The total Employees’ Provident Fund (EPF) amount consists of the contribution made by the employer and employee and the accumulated interest on the amount.Under the Employee Provident Fund Act 1952, once you attain 58 years of age, you can claim the total PF corpus on retirement. However, in certain conditions, you can claim it before attaining the age of 58.
You can withdraw your entire PF amount after 2 months of resignation from a job provided you are still unemployed. If you want to know the procedure to withdraw PF online after resignation, scroll down and read further.
Eligibility For PF Withdrawal After Resignation
You need to fulfil certain conditions to be eligible to withdraw your PF amount after Resignation, which is as follows:
- You must serve a notice period of one month or pay the corresponding amount to the employer.
- You must complete two months of continuous service with your current employer.
- Your personal details must be updated on the EPFO portal.
- You have not joined another company or job.
- You can withdraw 75% after one month of resignation and the entire amount after two months of resignation.
Procedure For PF Withdrawal After Resignation
Here is the procedure for PF withdrawal after your resignation:
- The first step towards withdrawing your PF balance is to submit Form 19 (PF Settlement Form) to your current employer. You can easily obtain this form from theofficial website of EPFO or the nearest EPFO office. Before submitting it to your current employer, you must sign the form. You must also submit a cancelled bank account's cheque or a copy of your bank account’s passbook.
- In case you change your job, you can transfer your PF account from your previous employer to the new one to avoid incurring tax on the interest. You can do this simply by submitting Form 13 to the current employer. Post submition, your current employer will verify all necessary details and approve your withdrawal request. This process may take approximately 20 days from the date of form submission.
- After withdrawal request approval, your accumulated PF amount will be automatically credited to your bank account after 30 days from the date of approval.
How To Withdraw From EPF Account Online?
In today’s era of digitalisation, making a withdrawal request for a PF amount is hassle-free. Simply visit the EPFO portal and submit a withdrawal claim using your UAN. All you need to do is follow these simple steps below:
Step 1: VisitEPFO’s official portal and enter your UAN and password to sign in.
Step 2: Click on the 'Online Services' tab. In the drop-down menu, choose the 'Claim' option.
Step 3: Once redirected, enter your bank account number and click ‘Verify’.
Step 4: Click the ‘Yes’ to continue and select ‘Proceed with Online Claim’.
Step 5: Under the ‘I want to Apply for’ tab, select the type of withdrawal claim you want to apply for.
Step 6: Select the ‘PF Advance’ form. Explain the reason behind the EPF amount withdrawal and submit your application. You may be asked to submit documents for verification.
Step 7: After the approval, the PF amount will get credited to your bank account.
Taxation Of PF Withdrawal After Resignation
The Employee Provident Fund is a retirement benefit in which you and your employer contribute 12% of your salary towards EPF. The withdrawal amount consists of the principal amount and the interest earned.
PF withdrawal becomestaxable depending on the time of withdrawal. For instance, if you withdraw before five years of continuous service, the taxability differs from the PF withdrawal after five years of continuous service.
- Before Five Years- If the PF amount is withdrawn before five years of continuous services, both the principal and interest accrued are taxable.
- After Five Years-If you withdraw the PF amount after completion of five years of continuous service, then the principal and the interest accrued will be tax-free.
However, if the primary reason for discontinuation of service and withdrawal of the PF amount falls under any of the following reasons stated below, it shall not be taxable:
- Discontinuation of employer’s business
- Medical emergency (Illness or disability).
Impact On Future EPF Contributions
EPF is a retirement savings option that provides assured returns and tax benefits. However, withdrawing the EPF balance before completing the required five years of continuous servicewill reduce your retirement benefits. Additionally, your future EPF contribution will be impacted as the withdrawn amount will be taxable.
Final Word
The PF amount is a part of your salary, which the employer deducts on your behalf every month. After your resignation or retirement, you can claim the PF amount accordingly. You can also withdraw this PF amount by filling out the ‘Composite Claim’ form on the EPFO website. Make sure to go through all the information discussed about PF withdrawal in this article before filing a withdrawal claim.
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