PF Withdrawal Rules - Online Process, Login, Status, & Limit

Employee Provident Fund is a mandated retirement and savings program. The employee contribution and the employer contribution make up the EPF. In 2022, there will be several changes made concerning PF withdrawal. These changes are intended to make it simpler for subscribers struggling financially due to the coronavirus outbreak to access their PF money. 

The new regulations provide that holders of PF accounts may withdraw up to 75% of their net PF or EPF account balance or an amount equal to three months' worth of their basic pay + dearness allowance, whichever is less. We'll consider this to be a non-refundable deposit. One can file these withdrawal claims online. Resolving offline claims might take up to 20 days, whereas, In 3 working days, online claims are easily resolved.

This article will discover multiple PF withdrawal rules along with a few important topics.

Withdrawal System Under the Provident Fund Rules of 2022

The provident fund's balance is intended to be withdrawn whenever a worker or individual retires. Nevertheless, there are guidelines for provident fund withdrawal accounts. It is possible to withdraw and use the collected money in an emergency.

Any employee or person can open three distinct types of accounts in the Employee Provident Fund. Which are:

• Final settlement for the Provident Fund
• Partial withdrawal from the Provident Fund
• The benefit of pension withdrawal

Any person or employee may take a portion of their PF balance before the fund achieves its maturity if certain conditions are met. The following situations will allow an individual to remove funds from their PF account prematurely.

PF Withdrawal Rules in 2022

Unemployment

People often think about how to withdraw the full PF amount after leaving a job. However, any Provident Fund account holder who has been jobless for more than a month is only permitted to withdraw up to 75% of the account's total balance. The employee may take the last 25% portion from the PF account if the jobless last more than two months.

Education Objectives

The second PF withdrawal rules is education objectives. After passing the tenth grade, Provident Fund account holders are duly permitted to withdraw about 50% of their total employee contributions from their individual Employee Provident Fund accounts to further their education or pay for their own children's education. The Provident Fund account will become transferable after seven years of contributions.

Marriage Compensation

The provident fund account holders could take almost 50% of their total sum under the present criteria for withdrawals to cover their wedding costs.

The account holder, their son, brother, daughter, or sister are all eligible to marry. Accordingly, for educational reasons, the account holder must have paid into their provident fund account for at least seven years before withdrawing money for marriage.

Withdrawal In The Case of People With Special Needs

Another PF withdrawal rule is for specially-abled people who can take money out of their EPF account to pay for their gear per the revised provident fund withdrawal guidelines for 2022.

They can take up to six months of basic pay plus DA, dearness allowance, or the employee's portion with interest (whichever is considered less).

This new restriction has been implemented for PF withdrawal in 2022 to reduce the financial strain of buying pricey equipment for those with special needs.

When a Medical Emergency Arises

One can also take money out of PF or EPF accounts to pay for unexpected medical costs and bills. Therefore, individuals can spend the cash on themselves or their close relatives.

Additionally, they are qualified to get a base salary of six months combined with a dearness allowance, or DA. Alternatively, you can choose to receive an employee's share of interest (whichever is considered less).

To Settle the Outstanding Obligations

In case someone wishes to repay their house loan via EMIs, they may take 36 months' worth of basic pay plus a depreciation allowance or the total of the employee and employer contributions in addition to interest. However, one can not avail of this service until they've made EPF contributions for at least ten years.

For Acquiring Residential Houses and Land

Employees may undertake a premature withdrawal per the Provident Fund withdrawal guidelines to purchase vacant land or prefabricated homes. The EPFO has fixed a pf withdrawal rules in this particular instance.

The maximum withdrawal from the collected money of the PF account in this instance is the basic pay for 24 months plus dearness allowance (employee and employer's share combined).

For Remodeling a Home

One of the 2022 PF withdrawal rules is remodeling a home. The new Provident Fund regulations include a provision allowing workers to take their basic pay, a 12-month dearness allowance, and their portion (and interest) to upgrade, enlarge, or repair their homes.

Employees may be the property's sole owner, co-owner, or spouse. After holding the property for at least five years, anyone or any employee may use this amenity twice. Not to add that before the money may be withdrawn, the person or employee must contribute for at least ten years.

The person may also withdraw around 90% of their entire accrued savings after turning 54, or one year before retirement, under the amended EPF guidelines. If an employee passes away unexpectedly (while they were still employed), their nominee or beneficiary may submit an application for settlement using Form 20 or Form 10D to request a monthly pension.

The employees and people have adequate flexibility when an emergency arises, thanks to the new and improved PF guidelines.

 Note: Note it would be necessary to highlight that the Employees' Provident Fund Organization has assigned UANs, making them mandatory for all employees covered by the PF Act. The EPF account of the employee should be connected to the UAN. There is no requirement to submit an EPF transfer application while changing employment because the UAN is transferable for the duration of an employee's career.

 Procedure for Withdrawing EPF

Generally speaking, one can withdraw EPF by applying:

• Application physically
• Using a website

Physical Application 

To withdraw the EPF balance, download the most recent Composite Claim Form (Aadhaar)/Composite Claim Form (non-Aadhaar).

Form of Composite Claim (Aadhaar)

• If your UAN is operational and you have registered your Aadhaar and bank data on the UAN portal, use the Composite Claim Form (Aadhaar).
• Fill up the form and deliver it to the appropriate jurisdictional EPF office, even without the employer's signature.

Form of Composite Claim (Non-Aadhaar)

• In the event that the Aadhaar and bank information are not registered on the UAN portal, you may utilize the Composite Claim Form (Non-Aadhaar).
• Fill out the form and submit it to the appropriate jurisdictional EPFO office, together with the employer's attestation.

One may also observe that, in recent times, the necessity to provide numerous certificates has been relaxed, and the choice of self-certification has also been initiated for EPFO users in the event of partial withdrawal of EPF portion by an employee for adverse contexts, as mentioned above. 

Online Application

The EPFO has created an online withdrawal option, which has made the procedure more convenient and quick.

Basic requirements:

• Make sure the basic requirements are all satisfied before applying online through the EPF site for the withdrawal of EPF:
• The mobile number used to activate the Universal Account Number (UAN) is functional, and the UAN has been activated.
• KYC, which includes Aadhaar, PAN, bank information, and IFSC code, is now connected to the UAN.
• The prior employer does not have to vouch for the withdrawal request if the requirements above are satisfied.

How To Withdraw the PF Online Via UAN Portal?

As per the new PF withdrawal rules, the followings are the ways you can incorporate to draw PF amount online:

Step 1: Go to the UAN portal

Step 2: Enter the details like UAN, password, and CAPTCHA. Proceed with the sign-in option.

Step 3: To see whether the KYC information, including Aadhaar, PAN, and bank data, has been confirmed, click the 'Manage' button and choose 'KYC.'

Step 4: After the KYC information has been validated, choose 'Claim (Form-31, 19 & 10C)' from the drop-down box under the 'Online Services' heading.

Step 5: The next screen shows the member, KYC, and other service information. Click 'Verify' after entering the number for the bank account.

Step 6: Select 'Yes' to affix the signature to the certificate of the undertaking, and then go on.

Step 7: At this point, select 'Proceed for Online Claim.'

Step 8: Select the type of claim they need on the claim form, whether it's a complete EPF settlement, a partial EPF withdrawal (loan or advance), or a pension withdrawal.

Step 9: Select 'PF Advance (Form 31).'

Step 10: Select the certificate and finish submitting the form.

How to Log In, Log Out, and Withdraw Funds Out of the PF Account

They may not have indicated the exit date, which may be one of the causes of the postponement of the PF account withdrawal. The Employees Provident Fund Organization, or EPFO, has designed a particular function in its unified site that allows employees to independently record the date they left their prior employment to prevent this problem.

Before, only employers could enter the employee's exit date, but now the employee can do the same.

They can enter the exit date by logging in to the UAN site with their Universal Account Number (UAN) account number and password. However, checking the exit date before entering it manually is imperative.

To input the exit date, follow the procedures listed below:

• Use the UAN account number and password to log into the account on the UAN website.
• Choose 'Manage' from the top panel, then click 'Mark exit.'
• Choose the employer from the drop-down option at this point.

Afterward, they will be redirected to a new page where they must input the dates they joined the firm, their birth date, and when they left. One can use the same date on the resignation letter if their leave date falls before the 15th of any month.

Reducing Taxes on EPF Withdrawals

Any EPF account holder might lessen their tax obligations on early PF fund withdrawals. Normally, TDS may be duly deducted from withdrawals from PF accounts; however, under the new EPF regulations for 2022, TDS will not be taken from withdrawals made after at least five years of service.

One may already transfer the EPF account utilizing a UAN number. EPF is a contribution-based government savings program. The revised EPF withdrawal restrictions have improved the system's benefits for those who serve in the organized and private sectors.

How Can You Withdraw EPF Funds Without a UAN?

You must complete and submit the PF withdrawal form to the regional provident fund office. Additionally, the alpha-numeric Provident Fund Account Number, which displays your state and location from your pay stub, makes it simple to determine the jurisdiction of your PF office.

You must provide identification attestation from a bank manager, magistrate, or gazette officer as part of the outdated PF withdrawal procedure.

Frequently Asked Questions (FAQs)

Q1. Is it possible to receive EPF benefits without logging into the EPFO Portal?

Yes, it is possible to collect EPF benefits without using the EPFO Portal. One will need to obtain a Composite Claim Form, fill it out properly, and submit it in order to do so offline.

Q2. Is a PAN needed to withdraw money from an EPF?

A PAN is necessary to withdraw or settle EPF money to prevent tax deductions. In the event that your PAN is not submitted, tax deducted at source (TDS) could be as high as 30%.

Here is how to link your PAN card to your EPF account.

• Use the UAN number and password to log into the EPFO UAN Member e-Seva Portal.
• Select "Manage > KYC" from the top menu.
• You will be taken to the "Add KYC" page, where you can amend a list of documents under the heading "Document Type."
• Choose "PAN" > "PAN Number" > "Name as printed on your PAN card" > "Save"

Your PAN is instantly confirmed if the name and number match the data held by the Income Tax Department.

When your PAN has been properly linked to your EPF account, you may locate it in the "Member Profile" table on the website's front page.

Q3. When does a withdrawal from an EPF become taxed?

You would be liable to a 10% TDS deduction if you draw your EPF money before the 5-year window. However, your EPF is tax-free if you draw it after five years of uninterrupted employment.

The EPFO website lists the following situations in which TDS will not be taken from an EPF contribution:

• Money being moved from one PF account to another.
• A member's employment may be terminated for any cause, including illness, the employer's desire to discontinue operating, completing a task, or any other event beyond their control.
• if an employee withdraws their PF five years after joining.
• If the member has fewer than five years of employment, but the PF contribution is less than Rs. 50,000.
• If a worker with less than five years of service withdraws more than Rs. 50,000 but still provides Form 15G/15H and PAN.

Q4. What should a member do if he discovers that the information about his prior employment listed in the EPFO database is wrong?

Suppose a member discovers that the info about his prior employment in the EPFO database is inaccurate while submitting an online transfer claim. In that case, they can select the "The following information is wrong" button.

Editing would be possible in the fields. Upon providing the correct information in the required fields, the user must print out the created letter (in PDF format), sign it, and submit it to the applicable EPFO office via the prior employer. 

The online claim can be made with the updated information until the relevant office has corrected the information after receiving the letter. Any online claim that is submitted before the correction will only contain the data that is currently accessible. The member can also submit the physical claim via the employer.