How to Withdraw EPF: Eligibility & Process Explained

epf withdraw — (Source: financialexpress)

Individuals willing to withdraw EPF must note that withdrawal is possible both partially and fully. Similarly, you can choose to withdraw the amount through an offline or online mode. Partial EPF withdrawal can be made under certain circumstances. On the other hand, complete withdrawal is allowed for retiring persons or individuals with two months of unemployment.

If you are withdrawing EPF under any of such circumstances, read on to know everything about it.

Different Ways to Withdraw EPF

As stated in the introductory paragraph, EPF can be made in both offline and online methods. Therefore, let's discuss the processes separately.

How to Withdraw EPF Offline?

Below is discussed the offline withdrawal process of EPF.

Step 1: Download the Composite Claim Form (Aadhaar or non-Aadhaar).
Step 2: Individuals applying through the Composite Claim Form (Aadhaar) need to link the Aadhaar number with the primary bank account number (known as the Aadhaar seeding) and provide the bank account details. Further, it requires an activation process through the portal.
Step 3: On the other hand, individuals applying with the Composite Claim Form (Non-Aadhaar) need not do the Aadhaar seeding process to withdraw EPF.
Step 4: Once individuals fill out data, they must submit the form to the respective jurisdictional EPFO office. Here, the attestation of the employer is also needed.

How to Withdraw EPF Online?

Following is mentioned the online process for EPF withdrawal.

Step 1: Visit the Member e-Sewa portal on the EPFO portal.
Step 2: Sign in to your account with a password, UAN and Captcha code.
Step 3: Select 'Claim (Form-19, 31, 10C & 10D)' from the ‘Online Services’ tab.
Step 4: A new webpage will open where you need to provide the correct bank account number linked with UAN.
Step 5: Click on Verify.
Step 6: After verifying bank account details, you need to confirm the terms and conditions mentioned by EPFO.
Step 7: Select 'Proceed For Online Claim.'
Step 8: Here, you need to select the reasons for the withdrawal from a drop-down list. Remember, the given listing shows options based on your eligibility.
Step 9: Once individuals complete selecting the reasons for withdrawal or advance, they need to provide their address. Please note that individuals claiming an advance must mention the amount and upload the scanned copy of the required documents (as instructed by EPFO).
Step 10: Click on terms and conditions.
Step 11: Select 'Get Aadhaar OTP.'
Step 12: An OTP will be sent to your registered mobile number. Insert the OTP in the relevant box.
Step 13: After successfully entering OTP, the online claim for EPF withdrawal will be submitted.

To withdraw EPF online, individuals have to activate UAN and link it with the KYC, i.e. Aadhaar, PAN and bank details. Once all the conditions are met, individuals can easily claim for EPF withdrawal.

When Can EPF Be Withdrawn?

EPF withdrawal is allowed under various circumstances, and each condition comes with different eligibility parameters. Read on to know these varied EPF withdrawal eligibility.

Retirement: Individuals retiring from employment at the age of 55 are eligible for EPF withdrawal.
Unemployment: Individuals who have remained unemployed for two months can withdraw 75% of the total EPF amount.
Medical Purpose: When EPF withdrawal is made for medical purposes, the claiming process does not require a minimum service year.
Wedding: To withdraw EPF for wedding purposes, individuals must have a minimum of 7 years of service life.
Repayment for Home Loan: Individuals withdrawing EPF to repay a home loan must complete 3 years of service life.
Purchase or Construction of House: The eligibility for EPF withdrawal in case of purchase or construction of a house is that the concerned individual must have completed 5 years of service.
Renovation or Reconstruction of House: Those withdrawing EPF for renovation or reconstructing a house must have 5 years of service life.

How Much Time Does It Take to Withdraw EPF?

The time taken for clearing the claims from the pension body depends on the mode of withdrawal application. These are mentioned below -

Application for EPF withdrawal online can take 3 working days.
On the other hand, applications for EPF withdrawal offline can take up to 20 days for settlement.

How Many Times Can EPF Be Withdrawn?

Advance EPF withdrawals are permitted under certain circumstances and have specific limitations. These are discussed below,

Individuals willing to withdraw EPF for marriage purposes can do so only 3 times.
Individuals withdrawing EPF to purchase a plot or house or construct a house can apply for a one-time EPF advance claim.
In case of a medical emergency (before retirement), withdrawal has no definite limit.
EPF withdrawal (advance) for funding post-matriculation education can be made 3 times.

What Is the EPF Withdrawal Process for a Deceased Person?

In case an individual dies during their service life, a nominee can claim money from this deceased person's Employees' Provident Fund (EPF), Employees' Deposit Linked Insurance Scheme (EDLI), and Employees' Pension Scheme (EPS) accounts. Here, the beneficiary has to follow these steps -

Step 1: Visit the official EPF portal.
Step 2: Select the link stating 'Death Claim Filing by Beneficiary.'
Step 3: The nominee has to enter specific details such as Universal Account Number (UAN), beneficiary's name, beneficiary’s date of birth, Aadhaar of the beneficiary, and Captcha code.
Step 4: They have to click on ‘Authorised Pin.’
Step 5: An OTP will be sent to the registered mobile number (linked with the Aadhaar) of the beneficiary. The beneficiary has to enter the OTP and can file the death claim with EPFO.

By following the process mentioned above, a beneficiary can claim EPF after the death of a salaried person.

How to Check EPF Withdrawal Status?

Once an individual places a request for EPF withdrawal, they can check its status online.

Follow the steps mentioned below to check EPF withdrawal status.

Step 1: Visit the EPFO portal.
Step 2: Click on the 'Our Services' tab and select 'For Employees' from the drop-down list.
Step 3: Click on 'Know Your Claim Status.’
Step 4: Provide your UAN.
Step 5: Enter the Captcha code.
Step 6: Provide details including state of PF office, respective PF office, establishment code, Provident Fund number.
Step 7: Click on 'Submit' and check EPF withdrawal status.

From the write-up mentioned above, individuals can get a comprehensive guide on EPF withdrawal. Read the steps attentively and note the important details, and you can withdraw EPF without any hassle.

What Are EPF Tax Rules?

EPF is a EEE tax rule. Therefore, it is exempt from tax on EPF withdrawal. Further, contributions and interest received are also exempt from tax. However, there are some cases where EPF is taxable. These are:

It is taxable if an employer's contribution to the Employees' Provident Fund exceeds ₹7.5 lakhs in a financial year. An employee is liable to pay tax on an amount that exceeds ₹7.5 lakhs.
If an excess contribution from the employee's side to the EPF account exceeds ₹2.5 lakhs in a financial year, then the interest earned on this extra amount is taxable.
If there is no employer contribution to an EPF account, which is the case for government employees, then the interest will be tax-exempt up to ₹5 lakhs in a financial year.
Interest earned on inactive EPF accounts is taxable in the employees' hands.
Withdrawal from the Employee Provident Fund account is tax-exempt except when withdrawal happens after less than 5 continuous years of service. And if any withdrawal amount exceeds ₹50,000, then TDS is applicable at the rate of 10%. However, withdrawals can be exempt in an employee's poor health, closing of a business or other events beyond the person's control.

Frequently Asked Questions

✓ Can individuals withdraw EPF balance while working?

No, individuals cannot withdraw their EPF balance while working. However, certain circumstances allow partial EPF withdrawal.

✓ Does an individual require an employer's sanction for EPF withdrawal?

No, an individual does not require an employer's sanction for EPF withdrawal.

✓ Can I withdraw the 100% EPF balance?

You can withdraw 100% EPF balance only after your retirement.