you have completed 5.5 years, you are eligible for the loan, however the upper limit is the amount of money that is accumulated in your corpus or 36 times your salary whichever is higher. Yes, for buying land you can get the money provided you can submit proof that you are indeed buying land and the payment is usually made in favor of the person who is selling the land and not your name.
No, you need not pay it back. It is a withdrawal and not a loan.
Loans can be taken only against the money you already have in your account. If you withdraw the funds, your account technically will be empty (since you've been working only for 5.5 years) and so, you wont get any loans as such.
Going for bank loans would be a feasible option.
Regards
Anand
I want to purchase a flat will they pay the money to my saving account or they directly pay to the builder from my PF account I am using Non refundable withdrawal
ReplyDeleteAnonymous,
DeleteCheck out my response to other comments similar to yours. The payments are usually made towards the builder (as a cheque) to prevent misuse of withdrawn funds.
Anand
Hi,
ReplyDeleteI quit my last company 1.5 years ago, working freelance so no PF and didn't join any other company. Last PF amount is still sitting there. How long can I keep that inactive account and my PF amount there ? How much time do I have to move that (withdraw / transfer) ? Thanks in Advance ....
Himanshu
Hi Himanshu - any PF Account that is inactive for a period of 3 years (No fresh deposits every month) stops earning interest. So, after 1.5 years your PF Account will stop earning interest. However, it is not mandatory to keep this account open. Technically anyone who resigns from a job and will not be employed again for a period of at least 90 days can close their PF Account and withdraw the proceeds.
DeleteSo, you can opt to wait for some more time or withdraw the corpus now.
Anand
my age is 56 years old n i have 4 more years to retire as i am working for 28 years and i have some bad debt to pay and i have my daughter marriage schedule for may. I have read that i can get 90% as i am 56 as against 54 in PRE RETIREMENT.
ReplyDeletewhat is the procedure and what time it takes to settle
Sorry Mr. Anonymous, I am not much aware about the pre-retirement concept. I will try to search and see if I can answer this question.
DeleteAnand
Hi there, Lets say I have completed only 2 year service. The Total corpus is 1.5 lakh. I intend to withdraw Rs.80,000 which is my 6 months Basic Salary. I understand that there are restrictions if the withdrawal if for MEDICAL PURPOSE. My query is w.r.t TAXATION if withdrawal is made for medical purposes. Do I lose previous tax benefits. Also, is the withdrawal repayable or non repayable for medical purpose.
ReplyDeleteHi,
DeleteWithdrawals from PF are not taxable and nor do we lose our tax benefits availed in the past years.
Anand
HIMANSHU SIR I HAVE A QUESTION I WORKED IN A COMPANY FOR ONE YEAR THAN I ABSCONDED AND DID NOT SERVE NOTICE PERIOD OF TWO MONTHS AND NOW AFTER 3 YEARS I GOT GOVERMENT JOB NOW I WANT TO WITHDRAW THAT PF AMOUNT .CAN I WITHDRAW IT AS I DID NOT SERVE NOTICE PERIOD OF TWO MONTH IN THAT COMPANY AND COST OF THAT PERIOD IS MORE THAN THE PF MONEY OR CAN I TRANSFER THAT PF IN MY NEW ACCOUNT WHICH I WILL GET AS A IM A PART OF RAILWAY NOW.
ReplyDeleteAnonymous,
DeleteSince you did not serve your notice period your old company may not cooperate with you. You need their signature and attestation to get the money. You can checkout the article titled Can I transfer my PF Account to my new Employer? to learn about how to either get the money or transfer it to your new company.
Regards
Anand
Hi Anand,
ReplyDeleteI need your suggestion to withdarw PF from my previous employers. I joined my first company in march 2009 and left in Dec 2010, but I haven't taken out my PF and haven't tranferred also, then I joined second company in Dec 2010 and left in sept 2012, now I am going to withdraw these PF accounts.
My questions are...
Can I withdraw PF from my first employer after 3 years?
What I need to do to withdraw this PF from First employer?
Is there any penalty for this delay in withdraw?
Can I get 100% PF amount in above case?
Regards,
Mahesh Patil
Hi Mahesh,
DeleteAnswers below:
1. Yes, you can get the 100% PF Amount
2. You can withdraw after any number of years
3. There is no penalty for delayed withdrawal however it may cause delays but as far as I know, there are no fines/penalties for the same
4. Go to the nearest PF Office and fillup the forms and submit a request (A link to the website from where you can download the forms is already present in this article.
Anand
Thanks Anand for your reply.
DeleteHi Anand,
ReplyDeleteI have purchased a land 2 months back. I want to withdraw PF amount and pay back the debt which I got from my friends / relatives. Kindly let me know the procedure in this case
Regards,
SarathChandran
Sarath,
DeleteUsually payment in such cases is made out to the organization/person selling the land or loan. In this case since you got money from friends/relatives, I am not sure how the PF department will accept your request.
I think the better option for you would be to go for a personal loan and repay your friends/family.
Regards
Anand
Thanks for sharing.... very useful info..
ReplyDeletedear sir,
ReplyDeleteI claimed my pf around four years back. After three month I got a cheque it was from pf department. Cheque was bounced due to signature was not matching. I returned that cheque to my privious employer to deposit in pf office. Till that time I am waiting for my PF amount. What should I do. In epf portal I am not getting any data releted to my account. Please help.
Mukteshwar Singh
Delhi
Mukteshwar,
DeleteYou have two options - Contact your previous employer or visit the nearest PF office in your region and register a formal complaint.
Usually such cheques do not bounce and I believe in this case it could've been due to a mismatch in your signature. Always opt for ECS where PF office directly credits the funds to your bank account.
Submit a cheque from your bank and make things easier for everyone.
Regards
Anand
Hi
ReplyDeleteI have joined in X company from 2006 to 2008, then joined Y company from 2009 to 2011. I have not transfered pf accounts for both companies X and Y. Now I joined in Z company in 2012. Can I transfer both pf accounts of X and Y, with the current employer Z pf account.
Regards
Barani
Yes Barani - you can.
DeleteAnand
Hi
DeleteVery Thanks. I thought, I can transfer only the pf account of the previous employer Y to current employer Z. I forget to add in previous mail. Will the current employer Z, to whom i am working now, can help to transfer the pf account of employer X to pf account of employer Z. If the current employer not interested to do the transfer of X to Z, then how to proceed to make transfer.
Regards
Barani
Hi,
DeleteThe current employer cannot refuse to transfer but without his cooperation you cannot get the PF transferred because you will need his signature and seal to get the money transferred.
So talk to them and ask them to cooperate.
Anand
Hi
DeleteVery Thanks. Just I am having one more doubt to clarify. Is there any possiblities, can I request previous employer Y, to transfer inactive pf account of employer X to inactive pf account of employer Y.
And then, transfer pf account of employer Y to pf account of employer Z.
Thanks in Advance
Barani
Barani,
DeleteAs you dont work for Y any more, they may not help you with this. But, you can check with them.
Alternately check with your current employer and submit two transfer requests if that is possible. This is a very peculiar case and unfortunately am not really sure of this situation or its solution.
I will check around and if I find anything, will reply to this comment...
Thanks
Anand
Hi Anand, I want to withdraw advance/part of my PF for home loan repayment. I have completed 7 years of work. Please let me know
ReplyDelete1) What are the options which i can use to withdraw the money(as in the table above its showing must have completed 10 years for repayment of home loan).
2) How much money i can withdraw if my current salary is approx 1L per month.
3) According to the table above i may get 36 times of the monthly salary, so will there be any interest charged on it, if yes, how much?
4) Can i apply for the advance of PF online?
5) What is the exact process for it and documents required for it.
Sorry if i am bothering you, but really in urgent need of money. Thanking you in advance.
Hi Anonymous,
DeleteAnswers below:
1. You will not be able to get the money because you have not completed 10 years of service. You will have to wait 3 more years to withdraw the money under this option of housing loan repayment
2. As your salary is currently 1L per month, I dont think your PF corpus will have enough funds for the 36 times clause. In such cases the amount is capped at the amount of money in your account.
3. There will be no interest as it is a withdrawal and not a loan
4. I dont think so. It would be a proper paper based process per my understanding
5. Check with your nearest PF office. There is a link at the end of this article that points you to the online site where you can download the forms. You can use it and then submit your request at your nearest PF Office.
Note: Most large companys have a finance department that will help its employees do such withdrawals. You may check with your finance department to check if they can help you.
Best Wishes
Anand
Hello Anand, I have completed almost 2 years in my current job, and i have home loan and i want to repayment asap because of higher interest every month i am paying, Can i withdrawn my money from EPF.
ReplyDeletePawan,
DeleteNo. You cannot withdraw money from your EPF. Even if we assume you contribute 10,000 every month, the amount in your PF may not cross 2.5 lakhs as you have been working only for 2 years and I assume your home loan will be much higher...
Withdrawal is allowed if you meet the eligibility criteria (10 years of service for home loan repayment) or when you switch jobs. In case of switching jobs the withdrawal is fully taxable if you have not completed 5 years of service in the current job. So, approx 30% of the withdrawn money will be deducted as taxes even if you switch jobs now and apply for a withdrawal...
Anand
Hi Anand -
ReplyDeleteI have been working in this present company for 6 years (total of 9 yrs of exp), if i wanted to with draw my pf how much i can, as i purchased the house so to pay for that i am looking to withdraw. i would like to know whether i can with draw 100% or not. If not how much i can with draw. Please help me. Thanks!!!
Mohan,
DeleteIf you transferred your old PF acc to your current job where you have spent 6 years, then you need to wait one more year and then you can apply for the withdrawal. The amount will be 36 times your salary or the amount in your corpus whichever is lower.
Note: If you did not transfer your PF when you switched to this job 6 years ago, you have to wait 4 more years before you can take the money.
Anand
Hi Anand,
ReplyDeleteHow can one know the current balance in one's EPF account if when checked online is found in-operative? Would the EPF office that one has the account in, help? If they do then how forthcoming would they be to help?
Thanks,
Pramod
Yes, the EPF office where the account is being maintained will be able to help you. As with any government office, they may be a little slow, but if you persist, they will share the info with you
DeleteRemember to carry all necessary details like your identity proof, PF account number, address proof, any proof that amount was credited into the account etc.
Anand
Thanks Anand and wish you a great 2013. The only proof(s)of the amount being credited to the account, i believe are a) the challans for PF submission and b) the PF slips that the organization generally hands out to its employees. I have neither and that's the reason i need my statement from the EPF office to counter check the organization's claims. I have the earlier PF slips and the other documents that you mentioned. Is there a problem in going to the EPF office without a proof showing the credit into my account? Or, would the other proof(s) be good enough?
DeleteThanks,
Pramod
Pramod
DeleteActually speaking as long as you know your PF Account number and can produce valid identity and address proof, the EPF office should help you. The reason why i suggested you take those additional documents is to prove that you indeed have a PF account and money was being deposited into it.
Take as much proof as you can and visit the EPF office and try it out :)
Best of luck and happy new year 2013 to you too...
Anand
Thanks Anand.
DeleteHi Anand,
DeleteOne question more. When you inquire about the EPF balance online you get back a message that gives you the EE Amt and an ER Amt. Is the total of these two amounts that you receive when you fully withdraw your PF? The ER Amt is lower than the EE amt. What's the significance of this and also where is the contribution to pension going?
Thanks,
Pramod
Pramod,
DeleteEE is the Employee component and ER is the Employer component and yes both can be withdrawn. Your net withdrawable balance is EE + ER numbers. Usually ER is slightly lesser than EE because a portion of the EPF component goes into pension funds as well.
The pension fund is something that depends on the organization you work for. Most organizations choose pension funds by LIC or other insurers but it varies...
Ask your employer for the same.
Anand
Hello sir,
ReplyDeletecan u plz tell me that if someone has worked in a company for 3 yrs and left the job and decided to withdraw the EPF amt after 2 yrs so that the cycle of 5 yrs will get completed.Hence in this case the withdrawn amt will be applicable for tax or tax free. kindly suggest.......
Thanks in advance
VIVEK
Hi Vivek,
DeleteNo, the withdrawal will not be taxable if you let the PF Account complete 5 years of existence.
Anand
Hi Anand,
ReplyDeleteI have completed 6 years in my company and i had help my parents for my brother's marriage, so i have partially withdrawn the pf amount and i have submitted the invitation proof as well and now suddenly i get a message from pf office saying my request is rejected and its dispatched ...I do not know what is the reason as well and i have spent the money on marriage. Do i have to repay the money to the pf guys again? i am really confused on this, can you help me?
Firstly - A Withdrawal is different from a loan. So, I dont think you need to repay the money.
DeleteHowever, It could have been due to a clerical error - you got both a rejected and a dispatched notification. Wait for further communication form the regional pf office on the next steps. They will contact you definitely if there was any problem/confusion.
There is not much you or I can do here - except waiting.
Anand
Dear Anand,
ReplyDeleteI moved out of India in Oct 2012 and currently working abroad. I have accumulated EPF with my previous two employers in the past 11 years. When I joined my second company at India, I requested for PF transfer from my first company. Now, I would expect both my PFs to be under the same PF A/C number. But, I'm still noticing two different PF numbers in EPF website. Can I consider that the PF transfer didn't happen from my first employer yet? Now, if I want to withdraw my entire accomulated PF, will submitting the withdrawal form to my second employer is enough? OR should I individually contact my first employer to withdraw the PF accoumulated while I was with them? Is there a way to initiate the PF withdrawal on my own from abroad? Appreciate your inputs in this regard.
Hi Arun
DeleteYes, that would mean that your EPF Account did not get transferred and so you need to submit 2 different withdrawal requests.
Anand
Hi Anand,
ReplyDeleteI joined XYZ company 3.5 years back and resigned last month and joined another organization after a month's gap. Also my PF account was earlier in "A" location which was opened on my day of joining and which was shifted internally to "B" location 1.5 years back .
So if I go for withdrawal would my amount be taxable ?
Please advise
If you have exactly completed 60 months or more of total service & PF account, then it will not be taxable.
DeleteIf the dates mentioned above are approximations and here is still a few weeks/days till a full 5 year completion, I would suggest you wait till you actually & fully complete 5 years before submitting your withdrawal request.
Anand
Dear Anand,
ReplyDeleteI have resigned from ym company before completing 10 years and have relocated to another country. Can i withdraw my pf ?
Viren
Hi Viren - yes you can
DeleteHi Anand
ReplyDeleteI am going to complete 10 years in my current company this month and am planning to resign. Should I complete just 10 years and resign OR I should resign a week before completing 10 years ? I am planning to relocate outside India for permanent settlement and want to withdraw my EPF and EPS in full. Also please tell me about Gratuity, will I get that also while exiting ?
Thanks,
Ashish.
Hi Ashish,
DeleteEPS Benefits are applicable only if you complete 10 years of service but the money will be paid out after you retire only. So, as of now if you are planning to settle down outside india you will not get the money.
Gratuity too is paid out based on number of years of service and that differs from organization to organization. You need to check with your organization.
EPF will be paid to you anytime you want. As you have already completed 5 years the amount will not be taxed.
Anand
Thanks a lot Anand for the reply.
DeleteRegards
Ashish.
Hi Anand, I am working in the current organistation which is in Bangalore since Oct 2006, at the time when I joined my company this organisttion had maintianed their PF account at Gurgoan office then in Mid of 2011 they decided to move our PF accounts from Gurgaon to Krishnarajpuram in Bangalore so techncially we got new PF a/c numbers. So since I have a new PF a/c number since the last 1.5 years how will this be considered by PF office? will they consider this as only 1.5 years of contious contribution in PF account?
ReplyDeleteAlso, I am planning to buy a flat so will the intial sale agreement work on the stamp paper? or do they require a registered sale agreement? Also, if I completely buy the flat by arranging funds through alternative source and produce the final sale deed as the proof will I still be granted PF advance?
Usually when you move from one city to another, a new account is not required and the existing account itself can be transferred. So, if that had happened the system will consider your account as active since 2006 which makes it 6+ years old whereas if your company opened a new account and refunded the old PF corpus then the new account will be only 1.5 years old.
DeleteUsually PF advance is paid out to the builder and not to you. So, once you finish funding the house, you will not receive any payment from the PF Office
Anand
Hi Anand,
ReplyDeleteI have gone through your article and almost all of the comments.
But didnt see a solution for my issue.
I need to purchase a flat. i need to pay 20% of the total amount initially within 2 weeks time.
I thought i can manage this amount somehow from my friends and then apply for pf withdrawal to return their amount. but here the problem is if the pf amount goes to the builder directly , i cannot do that.
Do you have any solution for this ?
Binu
Hi Binu,
DeleteNo, there is no solution for this. Unfortunately, to avoid malpractice, the EPF Department gives the money in favor of the builder only and so, there is no workaround for it.
Anand
Hi Anand,
ReplyDeleteVery nice article and it is useful for many of us. I have a query. You have mentioned that to do home loan repayment, we should have completed 10 years of service. I have completed 6 years in a company, am I eligible for withdrawing the amount to do home loan repayment? Also what is the maximum amount I can withdraw?
Thanks
Regards,
Prasad
Hi Anonymous - You need to complete 10 years to be eligible for withdrawal to repay the home loan and you will get up to 36 times of your monthly salary.
DeleteSorry.
Anand
Hi Anand,
ReplyDeleteIt's great to have found out this blog... i am really hooked.
We are currently NRI for the last 3 years. Now, the issue is that my husband who worked for 15 years in the same company. My queries are
1. We can no longer stay invested in PF as the three years of company contribution are already over.
Is this true? We could still stay in the PF but would not get interest.
2. How do we handle this part if we would like to continue in the PF and also get interest in this PF account
3. If we could stay with the PF, could we only contribute from our end to keep the account live without the company contribution as my husband has been transferred outside india but with the same company?
3. If this is not possible, what is the best investment opportunity currently as my husband is 45 years and we would like to use this money for our retirement.
Your advise would really help us to save for our retirement:-)
Hi anonymous, answers below:
Delete1. No, this is not correct. You can still have your money in the PF Account. The account will be considered dormant and will not draw any interest. The principal you paid up to build the corpus will remain until you want to claim/withdraw it.
2. You cannot invest in PF if you are not earning an Income in India. EPF Scheme is only for resident indians who work in India and earn an income here. it is not for NRIs
3. N/A due to reason explained for Q no. 2
4. You need to come over once to India in order to submit a request for withdrawal. Once you do, your money should reach you in 4-8 weeks. Once you get it, you can formulate an investment portfolio based on your risk appetite.
Read this article - Investment Portfolio to learn more about how you ca create a portfolio. Once you finish reading it, you can decide the type of portfolio you want and start investing according to the advise provided in each of the types in the blog.
Thanks
Anand
Hi.
ReplyDeletei have taken some monay from my relative to buy the home in resale in DEC12 & also taken home loan from icici bank. now the property is transferred on my name & i want to withdraw my EPF to pay the loan taken from relative. i am working in current company since 9 year.
kindly suggest me how i can withdraw PF & what document will be require to submit.
Hi Ramesh
DeleteNo, you cannot take a loan on EPF to repay your relative. Also, you need to complete 10 years of service to take money for repayment of housing loan. Once you complete 10 years you can try to do so. In that case the money will be given as a cheque in favor of the bank where you have a housing loan.
Thanks
Anand
hello Anand,
ReplyDeleteyou have shared some very useful information here.
I have worked for a company for 2 yrs and i will be quiting the job and going abroad for higher studies...will I be able to withdraw any part of my PF and as I am quitting the job, will the withdrawn amount be still considered as taxable?
Also when should I submit the request for withdrawal (after quitting? to save taxes?), if I can withdraw in the first place?
Hi Ritz,
DeleteYes, the amount will be considered taxable. But, is it more than 2.5 lakhs? This amount will be clubbed to your annual income in India for tax purposes. Since, you are going abroad for studies, you will have very little to no income here. So, if you withdraw the money it will not be taxable. Even if TDS is deducted on your PF amount, you can file a nil-tax returns and get the money refunded.
Remember - this is only if the PF Amount is less than 2.5 lakhs. If the amount is more than that, it will be taxed according to the prevailing tax slabs.
You can wait for 3 more years to let the PF Account complete for 5 years and then withdraw the money without any tax implications because withdrawals after 5 years is exempt from taxation.
Anand