How to withdraw PF and EPF after leaving the job?

 

• Transferring PF with the new employer can help you avoid tax on its interest
• Merging all your PF accounts with every new job change is an ideal way of ensuring enough fund in your post retirement fund

A Provident Fund or PF is a part of your salary which is deducted on your behalf every month. When you leave the job, you can claim the PF amount. Many people upon switching their job, do not get their PF (provident fund) or do not transfer their PF from the previous employer to the new employer. The main reason of this is, it keeps earning tax free returns and the funds are safe with EPFO (Employees’ Provident Fund Organization).  However, Income-Tax Appellate (ITAT) has eliminated the tax-exemption on interest earnings after quitting the job. So to avoid tax on interests after quitting your job, you have to withdraw the amount or transfer PF to the new employer.

PF Withdrawal – When can you withdraw PF balance?

The total PF (Provident Fund) amount comprises the contribution made by you and your employer plus accrued interest. Under Employee Provident Fund Act 1952, you can withdraw the full PF amount if you retire from your service after having attained the age of 58 years and you can also claim the EPS amount (Employees’ Pension Scheme amount) at the same time. You can claim the full PF amount even before attaining the age of 58, if you have retired from your service and you have been unemployed for straight two months (60 days). PF and EPS amount cannot be withdrawn after the completion of 10 years of your service because if you have completed 10 years of your service, your employer will necessarily have to provide you with the pension benefits. You can withdraw your PF and EPS amount by filling the composite form launched by EPFO which will take care of your withdrawal, transfer, advances etc. There is one thing that you should keep in mind before starting the withdrawal procedure and that is to merge all your previous PF accounts.

PF Withdrawal plus EPS Amount:

There are mainly two ways to withdraw your PF (Provident Fund) and EPS (Employees Provident Fund) amount, one is using your Aadhaar card number and the second is without using Aadhaar card number. Using Aadhaar card makes the process simple and less time consuming however without using Aadhaar card makes the procedure time consuming. Here is how you can withdraw your amount with and without Aadhaar card:

• Without using Aadhaar Card:

  If you do not hold an Aadhaar card but you have your PF number, you can fill Composite Claim Form (Non Aadhaar). If you haven’t completed 5 years of service period, you will have to fill all the relevant details like PAN (Permanent Account Number) and attach 2 copies of form 15G or 15H.  If you do not have UAN (Universal Account Number) you can provide PF account number.

• With using Aadhaar card:

  If you hold an Aadhaar Card, you will have to submit a Composite Claim Form (Aadhaar) directly to the EPFO office without the attestation of claim from your employer. You will have to attach a cancelled cheque with the form and your entire PF balance amount could be sent to your bank account.

Procedure for PF Withdrawal After Resignation

These are the steps that will help you understand how to withdraw your PF after leaving your job:

• To initiate the process of withdrawing your PF balance, you will need to acquire Form 19 (PF Settlement Form) either from the official EPFO website or the nearest EPFO office. After obtaining the form, ensure that you sign it and attach a cancelled cheque or a copy of your bank account's passbook before submitting it to your current employer.

• To avoid paying taxes on the interest, it is possible to transfer your PF account from your previous employer to the new one by completing and submitting Form 13 to your current employer. After verifying the information provided, your current employer will approve the withdrawal request, and the entire process is typically completed within 20 days of submitting the form.

• The accumulated PF amount will be automatically credited to your bank account after 30 days of approval of the withdrawal request.

How to Withdraw EPF After Resignation Online

In this age of digitalisation, requesting a withdrawal of your PF amount has become extremely convenient. Just head over to the EPFO portal and submit your withdrawal claim using your UAN. All it takes is a few straightforward steps as explained below:

• Step 1: Sign in with your UAN and password on EPFO's official portal.

• Step 2: To access online services, click the 'Online Services' tab. Choose 'Claim' from the drop-down menu.

• Step 3: Please enter your bank account number and click 'Verify' once you are redirected. 

• Step 4: Select 'Proceed with Online Claim' after clicking 'Yes'. 

• Step 5: Choose the type of withdrawal claim you wish to submit under the 'I want to Apply for' tab.

• Step 6: Submit your application using the 'PF Advance' form, explaining why the PF amount needs to be withdrawn. Documents may be required for verification.  

• Step 7: Your bank account will be credited with the PF amount after approval

Is PF Withdrawal Taxable After Resignation?

An Employee Provident Fund (EPF) is a retirement benefit program in which both employers and employees contribute 12% of the employee's salary. Withdrawals consist of principal and accumulated interest. Withdrawals from PF are taxed differently based on the timing.

Withdrawals made before five years of continuous service are taxed differently from withdrawals made after five years. All withdrawals made after five years of service are tax-free, including principal and interest. However, withdrawals made prior to this period are subject to taxation.

Certain situations, however, exempt PF withdrawals from taxation. When service is discontinued or PF amount is withdrawn for specific reasons, the amount shall not be taxable. There are several examples, such as a business closure or a medical emergency. In order to make informed decisions about PF withdrawals, you should be aware of the tax implications and exceptions.

Conditions for Withdrawal of PF

There are four conditions in the PF withdrawal procedure. Observe all the conditions and choose the form accordingly.  

1. If you are withdrawing PF balance and EPS amount before completing 10 years of service:

You can claim both PF and EPS amount if you haven’t completed 10 years of service. You will just have to fill the Composite Claim Form and choose both the options ‘Final PF balance’ as well as ‘pension withdrawal’. If you are planning to work again you can submit the Form 10C and get the ‘scheme certificate’.

2. If you are withdrawing PF balance and EPS amount after completing 10 years of service.

If your service period is more than 10 years, you cannot withdraw the EPS amount. You can fill the Composite Claim Form along with the Form 10C to get the scheme certificate. Pension will be paid to you after attaining the age of 58 years.

3. If you are withdrawing PF balance and EPS amount between the age of 50 and 58 years (after completing 10 years of service).

If you are between the age of 50 and 58 years and you have completed a service period of 10 years, you can claim an early pension (reduced pension). For this, you will just have to fill Form 10D along with the Composite Claim Form.

4. If you are withdrawing only PF balance along with full pension after the age of 58 years.

If you have attained the age of 58, it is very simple to get the full claim of pension. You will just have to submit the Form 10D.

Choose and submit the form according to your condition and enjoy all the benefits of EPF (Employees Provident Fund) and PF (Provident Fund) scheme after getting retired from your service.

Effect on Upcoming Contributions to the EPF

There are several benefits associated with employee provident funds (EPFs), such as guaranteed returns and tax advantages, that serve as a secure retirement savings option. It is, however, not recommended for you to withdraw your EPF balance before you have completed five years of continuous service with the company. In addition to reducing retirement benefits, early withdrawals may also have an impact on your future EPF contributions as well. If you withdraw the amount, it becomes taxable, which has a detrimental effect on your long-term financial planning. When managing EPF contributions and withdrawals, it is crucial to take the implications into account carefully, as this decision can affect your financial well-being in retirement.

Conclusion on How to Get PF Money After Leaving Job

The Provident Fund (PF) is a monthly deduction from your salary made by your employer. Following retirement or resignation, you may claim your PF amount. You can withdraw your funds by completing the "Composite Claim" form available on the EPFO website. The information presented in this article regarding PF withdrawal must be thoroughly reviewed before submitting a claim. A thorough understanding of the process contributes to a smooth withdrawal experience and enables you to make informed decisions about your PF funds post-retirement or resignation. This will help you understand how to reasonably withdraw your PF after leaving job.

FAQ's On How to Claim PF after Leaving Job 

Q - How can I withdraw my PF amount after leaving job online?

To understand how to withdraw your Provident Fund (PF) after leaving a job, simply access the Employee Provident Fund Organization (EPFO) portal, fill out the online withdrawal form, and submit the necessary documents as instructed on the official website.

Q - Can I take a full withdrawal of my PF funds after my resignation?

Once you have officially resigned, you have the option to request a full withdrawal of your Provident Fund (PF) funds. This can be done by submitting the required paperwork and following the withdrawal procedure on the Employee Provident Fund Organization (EPFO) portal.

Q - Is there any age restriction in order to become a member of the EPF

There is no minimum or maximum age requirement to become a member of the Employee Provident Fund (EPF). As long as individuals meet the employment criteria and are eligible for EPF coverage, they can join at any age.

Q - Is it mandatory to withdraw PF after resignation?

Withdrawing your Provident Fund (PF) after resignation is not a requirement; it is entirely up to you whether you decide to utilise the funds or leave them in your PF account for future needs.

Q - Is it possible for an apprentice to become an EPF member?

If the employer chooses to include apprentices in the EPF scheme and adheres to the necessary regulations, apprentices can indeed become members of the Employee Provident Fund (EPF).

Q - How many days required for PF withdrawal?

The duration for processing Provident Fund (PF) withdrawal can vary. Typically, online claims are processed within approximately 20 days, while manual claims may require more time. The exact timeframe depends on the thoroughness of documentation and the effectiveness of the EPFO procedure.

Q - What happens if I don't withdraw my PF after Resignation?

If you decide not to withdraw your Provident Fund (PF) after resigning, the funds will continue to stay in your account and earn interest. You have the option to either withdraw the funds at a later date or transfer them to your new employer.

Q - Are there any actions taken if the employer does not make PF contributions?

Employers who fail to make contributions to the Provident Fund (PF) may face legal consequences, such as penalties and legal action, imposed by the Employees' Provident Fund Organization (EPFO).

Q - Can I withdraw my PF without resigning?

While it is possible to make partial withdrawals from your Provident Fund (PF) without resigning, a complete withdrawal usually requires you to resign.

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ARN: ED/01/24/7888