A Provident Fund (PF) account is a retirement savings scheme managed by the Employees’ Provident Fund Organization (EPFO) in India. Both employers and employees contribute to the account, and funds earn interest.
Individuals can better plan their finances by keeping a check on their PF balance. The process of withdrawing money from a Provident Fund (PF) account is typically straightforward, but circumstances may arise where an individual needs to withdraw funds from their account twice. Examples of such situations include job loss, medical emergencies, or other unforeseen financial needs.
This article will cover the necessary steps involved in withdrawing funds twice from a Provident Fund account and highlight the relevant rules and regulations.
When is Withdrawal From the PF Account Permissible?
PF amount withdrawal is permissible under conditions such as:-
- Purchasing or building a home or apartment
- Loan repayment in some circumstances
- Sickness treatment in certain situations
- Marriages, children’s post-high school education, and
- Withdrawal up to one year before retiring
To access the PF money, one needs to be a member of EPFO for at least the past seven years if withdrawing for marriage, post-matriculation education of a child, or for oneself. It is allowed to take out up to 50% of employee share with interest, up to three times for these situations.
Documents Required for PF Withdrawal!
To ensure an effective PF withdrawal process, the following points should be considered:
- A UAN (Universal Account Number), provided by the employer.
- The bank account details must match the EPF account holder’s name and should be in the holder’s name
- All data relating to the holder should match the verification evidence.
- The employer should submit this information to the EPFO and officially notify the employee’s exit, including accurate joining and leaving dates.
How to Apply for PF Withdrawal?
Before applying, perform a PF balance check just to make sure the correct amount is transferred. Here are the steps to apply for a PF withdrawal:
Step 1: Enter UAN and password to access the EPF member site.
Step 2: Choose “Claim (Form-31, 19, 10C & 10D),” which will appear on the drop-down menu under the Online Services header.
Step 3: Member information, KYC information, and all other service information that will be asked for on the screen. Input the bank account number (as seeded against UAN) and press the “Verify” button.
Step 4: Click “Yes” to sign the undertaking certificate, and then continue.
Step 5: Now, choose “Proceed for Online Claim.”
Step 6: In the “I Wish to Apply for” section of the claim form, the individual must select the required claim: complete EPF settlement, pension withdrawal, or EPF part withdrawal (loan/advance). If the individual is ineligible for any of these services, they will not find these choices in the drop-down menu.
Step 7: To withdraw cash from the account, go to “Cash Advance (Form 31)”. The employee must Include the purpose of the advance, the exact amount needed, and the bank or credit union from which they’re withdrawing funds.
Step 8: To complete the application process, click on the certificate. Employees need to provide some scanned documents to prove their identity and residency.
After the employer confirms the withdrawal request, the money will be credited to the respective bank account. It usually takes 15-20 days for the money to arrive in the bank account.
How to Perform a PF Balance Check?
Before withdrawing money from a provident fund account, one can conduct a PF balance check. This helps to monitor the progress and keep a track of withdrawals. PF balance checks can be easily done online and offline.
There is no need to submit any documents for the PF balance check. Anyone can simply log onto the EPFO portal or call or message their EPFO account no.
Taxation on EPF Withdrawal!
- If EPF withdrawal takes place within 5 years of service, a tax will be imposed.
- Tax Deducted at Source (TDS) will be 10% if the Permanent Account Number (PAN) is provided, and 34.608% if the PAN is not provided.
- However, if the amount withdrawn is less than Rs. 50,000, no TDS will be taken.
TDS is not Applicable in the Following Cases:
- TDS doesn’t apply if employment ends involuntarily, such as through insolvency, layoff, or retrenchment.
- TDS is not applicable when the service cannot be carried out due to certain medical issues, including physical or mental disability.
Withdrawing money twice from a Provident Fund account is a simple process that can provide emergency funds. It is important to stay knowledgeable and up-to-date on account status to ensure smooth transactions.
Conducting regular PF balance checks is advised to stay aware of the amount saved. Ultimately, understanding the process of withdrawing funds helps one to be in control of their savings.
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