April 26, 2023

EPF Form 19 & How to Fill PF Withdrawal Form 19 for Final Settlement

How to Fill Out Form 19 for Withdrawing PF: Advantages & Limitations

Employee Provident Fund is a retirement benefits savings plan for workers in India who are employed in corporate settings or the organized sector. For all employees, whether they work for the government, the public, or the private sector, the EPF is one of the primary savings avenues.

All industries that employ 20 or more people are eligible for PF account benefits. The Employees' Provident Fund & Miscellaneous Provisions Act of 1952 established this social security program.

During the employment period, the employee and the employer should contribute a portion of the income, with the employee having the option to withdraw all or part of their pay under certain conditions as outlined by this act.

What is Form 19 in PF?

Whenever a member wants to go for a form 19 PF final settlement of PF Form 19 needs to be filled out for each person's PF account. Employees without a Universal Account Number are subject to it (UAN). The member only needs to provide their PF account number when filing PF Form No. 19 without a UAN.

Use this form to receive pension withdrawal benefits or to request a form 19 PF final settlement of the PF account. Numerous PF forms are available, each with a distinct function. To achieve the desired results, these forms must be properly completed and submitted to the EPFO. The Employee Provident Fund Organization Portal, which can be accessed using the UAN or Universal Account Number, contains all forms.

Examine the various EPF form types, each serving a different function.

Form 2: Form for declaration and nomination.
Form 5: New workers enrolling in EPF.
Form 10C: Withdrawal of pension.
Form 10D: Application for a pension withdrawal after retirement.
Form 11: EPF account transfer automatically.
Form 13: Account transfer for EPF.
Form 14: Withdrawal to support LIC policy.
Form 19: Withdrawal of EPF.
Form 20: EPF withdrawal in the event of a member's passing.
Form 31: Advances/Withdrawal.
Form 51F: Claim made after a member's passing.

Employees Who Do Not Have a UAN Should File Form 19 for PF Claims

Employees without a UAN are permitted to use the PF Claim Form 19. Employees who made PF contributions after 2014 received UANs from the EPFO. The nearest EPFO branch can provide a UAN to employees who only decided to make PF contributions before 2014.

PF Claim Form 19 can indeed be submitted using the PF A/C No. without a UAN. Every employee with a PF A/C is advised to combine their accounts by establishing a UAN.

Employer's Certification

Employer's Form 19 PF claims must be attested by the employer. A certified copy of the opening page of the employee's bank passbook or a duplicate of a cancelled cheque is needed to confirm the employee's bank account, which will be used to withdraw PF benefits.

Once the application is completed, signed, and sanctioned by the employer and the employee, it can be submitted to the nearest EPFO office.

Withdrawing PF TDS

After submitting their application, the employee can use the missed call feature, the PF website, or the UMANG app to check the status of their PF claim. If the member provides a PAN, TDS will be deducted at a rate of 10% from form 19 for PF withdrawal.

If neither is provided and the service is not more than five years, TDS will be deducted at a rate of 34.60%. If the remaining balance is less than INR 50,000, no TDS will be applied.

Important Things to Keep in Mind When Filling Out Form 19

The form can be completed only two months after leaving a job or when retiring.
For final payment, the employee must provide their mobile number.
The form can be completed offline or online (at the EPF Member Portal).
PAN is required for claiming form 19 PF final settlement as well.
The employer's signature and company seal are required for the offline settlement process.

EPF (Form No.)	Form – 19
Objective	Final agreement
Link	https://epfindia.gov.in/site_docs/PDFs/Downloads_PDFs/Form19.pdf
Eligibility	Those existing workers who want to terminate their EPF accounts.
Completing the Form	Offline as well as online
When will it be completed	After leaving the company for at least two months

How Can PF Form 19 be Downloaded?

PF Form 19 download can be accessed from the EPFO website by entering your Universal Account Number (UAN), password, and captcha. After logging in, select "Claim (Form - 31, 19 & 10C)" under the "Online Services" tab. After doing so, click "Verify" and enter the last four digits of the bank account number connected to the provident fund account.

How to Fill Out Online PF Form 19?

Step 1: Use your Universal Account Number (UAN), password, and captcha to log in to the EPFO website.

Step 2: Select "Claim (Form - 31, 19 & 10C)" from the "Online Services" tab after logging in.

Step 3: Click "Verify" after entering the last four digits of the bank account number associated with the provident fund account.

Step 4: For the "Certificate of Undertaking" pop-up, select "Yes."

Step 5: Then, under "I want to apply for," choose "Only PF Withdrawal (Form - 19)" from the drop-down menu.

Step 6: Check the disclaimer page once it has appeared, then select "Get Aadhaar OTP" from the menu.

Step 7: The OTP will be sent to your mobile number on file. To verify, type it in.

Step 8: You will be given a reference number for completing the process once the submission is complete.

Step 9: The required amount of PF will be deposited into the member's bank account after the employer approves the request.

Circumstances for Online Submission of Form 19

You must activate your UAN at the EPF member portal before logging in.
Your bank account and PAN are legally required to be connected to your UAN.
Your mobile number ought to be connected to UAN as well.
Form 19 in PF won't be displayed on your withdrawal form if you are not eligible for final settlement. However, Form 10C will be present if Form 19 in PF is an option.

Advantages of Form PF 19

The employer's attestation is not required when submitting claims for provident fund withdrawals using the online PF Withdrawal Form 19
Additionally, provident fund claims can be processed in as little as 5 days after submitting an online application.
The form is simple to comprehend. You can save time and work by using the online service.
You can complete the entire process without leaving the comfort of your home.
Within a week of submitting the online application, the process is finished. You should be aware that the member's UAN and Aadhaar number must be connected.
Through a single platform, members can conveniently withdraw provident funds. Additionally, the one-page form streamlines the procedure and makes public services accessible and effective for subscribers.

PF Form 19 Limits

The form 19 PF final settlement can only happen after the employer has updated the member's exit date, even though employer attestation is no longer necessary for a member to withdraw provident funds. If it is not updated, the provident fund department may believe the member is still employed by the employer, making the withdrawal process more difficult.

The only form the member can use in this circumstance is Form 31, which is for an advance refund. It is the member's responsibility to make sure the employer updates the exit of service.

However, only two months after leaving their job can a member update their departure date on the UAN website without their employer's involvement.

How to Check the Status of a Claim

Another approach can be used to determine the status. The steps in this process are as follows:

Go to the EPFO Unified Official Portal. To log in, enter your UAN number, password, and captcha.
Then select "Track Claim Status" from the menu under "Online Services."
You can now see your claim's status.

PF Withdrawal Rules Taking All Factors into Account

Standard Rules

It is advised to avoid advance withdrawal because the EPF's main goal is to invest money for employee retirement.
EPF withdrawals made before five years of service are taxable, so the amount credited to your account may be reduced.
When you join a new company, you can transfer your EPF balance to the existing account instead of opening a new one. This will reduce paperwork and continuously maintain the activity of your PF account.However, the balance that the current employer contributed makes it impossible to withdraw (until minimum service tenure criteria are fulfilled).

Earlier Than 5 Years of Service

Anyone may withdraw their EPF before five years of service, but if their balance is more than INR 50,000, TDS will be deducted. To meet this PF withdrawal requirement, the employee must provide the most recent ITR forms 2 and 3, along with a detailed summary of the PF deposits.

Your EPF deposits will be comprised of the employee share, employer contribution, and interest (which could be around 8% annually) earned on each deposit. The ITO department will suggest taxes once the EPF withdrawal application has been revalued (if eligible).

Claim your exemption in accordance with Section 80-C if you want to avoid paying taxes. Otherwise, nothing will change.

When You’ve Retired

After retirement, one must claim the final payout. If one has faithfully served for more than 10 years in the current organization, one may also receive an additional benefit of the EPS amount. They are permitted to withdraw the EPF balance and the entire EPS amount.

Retired workers who have completed ten years of service with the current organization are eligible for a pension and additional financial compensation.
The EPF corpus can be withdrawn tax-free, but the interest earned is subject to taxation.

The interest accumulated on the pension fund balance will be taxable if not withdrawn for the following three years after retirement.

For a Wedding or Further Education

For a child's higher education (after matriculation) or the marriage of a family member who is financially dependent on you, such as younger siblings or children, only 50% of the PF amount may be withdrawn.

This benefit may be used three times throughout one's lifetime. Withdrawal will require proper documentation, a certified copy with course information and cost (if for education), or member declaration in form 31.

Loans for Homes

After three years of service, registered EPF members are eligible for financial assistance through a PF advance. The maximum limit of the advance amount is 90% of the corpus and can be used to pay off a mortgage or as a down payment when taking out a mortgage, according to Paragraph 68-BD of the EPF scheme (1952).

A minimum PF balance of INR 20,000 is required, either on an individual basis or when the spouse's PF balance is added. It is only possible to benefit from the PF withdrawal policy once in a lifetime for this purpose. Additionally, it applies to houses with subsidized costs financed by the Pradhan Mantri Awas Yojana (PMAY).

The following requirements must be met to obtain a home loan using EPF:

Should belong to a housing society with at least 10 members.
The Commissioner's certificate of PF contributions and the composite claim form should be present.

In Certain Situations

Lockdown lasting longer than 15 days or longer than two months without pay: The employee's contribution and any interest accrued may be withdrawn from the PF account. You must submit Certificate Forms A and B.
They ask the judge to dismiss the member who they are contesting: To a certain extent, employee shares, and their interest can be withdrawn. The required documents are a copy of the petition and written confirmation from the member that the case is still pending.

Regarding Medical Care

Anyone may make a planned withdrawal from PF for medical treatment (for themselves or a family member). The highest amount allowed is 6 times the monthly income plus DA or employee share plus interest (whichever is lesser).

For EPF withdrawal, submit certificate C, which your employer and treating physician have properly signed.

Conclusion

When retiring or changing jobs, employees must complete PF Withdrawal Form 19 in full and final settlement of their EPF corpus. They must also complete the form to transfer their EPF balance from one account to another. Both offline and online modes can be used to complete EPF Form 19.

The member will receive their withdrawal amount between 15 and 20 days after submitting the EPF Form 19 in its final form. If you have retired or left your job, you are qualified to receive your entire PF account payout. But there are some rules and restrictions.

The government made the PF a requirement for the working class, especially salaried people, and it is a simple but crucial program. It supports your continued financial stability and independence during your retirement years.

PF also encourages individuals to save money in a disciplined manner, which they can use for emergencies. One of the safest financial instruments, it guarantees a return without risk.

Frequently Asked Questions (FAQs)

How long will it take to settle a 19?

Within 15–20 days of submitting the EPF Form 19, the member will receive their withdrawal amount.

Can I request the EPF settlement money by check?

You can submit a check to receive the EPF settlement amount. The following information must be included on the form itself:

Amount of EPF withdrawal
Rupee one revenue stamp
The applicant's signature

What happens if Form 19 is utilized to withdraw the entire EPF balance, but Form 10C is not utilized to withdraw the EPS?

The money in your PF account stays the same if you have a total service history of fewer than 10 years. Use form 10C to submit a claim for the EPS amount at any time. Through the UAN Member e-Sewa Portal, the claim can be submitted offline or online.

If you have accumulated more than 10 years of service, you are not eligible to request an EPS withdrawal. Once you reach the age of 58, however, you will be qualified for an EPS pension.

What are acceptable grounds for leaving the service?

If an employee requests a final settlement, the reasons listed in item A are considered valid. These justifications must be provided for offline withdrawals. The following reasons/points are absent from the withdrawal form for online withdrawals:

The member's ill health
Contraction/discontinuation of the employer's business
Other causes beyond the member's control
Own reasons

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