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 3. Hospitalization must be for a minimum period of 1 month or more | 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
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
DeleteVery informative article and greatly appreicate it.
ReplyDeleteI 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
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
DeleteClick 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
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 ?
ReplyDeleteAnonymous - 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.
DeleteAnand
Hi,
ReplyDeleteI 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?
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.
DeleteDear 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.
ReplyDeleteThanks,
Rini
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.
DeleteThe 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.
Hi Anand,
ReplyDeleteYour 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 ?
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.
DeleteHi Anand
ReplyDeleteSome problem related to withdraw EPF amount.My bank account joint with my wife . what possible to transfer EPF amount my joint account.
Hi Pawan - Sorry, your question is not clear. What is the problem you are facing?
DeleteI 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?
ReplyDeletePlease post it on punedhir@gmail.com .Thanks in advance.
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.
DeleteHi Anand,
ReplyDeleteThanks 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
Hi Harini, yes you can withdraw now and use it to pay a portion of your home loan once the money is received.
DeleteThese 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.
Hi Anand,
ReplyDeleteI 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
Ravi - No, there is no such rule. Even if you worked just 1 month you can get the money.
DeleteMy 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?
ReplyDeleteIf 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.
DeleteHi Anand!
ReplyDeleteThanks 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
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...
DeleteDear Anand -- Thanks a lot for your reply. Further i am planning to enter agreement for 2 months with brother-in-law to purchase his land and apply for PF withdrawl. My Queries--
ReplyDelete1. Is it possible to pay the PFamount directly to brother in law?
2. I understand folllwing documents required initially for withdrawing PF against purchase of site. Is it suffecient?
a) Copy of Agreement
b) Copy of Certificate issued by Sub-registrar/appropriate authority that site is free from encumbrances
c) Copy of Certificate issued by Advocate that site is free from encumbrances
d) Copy of Receipt from the registrar for having registered the agreement
3) When EPFO will ask site registration certificate?
Thanks -- Ravi.
Ravi - These days I believe the PF Office releases the funds to your bank account (subject to approval) and you are expected to pay the other party. Yes, the list of documents you mentioned are sufficient to prove the fact that you are buying property from a 3rd party. The purchase agreement effectively means that your purchase of the plot is over. I dont think you need to submit the registration certificate.
DeleteAre EE and ER of EPF part amount is seperate from EPS part amount which comes from Table D of PF list? And how much time it takes for EE n ER to get credited through NEFT after EPS credit? And if EPS gets credited through NEFT in bank account and if we receive any sms as your form 19 EPF is approved through cheque, will it then come in the form of cheque or it will be through NEFT in to bank account directly and if through cheque, then where will the cheque gets delivered? Home address or Employer address? Please confirm
ReplyDeleteSee answers:
Delete1. Yes, EE & ER Amount is separate from EPS Amount
2. All transactions take about 4-8 weeks from the date of approval of withdrawal request (both epf and eps)
3. If one got credited to your bank account, then the other will follow the same route too.
4. If the cheque route is taken, the delivery address would be based on what you filled up in the withdrawal form. Usually people fill home address during withdrawal because they may or may not be employed with that employer by the time the money comes.
Hi Anand,
ReplyDeletethis is praveen.
I hve submitted pf withdraw forms 19 and 10c.
In my PF pass book showing 28k under EPS section. i hve completed 4 years 5 months in my last company.
How much amout will i receive under this section.
Please help me on this.
EPS withdrawal does not happen based on amount accumulated but based on no. of years of service and last drawn basic salary. check this link for more details: http://anandvijayakumar.blogspot.com/2013/03/how-much-pension-will-i-get-through.html
DeleteHello Anand,
ReplyDeleteFrom this blog, I can get more or less every answer to my queries.
I need a Suggestion from you!
I was working for a MNC Company in India & sent abroad (their own Branch). Later I resigned from this Company & joined a new Company here in abroad. I did not had the time to come back to India to settle my dues. Company wants me to come back to India to settle all the dues but unfortunately I can not come until next year end. How to settle my PF amount? I am nearly sure they will not sign my PF application as well.. (We have some legal Agreement Dispute).. What do you think will be the best Approach?
Thank you in advance!
Yash
Yash, unfortunately there are not many choices here. Legally a company is not expected to stonewall an employees pf withdrawal just to settle the disputes they have (Ex: not service notice period) but almost all companies do that. The one option you have is to visit India and negotiate with your old employer and settle things amicably. You have an option to proceed legally using a lawyer but if you have a legal dispute with them, it could backfire as well.
DeleteHello Anand, thanks for your answers..
DeleteWhen I come India, I am planning to Attest the pf form from my Bank Manager. I have downloaded the pf Statement from the Website. I also have a mail comunication from my previous employer for not settling my dues... Assume this should work.. what do you think?
Thank you,
Yash
Hi Anand,
ReplyDeleteI worked with a Company for about 4 years. Along with PF, some of my Money was diverted into VPF as well. I have claimed them under sec 80C for tax benefit. If I withdraw my PF now, will they deduct tax? Total accumulated amount is around 4lacs.. currently I have no Job or income in India.. what if I withdraw next year (after 5 years)?
Thanks,
Amar
Amar - no matter when you withdraw, Now or next year or 2 years down the line, the withdrawal will be taxable because the age of the PF Acc is only calculated for as long as monthly contributions were made.
DeleteIf you want to avoid the tax, you can wait until you join a new job and then transfer this PF there.
Hi Anand,
ReplyDeleteI have a few questions
1) When I transfer my PF account , do I get a new PF account number and the money is transffered to the new from the old account or does the PF account number remains the same.
2) Suppose I have a moved to a new company after working for 3 years in company A. Considering I am working and there is no gap in employment.
I have opened a new PF account in the new company assuming I can withdraw the money in old PF account.
However, I cannot because I am still working .
The question here is why I am allowed to open a new PF account when I already one.
The next question is, in the current situation when can I withdraw the old PF account's money.
Can I still move my money in old PF account to the new PF account .
Abhay - See answers:
Delete1. You usually transfer your old pf account money into an existing pf account. So technically you are not getting a new account number. (This existing account will be opened by your new./present employer when you switch jobs)
2. No, you cannot withdraw money from your old pf acc when switching jobs or when you are presently employed.
3. Good Q - The government technically says that you are not supposed to open a new pf acc when an old one exists but most people do. This is why government is coming up with a universal pf acc number which you can take with you when you switch jobs.
4. Never. As long as you are employed, you cannot withdraw the old pf acc money
5. Yes you can transfer money from that old pf acc into your present pf account even now.
Hello,
ReplyDeleteIn my PF statement, I see three components - Employee Share, Employer Share and Diverted to Pension funds. So what is my total PF balance? Should I be adding these three components? Can you please explain what this Divered to Pension funds mean?
No, you should only add employee and employer share. The pension fund share goes into your Employee Pension Scheme EPS Account. REad this: http://anandvijayakumar.blogspot.sg/2013/03/how-much-pension-will-i-get-through.html
DeleteHi Anand,
ReplyDeleteFirst of all, I wud like to tell u that u r doing a fabulous job and your help for people is very appreciable.
Like others, I have question too, and that is: "I worked for a MNC for 5.5 years and left that company in January 2014 and then I started my own business and got busy settling it. Now it has been almost 7 months and I have not applied for EPF withdrawal yet. Can I apply now or later, or isn't any time boundation withdrawing EPF??".
2nd Question: "How much time EPF department takes to send EPF amount in bank account??".
and is the procedure same like this-->>Filling up for 10c and 35c(i dont know the names exactly, just knows there are 2 forms, I have both of them)--->>Taking employer sign on both forms(HR)--->Sending it to EPF Office(I live in Delhi but my EPF office is in Bandra, Mumbai)--->>Rest is their work.
Thanks & Regards
Gulzar
Gulzar - thanks for your feedback.. See answers to your Q's
Delete1. You can withdraw any time you want. However, the longer you wait, the harder it would be for you to get your old employer to cooperate. So, its better you submit the request immediately.
2. Usually it take about 3 months for the money to reach your bank account.
3. Yes, fill up the forms, get your employer to sign & attest them and submit to epf office. Thats all.
Anand
Submitted Form 31 to withdraw PF for buying the site, post my submission I realized that my ask is incorrect & less than what im entitled for.
ReplyDeleteIs there a option to resubmit a review petition or should I resubmit the form again.
PS : Entitled = Least of the three ( 24 Months X Basic + DA or Employee & Employer share including interest or Actual cost of the site)
Vijay - The amount you are entitled to is always capped at the amount of money you have in your PF Account. If you have 50,000 as your PF Corpus (Employee share + employer share + interest accrued), no matter how much your 24 * Basic or actual cost of site is, the amount you can withdraw is capped at 50,000 rupees.
DeleteYou can always cancel your request and resubmit a fresh request provided your original request wasnt processed already.
Anand
Hi Anand,
ReplyDeleteI really appreciate your answers on helping people.
My question is
1. After getting the loan from my PF, do I have to pay it monthly? (As we do it when we get loan from other banks).
2. If we have to repay the loan amount how much will be the interest rates? and for how many years tenure we can take the loan?
Anonymous - These are not loans. These are withdrawals. It is your money and you are taking it for your use. You wont be repaying it. This is why the PF office sets eligibility criteria and the maximum amount you can withdraw is always capped to your PF Account corpus.
DeleteThank you Anand :), can we also take loan on PF?
DeleteNo anonymous, I dont think so. Per my knowledge, PF does not allow loans. You can only make withdrawals
DeleteDear anand,
ReplyDeleteI want to purchase a Agricultural land, I am working for the last 7 Years. can I withdraw my PF amount for this purpose?
No, I dont think so.
DeleteHi Anand,
ReplyDeleteI worked in India between 2002-2009 at different cities (Kolkata, Bangalore, Chennai and Hyderabad). I also worked at different organizations during this time. I am now a US Citizen and settled in US permanently. What are my options of withdrawing the whole PF balance and bringing it back to US? I also do not have all my PF account numbers with me. Can you suggest what I can do?
Thanks,
Sugato Chattopadhyay
Sugato_Chattopadhyay@yahoo.com
Hi - Unfortunately I am not aware of the formalities if you become a citizen of a foreign country. The next time you come to India, it would be a good idea to visit the regional PF office nearest to your home town and request them for advise.
DeleteIn the mean time, you can reach out to your former employers and request them to share your PF Acc numbers. They will know the same. Do remember to take this info when you visit the PF Office.
Note: The usual process is that you fill up the withdrawal forms and get them endorsed by your employer and then submit to pf office. The money will be sent to a "Resident Indian Bank Account" in about 3 months time. In your case, as a citizen of USA, you cannot have even an NRI bank account. So, am not sure how this will work.
Anand
Hi, I am planning to purchase a flat, is it possible to apply for PF withdrawal with DTCP approved details? Flat not registered yet in my name.
ReplyDeleteYou should at least give an agreement between you and the builder that confirms that the flat will be registered in your name. Else, the withdrawal wont be approved
DeleteHi. I'm planning to buy a new house which is under construction, so for down payment I would need my PF corpus. What are the general timelines these days to get the PF corpus credited in bank account? Also do I need to also mention in the declaration for form 31 the property details - like builder name, location, approved authority, etc... I'm still surveying for property, hence don't have any concrete details with me immediately.
ReplyDeleteHi - The processing usually takes around 4-6 weeks. Unless you sign an agreement with a builder/seller about the house, your request will not be approved. though the money will come to your account, without a signed agreement, the pf office wont accept your request.
DeleteThanks for your response. Agreement can only be done once I pay the builder 20% of the cost of the flat. However I have considered the same 20% as part of my down payment which in turn will be paid through my PF corpus.
DeleteIs it possible that I can send a copy of agreement to PF office once I pay through my PF corpus as you mentioned the money will come into my account?
2. How does it matter if the money is in my account - and I don't produce an agreement?
3. Can only booking receipt & a draft agreement suffice the purpose for this need?
4. Does the PF amount withdrawal comes with both employee & employer contribution or it only my contribution which I can withdraw?
Anonymous - Answers
Delete1, No, it is not possible. The PF Office will not release the funds unless you provide the agreement. Without an agreement what is the guarantee that you will actually buy the house? You might use some random booking receipt and thn drop the idea of buying the house. Right?
2. Not possible. You will not be able to get the money from your pf corpus without the agreement
3. No, not possible
4. Yes, both employee & employer contribution plus any interest you earned can be withdrawn
You can talk to the builder and pay - lets say 5% or something and sign an agreement and then use the pf corpus to pay for the rest of the 20% part.
Dear Anand, Its great reading all above your blogs. I need your suggestions on below .
ReplyDeleteI joined a company in 2011 and after working for 2 years, I was transferred from one State to another State but in the same company. Now its been 2 year here and the PF no has also changed to New. Can I withdraw my PF old PF amount ?.
No, you cannot because it was an internal transfer. I think the money from your old pf acc would've been transferred into this new pf account that got created - automatically. Just check and make sure this happened.
DeleteThank you Anand for the clarification. Shall get it done.
DeleteHi Anand,
ReplyDeleteCan you please tell me the tax i have to pay if i withdraw money from my PF account for the purpose of purchasing a home ? (Withdrawal will be of around INR3,50,000)
There is no taxation on withdrawals done for purchase of a house..
DeleteHi Anand,
ReplyDeletewas working since close to 2 years in "X" organization and moving to Y organization by resingning with X.. so my question regarding PF is if I withdraw my PF amount will i get full amount.. whatever am having in my account & if yes.. how many days i should wait to get credit my pf amount.. & can i continue the same PF account with my Y organi.. after withdrawing ..
Thanks
Nagarjuna
Firstly - you cannot withdraw your pf money if you are going to join a new job. If you do so and the pf authorities catch you, you will be penalized heavily.
DeleteThe EPF department has introduced a universal account number which you can take with you while moving jobs - http://anandvijayakumar.blogspot.sg/2014/08/great-news-universal-account-number-for.html
So, you will just continue the old pf acc number with your new job also
I have completed all transactions including bank loan disbursement for purchasing a new underconstruction flat. Only sales deed is pending. Whether i would be able to get PF withdrawl for the money already paid to developer.
ReplyDeleteMitesh - IF all the amount is already paid off, am not sure if you would get the money. But, you can try.
DeleteHi Anand
ReplyDeleteThanks for posting such an informative article on PF.
I have one query about calculation of number of year whether it works as Gratuity years in round figures i.e. 6 years 7 months go for 7 years or it has to be the complete 7 years.
Also can you guide us whether we can get any type of loan/loans on the basis of PF account what are the eligibility criteria etc.
Thanks
Read this article to learn more about EPS - http://anandvijayakumar.blogspot.sg/2013/03/how-much-pension-will-i-get-through.html
DeleteNo, PF does not offer any loans. You can only make withdrawals if you meet the eligibility criteria. This article explains all those legit reasons for which you can withdraw from your pf account
Hi,
ReplyDeleteI Abscond from the company because of my bright future.So I will get my Provident fund or not
Reply asap
The PF money is your money and you can always get it - BUT, you will need your old employers signature & Attestation before your withdrawal or transfer request is processed. So, firstly you would need to reach out to that company and come to a compromise. Then they will help you fillup the withdrawal or transfer forms.
DeleteFirst of all, thanks and kudos to you for this wonderful initiative.
ReplyDeleteI have worked with this company for 5.5 yrs. i have a pf account for the said period.now i actually want to close the pf account for good as i want the money to be credited along with my salary. Can i opt to close my pf account totally? i will be joining a new employer in mumbai in next 1.5 months. i don't want to transfer my pf a/c there. i told them that i want to opt out of pf there. Can i opt in for pf anytime later in the middle of my employment with that organization.?Please advice asap as it is very crucial. thanks in advance.
Firstly - While switching jobs, you are not supposed to close your old pf account (If your new employer has pf facility). Secondly - once you enroll in the pf scheme, you will have to stay enrolled until you are employed with the company. A company cannot offer pf only to a select set of employees. Either you offer pf to everyone or no one.
DeleteKindly consider my case.
ReplyDelete1. I left my job of pvt company on jan, 2010. I have the release letter with me.
2. I joined a central govt job on Dec, 2012. Since then I am working there.
3. I went to the former employer with documents and the hr accepted the documents and later confirmed that it had been duly attested and submitted.
4. After 3 months when i visited sub regional pf office the told me that no such document has been received.
5. I tried to contact the employer but he didn't pick up phone.
Am I eligible to withdraw my epf money?
Is it mandatory to furnish unemployment certificate? ( as i am not unemployed)
Which forms needs to be filled if I am to complete the process myself?
Which documents should be furnished along with the forms?
Can I get them signed by the gazetted officer of my current office?
First - no, you are not eligible to withdraw your pf because you are presently employed. No, you cannot process the form yourself. Your old employer would have to sign/attest the withdrawal or transfer forms. Along with the form proof of employment and proof that pf was contributed on your behalf is usually attachd by the employer. No, you cannot get any gazetted officer signature for your old company pf account.
DeleteThere are two forms for withdrawal form 10 and form 19 but in your case that is not applicable since you are working now. So, initiate a transfer request to transfer the pf funds from that old employer to your current pf account. Talk to the old employer and re-initiate the process of transfer of pf
As I mentioned earlier that I am currently employed with govt of India and I don't have any type of pf a/c with my current employer i.e. govt of India. So, my case is different. I do have PPF though for tax saving and investment purpose. So is it possible to transfer balance from EPF to PPF? if not what should I do to transfer or claim my epf money?
DeleteIf you dont have a PF Account, an exception case to withdraw ur pf can be made. So, contact your old employer to initiate the withdrawal proceeds.
DeleteNote: 1. You cannot transfer EPF to PPF Account. 2. If you were employed for less than 5 years (in your old job) this withdrawal will be fully taxable and you have to pay tax on that withdrawal, this year.
Hi,
ReplyDeleteI have worked for 4 years and 2 months in India and have now moved to Dubai. How can I aplly for PF withdrawal withour incurring any Tax liabilities?
Thanks,
Ankit Kapoor
How to apply - contact your old employer.
Deletewithout tax liability - Not Possible. Since your accout hasnt completed 5 years, when you withdraw irrspective of whether you are in India or abroad, the amount will be taxed in India
First of all, I must say that your blog is the most useful link I have found for resolving any issues pertaining to Provident Fund.
ReplyDeleteMy query is pertaining to withdrawal of PF by an NRI.
For Tax filing year ending March 2015, I won't be a resident as I moved to Dubai in Sep 2014 (thus spent more than 182 days outside India),
I have a work experience of 4 years and 2 months in India, so my issue is that:
1) Given that I am no longer a resident, am I eligible to withdraw the PF without incurring any tax liabilities (owing to cessation of employment?) and if UAE doesn't have an SSA with India.
2) Also, since the PF laws state that one is only eligible to withdraw from the fund after completing 5 years of continuous service. Now, given that I was employed for 4 years and 2 months in India, would I incur a tax liability if I withdraw the PF now (due to the 5 year stipulation clause?). Is there a chance that the clause could be interpreted in such a way that i would still have to pay the tax even if apply for a withdrawal 5 years after the set up of my PF account date? (As my years of service in India would still be 4 years and 2 months)
Thanks,
Ankit Kapoor
Ankit - During withdrawal of PF, the government does not distinguish between whether you are a resident india or whether you just shifted abroad. So, the withdrawal will be FULLY TAXABLE. The amount you withdraw now will get added to your annual income for this financial year - April 2014 to March 2015 and you will be expected to file tax returns and pay the appropriate tax (as per your tax slab)
DeleteAlternately - you can wait until you come back to india, transfer this pf account to your new employer and then withdraw at a later point in time.
If you choose to withdraw now, it will be taxed.
Ankit - see answers:
Delete1. Yes, you are eligible but tax liability will be there because the age of the pf acc is less than 5 years.
2. No, you cannot interpret the clause the way that is beneficial to you. The law is straightforward. Anyone withdrawing fully from their pf account before completing 5 years of service, the amount they get is fully taxable.
So - the income you earned (From april 2014 to september 2014) would have to be added to the pf withdrawal and the total amount would be taxed based on your tax slab.
Thanks Anand for your reply.
ReplyDeleteIn case I wait till completion of 5 years since my employment (though years of service would still be 4 years and 2 months), would I still incur the tax liabilities?
-Ankit
Yes. Even if you wait for 5 more years and then withdraw, it will still be taxable
DeleteHi Anand,
ReplyDeleteFinal query: Do I still incur tax liability if the age of EPF account is 5 years while years of service is less (say 4 years and few months)?
Yes.
Deletehi anand... plz reply as soon as possible i have got my pf amount on my dormant bank account how do i withdraw it?.does it become invalid????plz help
ReplyDeleteIs your bank account dormant? If so, just visit the bank, pay the fee/penalty and revive your bank account. Thats all.
DeleteDear Anand,
ReplyDeleteReading your blog is enlightening.
I intend to buy a house in joint ownership with my mother.
Can my mother withdraw her PF (she works in a PSU - Govt bank) and then can i take the loan for the balance amount in my name ?
Awaiting your reply.
Yes, mother/father doesn't matter as long as their pf acc meets the eligibility criteria in this article plus they are a joint owner of the property you wish to buy..
Deletethanks a lot...
Deletei am doing job in a pvt.company, earlier my PF was deducting. now my PF is not deducting from last 3 years and i have completed 6 years in this company.
ReplyDeleteMY PF account isnow in operative account.
can i withraw the same,
if yes then under which condition.?
Yes, you can. If your company is no longer providing PF facility, you can withdraw the money from the account that you contributed earlier
Deletei didn't took my pf amount 2010, can i take now.
ReplyDeleteYes, you can
DeleteHello Mr anand,my husband is working for more than 5yrs,he is remove money from pf for house renovation which is on his father's name the comp hr said he can remove money so we went ahead n giving the house allotment papers n quotation paper as well after 6weeks they v replied they need more documents such as katta income tax receipt n some other papers are these really required to remove the amount
ReplyDeleteSorry, I dont understand the Q. If you are being asked for more documents/proof, you have to submit it if you want the money.
Deletesir i have a pf account from last 6 year.i want some pf advance for repairing of my house but the house is in the name of my father..can i withdraw the amount?
ReplyDeleteNo, you cannot
DeleteHello Mr Anand
ReplyDeleteAfter working for 10 Years I resigned from my company and HR has duly submitted the EPF Claim settlement to Vashi Navi Mumbai on 21 November 2014. On 24 Novemver I called EPF office for status of my claim. They have informed that My claim settlement was rejected due to name mismatch. My EPF A/C my name is registered as MALLIK R NAKKA where as in my office register and my Bank A/C my name is registered as Mallikarjuna Rao Nakka. Please advice how to rectify the name mismatch in this claim.
Hi,
DeleteWhat is the name in your Passport and/or driving license? Get the name updated as per your passport in both your bank as well as the EPF Account. Once that is done, you can resubmit your claim.
Thank you Mr Anand for the promt reply.. Keep up the good work..
DeleteHi,
ReplyDeleteI have worked for an organisation around 3yrs 10mons and have resigned my job this month and joined a new company, I am planning to transfer my old pf amt to new company. I have plans to buy land this year so when am I applicable to claim this at my new company. One more question is that you said even after 5yrs pf withdrawn is taxable. So what is difference withdrawing before and after 5yrs.
Where have I said that withdrawal after 5 years is taxable? Only Withdrawal before 5 years is taxable.
DeleteNow, if you transfer, your PF Age will be counted as starting with 3 yrs 10 months. And if the reason for which you want to withdraw partially asks for 5 years of exp, you need to work 1 year and 2 months in the new job before you become eligible.
Dear Anand,
ReplyDeleteGreetings!!!
I have worked in an organization for less than 6 months. Kindly guide me whether i will get my pf or not & what all documents do i need to submit to pf department.
Hi,
DeleteEven if you worked just for 1 month, you are still eligible to get your PF money. You need to fillup the withdrawal request form, get it attested by your employer (with who you worked this 6 months) and then submit the forms. PRoof of employment, Identity proof, bank account proof (cancelled cheque) are usually expected to be submitted along with this forms
dear sir, i want to know the taxability of income from rent.building is in the name of husband but 3 yrs ago husband expired,tds deducted in account of father.rant goes in the wife account. relese deed and new rent agreement cant be made because of disput among the sons.how this income be shown.plz teel me.
ReplyDeleteFirstly - This is a complicated legal matter and you need to get legal advise from a good lawyer.
DeleteThe tax has to be paid by whoever is the person on whose name the property is registered in (or his next survivor - wife/son/daughter/father etc). All the rental agreement etc must be changed to reflect the new owners name and then he/she has to pay tax
I am pf member from past 13 years. I wanted to withdraw pf amount for purchase of flat .I apply for PF withdrawal .
ReplyDeleteAs PF disbursal may take time can the amount required be temporarily arranged through other hand loan for final purchase & complete registration.
Once PF amount is disbursed return the loan .
Shekar - these days the amount actually is credited into your bank account directly and if that is the case you can do that. However, earlier the PF office used to issue a cheque in the builder/owners name or credit to their account. So, it is better if you consult pf office and confirm that you will get money in your account. Because, if you pay the owner/builder and they get paid again, it may be difficult for you to get the money back
DeleteHi Ananad ,
ReplyDeleteThanks for providing all details about loan against PF.
I want to take PF loan make partial payment to Builder from whom I have purchased the flat . Will the amount be credited directly to my account or it will directly got to Builder's account .
Please advise .
Regards
Arvind
Hi Ananad,
ReplyDeleteYou have great command on PF topic.
I brought flat i will get possion in next week. At time of buying flat i took 1 Lac from my brother in law. Now i am planning take advance withdawa of pf and give it to my brother in law. is it possible?
No, not possible
DeleteHi Ananad,
DeleteI am pf member from last 6 year i just got possion of my new flat. I am planing to get advance pf withdraw for furnichar and addinal work in my flat. So can i take advace pf withdaw, if yes then amount will be credit at my account? do you have any solution please suggest me.
Hi - No, you cannot withdraw from your PF for purchase of furniture. IF you are doing alterations to the flat (like constructing extra room) then you can withdraw. Yes, the money will be credited to your account.
DeleteHi Anand,
ReplyDeleteThanks for a very useful blog.I have some questions on withdrawing PFs from my 3 different PF accounts.I had contributed to PF from past 7 years working in 4 different companies.In my first company I worked for 2.7 years and transferred my PF to other company where i worked for 2.9 years. and rest 2 companies i had not transferred my PFs and I worked for 10 months and 1 year.Now currently am moving out of india and I want to withdraw my PF money from all the accounts.So my question is If I withdraw money from all my previous organizations,is the PF amount taxable?.If so is there any alternatives solutions.Since I had completed 5 years of PF contributions to PF cant i withdraw without paying tax.Also can I withdraw all the money from my account or is there any percentage I need to withdraw.Please let me know.
Thanks
msg
Hi,
DeleteWhen a PF withdrawal happens, the amount being withdrawn is fully taxable if the age of the account is less than 5 years. The last 2 jobs, since you did not transfer your PF - the money will be fully taxed when you take it out. Since you transferred the first PF to the second and totally spent more than 5 years combined - the withdrawal from this pf account will not be taxed.
Had you transferred the pf from job 2 to job 3 and job 3 to job 4 as a continuous process, the withdrawal now would not be taxable but sadly there is nothing you can do now.
You need to withdraw in full, you cannot take only a %
Hii.. I want to know that i want to take advance for my son marriage. After how much time i can get the money after applying for the advance? And will epf office verifies marriage card or not?
ReplyDeleteRow number 1 of the table is for marriage.
DeleteYes, you have to show proof that your son is getting married and they will definitely verify that a marriage is happening before releasing the funds. You will usually get the money in 4-6 weeks
Thanks Anand.. :)
ReplyDeleteHii.........my name & date of birth is mistake in pf record. I had worked in a organisation for seven years, although i had informed several time to my employer regarding the matter, no action had been taken by employer. Now i wish to withdraw my amt & i have made a affidavit regarding my name mistake in pf but not in date of birth. can i withdraw my pf amount through this affidavit.
ReplyDeleteNo, I dont think so. You have to get the data corrected before withdrawal otherwise there is a very high chance of the request getting rejected
DeleteI want to withdraw my PF for closing my home loan. I am ok if they release it directly to lender. Got several questions:
ReplyDelete1. Any idea how long it might take after applying?
2. Will it be a direct transfer or cheque?
3. If cheque, then will they directly mail it to the lender (and if so would I be kept in the loop) or mail it to me but addressed to the lender?
4. What if they take a few months and balance outstanding comes down in the mean time?
5. Would they release the original amount and bank later refunds the difference to me, or would they take an updated statement from lender before finally releasing the correct amount?
Regards,
Uday
1. Usually it takes around 4 weeks
Delete2. Earlier it used to be only cheque but these days direct transfer is available
3. You will be expected to get the amount outstanding on the loan and if this amount is lesser than your eligibility from PF account then only the eligible amount is disbursed and you have to make arrangements for the remaining funds.
4. No, it will not take many months.
5. If the loan outstanding is only 5 lakhs and you are eligible for 10 lakhs, I dont think PF office will release 10 lakhs to the bank.
Hope this helps.
Hi,
ReplyDeleteI am Vinayak, I am serving in IT industry and I transferred my last PF to current PF account and in total it is more 6 years now. My PF sum mine + Employer's contribution is more than 4 lakhs
I have purchased a plot costing 4 lakhs; and I have paid it by arranging money from relatives. NOw Can I withdraw say 3 lakh. My current basic Salary is 20000Rs.
Thanks,
Vinayak
Yes, I think you can.
DeleteThanks
DeleteHi Anand
ReplyDeleteI have purchased a flat and completed the registration in 2014 July.(Funds i tried to get from relatives+my savings)
Now i have got to know that i can withdraw money from my PF as i have already completed 5 years in service.
Can i withdraw money for the flat registered under my name? as i had lot of expenses incurred for the flat?
Regards,
Joseph
Hi,
DeleteAs you purchased and finished registration last year, I dont think you can withdraw now. If you have a home loan, you can try under the category to repay the home loan.
Hello,
ReplyDeleteI wanted to know can i avail PF for the delivery of my child. I am not sure if its included in the list.
Thanks
No, I dont think so.
DeleteHi Anand,
ReplyDeleteI worked with an organisation for around 4.5 yrs then moved on to the other where I worked for more than 2.5 yrs. While moving from my first org I had transferred by pf account and my fund was transferred to new account, I have been given a new pf account no. Its been more than a year now I am out of any employment. I am not sure if I will join a new employment.
my questions:-
1. Can I withdraw my pf account?
2. What will happen if I get a good job offer and decide to take it up after I withdraw my pf account
3. Since I am getting tax free interest on my pf account I may think of keeping it. how long it can retain it like that without contributing?
4. Since I got a new account no. after transferring to my latest org where I served for less than 3 yrs, (though my total tenure of pf contribution is more than 7 yrs) would it be taxable?
1. Yes, you can withdraw if you are not going to join a job in the next 3 months
Delete2. If you join a job now, you need to transfer the old PF Account again to your new job
3. No, you dont get tax free interest. The moment monthly PF Contributions stop, the account stops earning interest
4. Since the combined tenure is more than 5 years, the withdrawal will not be taxable
Hi,
ReplyDeleteI have left my previous company in Nov'15 and opted to transfer the PF balance to new company. Now according to previous employer Pf balance had been transferred to my new account no. XXXXX with RPFC, Thane dated on 9/3/2015 , how will I check whether amount is actually credited to account, I tried to check online but not able to retrieve any data, also I want to now my UAN no. which I tried to search using my PF acc no. but it displayed it is inprocess(under ECR) .
Please help , I want to know my balance
Usually data on the online PF website is backlogged by many months. Ask your current employer for a PF Account statement and find out if the transfer has been received.
DeleteHi Anand,
ReplyDeleteI have completed 5years in a company and I wanted to purchase a flat, The flat will be owned jointly between myself and my younger brother.
I submitted the PF withdrawal to my Employer with declaration form and form 31 with a draft agreement from the builder where my name and my younger brother name is mention as owners.
After 2weeks I got a reply from my company saying that the request is declined as flat will be owned jointly between myself and my younger brother.
1>Can you please inform how I can convince my employer to take my request and process further.
2>Is there any other way,how I can withdraw my money by staying in current job, as I have no other criteria other than flat purchase.
Please reply asap as I have to buy this flat between me and my younger brother only by using my PF money.
Thanks in Advance
Kapil Rathod
Raghunath,
DeleteAs far as I know, you cannot get PF money to buy a home jointly with your brother. Technically once you and your brother get married, you will be heads of two separate families and this may pose a lot of legal issues. You can be joint owner with your spouse or your parents or your children. Unfortunately, there is not much your company can do to help you.
You can consider a home loan or a personal loan to fund the purchase. Sorry.
Thanks
months only.
ReplyDeleteAny option for me for tax saving. I am in no immediate need of this money but not having option of transfer, Pls suggest.
Thanks in advance.
If you withdraw before 5 years, there are no options to save tax. The money will be added to your annual income for that year and you need to pay taxes accordingly on the total income. Check out overall income tax saving options here from my book on indian income tax: http://anandvijayakumar.blogspot.sg/p/books-by-this-blog-author.html
DeleteWhy cant you transfer by the way?
Hi sir,
ReplyDeleteMy father is a govt employee his age is 55 now . Does he is eligible to withdraw his 90 % of PF.
What is his retirement age Vignesh? If he is going to retire next year then Yes. If he is going to retire later, then No
DeleteHi Anand,
ReplyDeleteVery informative article. I have a question. I have done withdrawal of PF for purchase of dwelling house. It was a flat under construction (final stage).
Before the PF money got credited, i have registered the flat in my & my wife name.
PF amount was used for following :
1. Wood work
2. Builder for certain changes we have requested from the plan (alterations in paint / flooring etc)
3. Kitchen work(tiles/gas piping etc)
4. remaining amount used to repay the amount taken from friends and relatives.
Now PF department is asking for proof of registration + annexure III mentioning details about amount used for the purchase.
My questions is, whether the above mentioned items are considered part of house purchase or not ? Please confirm.
What are the documents i have to submit as proof.
Thanks,
Anirudh
Anirudh - I think the first 3 items would be acceptable but I am not sure about the 4th because the money is withdrawn from PF to purchase a house not to repay debt with friends/family.
DeleteHi
ReplyDeleteThanks for the useful article. I have one doubt that you have mentioned 50% of your contribution can be withdrawn in case of marriage (self or sibling). What does this 50% stands for i.e. 50% of EE+ER or just 50% of employee contribution only.
Thanks
50% of the current value of your PF Corpus which includes EE + ER + Interest
DeleteHi Anand
ReplyDeleteI wanted to check about Premature withdrawals, can we withdraw only once? I mean if I have taken advance say under home construction once, Can I withdraw again for any other reason say loan EMI/ alteration of home
Yes. The limitations is basically for each reason. For a different reason you can withdraw again if you meet the eligibility criteria
DeleteThanks a lot Anand!
DeleteHi Anand,
ReplyDeleteThanks for the detailed post and all the responses. We purchased a property 2 months ago and availed house loan. We did not know about the withdrawal option when we took the house loan. I wish I could have read this blog 3 months ago.
I have 6 years experience. Can I avail the withdrawal option for purchase of a house now and pay out some of the house loan with my bank? Will they release the check in my name?
Thanks in advance.
Hi - There is an option to actually withdraw to repay the loan. But, to Use that option you should have finished 10 years. You cannot withdraw now since you have already made the purchase and the loan has also been availed
DeleteHi Anand,
ReplyDeleteI resigned from a company X on Oct 2014. During the notice period i have submitted the forms for withdrawing the PF amount. I was in a assumption PF withdrawal will take some time so I haven’t contacted the company till last week. When I contacted my company last week I got to know that because of my signature is missing on one of the form the company hasn't submitted my form.
As the other organization which i joined has opened another PF account i don’t want to transfer that PF account. Now my question is
1. Is there any time limit for withdrawing the PF amount? Like within 2 years or some within some years I have to withdraw the amount like that?
2. If i leave the PF amount like this, will i be getting any interest on it?
3. Can I withdraw the amount whenever I’m in need of it?
Thanks in advacnce.
Firstly - Since you already have a PF Account, withdrawal is NOT an option. You have to Transfer the old account.
DeleteAnyways, answers to your Q:
1. No, you can withdraw anytime you want as long as you are not employed at that time
2. No, interest earning stops after 3 months of missed contributions
Remember - withdrawal before 5 years attracts income tax. Lets say you wait until you resign from Job 2 and withdraw both PFs together, individually the withdrawals will be taxable even if you spent a cumulative of 5+ years in the two jobs and could avoid that tax. If you transfer the old PF acc to the new PF acc, you can avoid this tax problem in future plus thats the right thing to do
Hi Anand,
ReplyDeleteCan u help me with the procedure for withdraw a 50% from my PF. I want to withdraw for my brother's marriage. Do i need to write any application regarding the same, or i want to fill any form to submit.
Thanks
Yes, you have to fill-up forms. Talk to your employer they can help you get the forms. In this article I have listed down the documents required for each type of withdrawal - make sure to submit them to get the money
DeleteDear sir,
ReplyDeleteI am from Bangalore. I would like to know can I withdraw my previous company PF amount. I worked my first company around 7years and resigned and joined in a new company. I have activated my UAN, and my current company pf account also available in my UAN. When I asked my previous company HR, they told i can't able to withdraw my pf since i am working, i can only transfer my money to new account. Is it correct?
Yes, they are correct. You cannot withdraw from old EPF Acc if you are still employed with a new job that also has EPF
DeleteSir ,
ReplyDeleteI completed 10 years in a single company and want to withdraw my PF amount to purchase a Flat . I want to know whether if I can withdraw all the amount available which is sum of Employee contribution + Employer contribution + Employer pension scheme (EPS) if mentioned total is less than 36 months of wages ( basic pay ) . or I can withdraw total of EE + ER upto 36 months of wages excluding EPS . Please clarify
i really appreciate your help Thanks
EPS is not counted for this withdrawal. Only the EE + ER Contribution is counted.
DeleteYou can withdraw EE + ER corpus up to 30 months of basic salary not full wage. If your basic salary is 10,000 but gross salary is 25,000 - the withdrawal can be 36 * 10,000 = 3,60,000
If your EPF Corpus has more than 3.6 lakhs, your withdrawal will be limited to this amount. If your corpus has less than 3.6 lakhs, the withdrawal will be limited to whatever amount your corpus has.
Hi,
ReplyDeleteI want to withdraw my money from PF account, for repayment of my home loan and I want know how much I will get? Pls find the details below.
Location : Chennai,
exp : 10+
PF amount : 5 Lakh (employee + employer) share
Basic sal : 30000
Whether I will get 5 lack from the PF account...? Pls reply me..
Thanks,
Arun.
If your basic salary is 30k then yes, you can get 5 lakhs.
DeleteIf your basic salary is lower than 30k and the 36 times basic salary is lesser than 5 lakhs, you will only get that amount
Thanks Anand.. I asked the same question to my company .. They are not confident and told like that 60% to 70% will be getting from total amount..
DeleteHii anand
ReplyDeleteIt was really helpful how cleary you solve the queries.
Here is my situation i am in a private bank as a manager recently joined a year back and i want to close my personal loan and i want my pf account to be withdrawed which is opened a year back and i want the complete amount to be withdrawed.
First of all is that possible and if so do i have to fall in any one of those categories for my withdrawl and it is not partial withdrawl , i have not quitted but want the whole amount which is there in my pf account so can you suggest what best can be done.?
THANKS IN ADVANCE.
Amit Sharna
Amit - No, you cannot withdraw from your EPF Account to close a Personal Loan. Check out the legally allowed reasons for withdrawal and the conditions that you need to meet in the article.
DeleteHi Anand,
ReplyDeleteVery insightful blog! My previous employer had a PF which was an exempted trust but the EPS was with EPFO. So I have two questions
1. Can I withdraw the EPS amount (Service year at last employer was one year and age is less than 50 year) and get the PF transferred to my current organization?
2. Is it mandatory to withdraw both PF and EPS together? Can I just withdraw EPS and not withdraw EPF.
3. If the answer to above is yes, how do you apply for the withdrawl procedure?
Yes, as far as I know the withdrawal must be done for both together. However, if you have crossed a total of 10 years of experience you cannot withdraw EPS. You have to wait until retirement age and get pension.
DeleteWithdrawal procedure is just that you contact your employer and fill up the requisite forms for the withdrawal
Hi Anand,
ReplyDeleteCan I withdraw my VPF amount only after 5years maturity totally? ANd then can I restart adding amount to VPF account for next 5years?
Once the VPF contribution gets deposited into the EPF Account, all the rules governing EPF funds are applicable. So, unless you resign from your job and stay jobless for at least 3 months, you cannot get your funds.
DeleteYou can start/stop your VPF Contributions any time you please but withdrawal is not possible until you retire or resign
Hi Anand,
ReplyDeleteI went through a lot of your answers and sort of got answer to my query, but i still want to verify.
I worked in an organisation for 3 years and came abroad on an assignment. I checked my PF balance and it's a decent amount accumulated. I have been abroad for 4 years and didn't contribute to my PF. When i return to India permanently (in about 2 years), will the same PF account continue for me, given that I'll be joining my base company in India.
So do you suggest me withdrawing the amount, or to hold it and continue when I am back. Also given that my continuous service in India was for 3 years, when i go back will my PF and service we considered in continuity or not (reference to PF Pension clause, applicable after 10 years of service).
And if my amount in PF remains unclaimed for long, will the government refund it to me lets say after 10 years?
Really appreciate your Help.
Thanks,
Ankur
As long as you are working for the same company, I dont think you can withdraw your PF. You are just on an onsite deputation and will be joining the same company once back.
DeleteIf PF is getting contributed every month, the time you spend at onsite will count towards your total experience for PF rules. If they dont, then it will pause at 3 years and resume once you come back and PF contributions start again
Hi Anand, I was searching for some information and I saw your article. I think you might be able to help me.
ReplyDeleteHere's my case. My boyfriend and I are planning to get married, he is an American and I am a Malaysian Chinese. As advised by many people, it seems like it'll be better for us to register our marriage in the USA instead of Malaysia, for visa purpose (we decided to stay in the USA after marriage). I get to know that I can withdraw up to 50% of my EPF savings to fund my marriage, but how if we are going to have the wedding ceremony only in the USA? Can I still withdraw my EPF savings for marriage?
And how about closing my EPF account and withdraw all the money after i migrate to the USA? How is the process like? Do I need the marriage certificate as supporting prove?
Thanks in advanced for your assistance. Hope to hear from you, it'd be a great help!
If you are talking about an India EPF Account (which I doubt is the case here) then yes you can withdraw for your wedding even if it is in USA or MAlaysia as long as you have been contributing to EPF for 7 years.
DeleteYou can only keep the EPF Account as long as you are employed in India. If you are leaving the country for good, you have to withdraw it while resigning from your job.
Dear Anand,
ReplyDeleteMaybe some of the terms used in the whole EPF process is not clear to layman like me. Hence my question.
I had joined a company in April 2011 in Bangalore. Towards the EPF, there was my share and the Employer's Share as well. I continued there till March 2013, when I quit my job. I then moved to Chennai and have joined a startup in 2014 April (Immediately). No PF contribution here as company is small (<10 employees). I dont foresee changing employer nor this copany scaling above 20 in the next couple years. So, If I withdraw my PF completely, Will I still be taxed? What portion of the amount will be taxed?
a ) My Contribution? Or the
b ) employer's Contribution
c ) A column called "Diverted to Pension fund" in my EPF passbook
d ) Total amount?
Your clarification will be greatly helpful.
Thanks and Regards
Karthik
As you worked for around 2 years only, the withdrawal will be taxable. The entire corpus - your contrib + employer contrib + any interest you might have earned
DeleteThe amount that went to the pension fund can also be withdrawn but the amount you get there would be based on no. of years of service rather than the actual amount diverted. Read this: http://anandvijayakumar.blogspot.sg/2013/03/how-much-pension-will-i-get-through.html
Dear Anand. Thanks for the clarification. Had I known this earlier, I would have withdrawn the balance earlier. - without waiting for 5 years :). I was ignorant all along. But, better late than never.
DeleteThanks again.
Karthik
Anand, as i mentiomned earlier, i have joined another company that does not have to offer epf. So, to withdraw my complete account, should i use form 19? or form 10C? kindly clarify.
DeleteThanks
karthik
Form 10c
DeleteThanks again anand.
DeleteReally a good work.. Appreciated!!
ReplyDeleteAm working for MNC for 6 years, I withdrawn PF amount before 4 months for acquisition of site. While withdrawl, they pointed a condition that "The Acquisition of plot shall be completed within 6 months of the withdrawal of the amount". But now for personal reason I didnot but the plot . Now will they ask for the registration document?. or will they ask me to return back the money?
Hi,
DeleteYes, you have to submit proof of purchase within the stipulated time otherwise you would be asked to return the money.
Dear Sir,
ReplyDeleteThis Ganesh I want one help
actually i have left from my previous company 3 month back without notice period, now they are telling we should not process your pf claim.
can i withdraw my pf amount without employer signature?
No, I dont think so. The endorsement for the withdrawal should be done by the employer which they probably can deny until you reach a compromise reg. not serving the notice period.
DeleteTry to talk to them and negotiate.
Hi Anand,
ReplyDeleteI have queries regarding EPS
1-If we withdraw PF before completing 10 years of service do we get the EPS also?
2- If we transfer PF to the new company, does EPS will also get transfer
1. By withdrawal you mean - at resignation? If so - YES
Delete2. Yes. But, for EPS actual amount doesnt get transferred. It is the No. of years of Experience that will get transferred.
This comment has been removed by the author.
ReplyDeleteCheck the table in the article - for purchase of flat it is 36 times your basic salary or current EPF corpus whichever is higher.
DeleteNo, you wont get money without the agreement
Hi Anand
ReplyDeleteI have a query...
Is there any provision to withdraw some amount from EPF and pay it back monthly by contributing extra to my EPF.
The reason I am asking this is because I have not completed 5 years in service and I do not want to pay additional tax on the amount withdrawn
No, EPF does not offer such options
DeleteHi Anand,
ReplyDeleteI have purchased an under construction flat which is due completion by Dec 2016. Till now i paid 30% from my pocket and took a bank loan with SBI which disbursed another 50% to the builder. 20% payment to builder is still pending + registration charges when final possession happens ( Registration will happen in Oct 2016 ). I completed 10 years of PF contribution; now can i avail EPF withdrawal to repay the pending 20% directly to the builder without taking from bank loan. Will the PF amount be directly credited to my account to do this ?
Sarath - What is the SBI Approved loan amount? Has SBI approved the remaining amount also and just hasnt released the payment or have SBI released all the money?
DeleteI suspect it will be the former with SBI ready to issue cheque for the remaining. So, I would suggest you make a withdrawal to repay the loan once the construction is over and registration is complete
Hi Anand,
ReplyDeleteMy husband and I are jointly buying a house. So, can both of us withdraw from our PF account?
Thanks in advance.
If you meet the eligibility criteria in terms of no. of years of service- Yes you both can
DeleteHi Anand,
ReplyDeleteMy father had gone through angioplasty surgery dated 2 Jan 2017 and surgery cost around 1.2 lakh.Is it possible to get the PF advance for medical if I submit the medical certificate?
Since surgery happened on January, will I be able to apply for PF advance?
You can try because this is a legit case that qualifies for withdrawal. But, if you have already paid for it then i would suggest you don't liquidate PF Savings because PF Accounts earn good interest and that money being in your account will probably be more beneficial for you during retirement than it is now.
DeleteThanks Anand.
DeleteHi,
ReplyDeleteI have a question regarding EPF withdrawal by NRI (Sorry if this i salready answered above, but I couldn't interpret it).
I completed 8 years before leaving my Indian organization and shifter to US. Today I want to withdraw my EPF(2.5 years since I left my organization) but I only want to use my NRO account for deposit. How can I withdraw my EPF? For NRO account I think every deposit need a CA letter what would be its content?
Do I need to show the interest earned as a income in US while tax filling?
Thanks
Shiva
No, i don't think you need any CA letter for deposits in NRO. You can withdraw EPF using the standard procedures by contacting your ex employer and ask them to put the money in your NRO Acc. You cannot transfer the NRO funds to USA as repatriation is not allowed in NRO
DeleteReg. taxes in USA - sorry, am not qualified to comment on that. Talk to a consultant in the USA about the same.
Hi,
ReplyDeletetill march 2017 i was working for "A" company, after that my company "A" was took over by another company "B".
now i have two pf accounts linked under one UAN number. one PF account with "A" company and the another one with "B" company.
can i able to close and withdraw money from my "A" company's pf account?
No.
DeleteHi,
ReplyDeletei am planning to take partial amount from my PF( its 2 years over) for my Wife treatment(Delivery), what are the documents i have to submit to get the PF and what is the percent of tax i have to pay.
The withdrawn amount gets added to your annual income for the year and tax will be based on your tax slab.
DeletePS: I don't think you can withdraw for delivery as it wouldn't meet one of the criteria of being hospitalised for a long period.