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October 29, 2018
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EPF Payment, PF Withdrawal And Transfer Procedure using EPFO Portal

Last Update Date : October 29, 2018

Online EPF Payment

What is Employee Provident Fund?

The Employee Provident Fund (EPF) is a retirement benefit given to all salaried employees and the fund is maintained by the Employees Provident Fund Organisation (EPFO) of India. So, any company with over 20 employees is expected as per the law to register with the EPFO. The Employees Provident Fund Organization (EPFO) is under the direct jurisdiction of government and is managed through the Ministry of Labor and Employment.

How to Withdraw PF?

You need Form no 19 for withdrawal of your EPF and Form no 10C for withdrawal of your EPS. According to old PF laws, you can only opt for entire withdrawal/transfer in case you change your job and get transferred to new employer’s PF account. Entire withdrawal is allowed only if you are unemployed for minimum 2 months.

Note: It has also been proposed that interest-free partial withdrawals may be allowed for the account holders who are unemployed for longer than two months.

Based on the revised PF laws, you can also opt for PF withdrawal if you want to buy a house, repay home loan, require funds for kids’ marriage, kids’ education, and others as specified in the law. For withdrawal procedure, you need to fill up the new composite claim form wherein you need to correctly enter the details of UAN, date of joining/leaving, and purpose of withdrawal.

Valid Reason for PF Withdrawal

You need to select one reason, for the withdrawal, from the following:

  • Repayment of housing loan/ purchase of site/ house/ flat or for construction/ addition, modification in existing house/ repayment of housing loan: In such case, declaration form is not required wef February 2017 certificate from the agency (financial institution or bank) is required stating outstanding principal and interest.
  • Treatment of illness: you need to submit a medical certificate C signed by the doctor and the employer stating that ESIC facility is not accessible to the member so he can go ahead with PF withdrawal
  • Funds for marriage of self/kid/sibling: a members’ declaration is required in Form 31
  • Post-matriculation education of children: need to submit a certificate regarding course of study and estimated expenses from head of institution
  • Purchase of equipment (for physically handicapped members): a medical certificate from doctor is required

Remember that if you have just one year left for retirement, you can withdraw 90 percent of your total PF balance and at that time you need not to submit any documents for the same.

EPF Withdrawal and Transfer Forms

For transfers and withdrawal of your EPF, you will need to fill out the required form from the following list of forms, which can be found on the EPFO website:

  • Form 2:  The common form used for both pension and pf schemes for payment of fund amount to nominees.
  • Form 13: Used when transferring PF
  • Form 19: Used when withdrawing EPF
  • Form 10C:  Used when EPS (pension scheme) is being withdrawn

Recent Update in EPF Withdrawal: On June 26th, 2018 the EPFO made a slight modification to the withdrawal rules.  To help those who have lost their jobs, an account holder can now withdraw 75% of the PF funds in his/her account after one month of unemployment.  Previously, if an account holder was unemployed for longer than 2 months, he/she could withdraw the entire amount to meet his/her requirements. 

The remaining 25% can be withdrawn after two months and the account would be closed.  A new account can be opened once the individual starts working again.

Modes of EPF Withdrawal

There are two options for EPF withdrawal available to the employee –

  • Physical application submission
  • Online application submission.

PF Withdrawal via Physical Application Submission

  • Physical application can be filled and submitted to the respective jurisdictional EPFO office.
  • The new claim form where PF is linked with Aadhaar doesn’t need the employer’s attestation whereas if Aadhaar is not linked, the form needs to be attested by the Employer.

Offline withdrawal process can be done with or without Aadhaar Card.

Withdrawal of PF using Aadhaar Card

Once your employer has verified your Aadhaar card and salary account details and furnished them in the EPFO’s member portal, your UAN should be activated.  To withdraw your PF, fill out either form 19, 31 or 10c with your details such as name, PAN, mobile number etc. and attach a cancelled cheque, which the EPFO will verify.  Submit the form and cheque to the nearest office.  The bank information given should match the one listed in the UAN database.

Withdrawal of PF without Aadhaar Card

The process of withdrawing your PF without your Aadhaar card can be a cumbersome process.  You must fill out form 19, 31 or 10c and after filling in the required details, get it attested from reliable authority such as a magistrate, manager of the bank of your salary account or a member of the EPFO etc.  Make sure the signatory authority stamps every page with his/her signature.  You will also need to give your reason for withdrawal to avoid fraudulent withdrawal cases.  Attach: indemnity bond with Rs 100 stamp paper, payslips, Form 19, Employee ID card, appointment letter and KYC documents (ID and address proof) to the EPF office.

Note: An EPF account where no contributions (no activity) have been received for 36 or more months continuously is considered as an ‘Inoperative EPF Account.  For such users, the EPFO has created a helpdesk on its website to trace their inoperative accounts, which the member can get merged with the present account or withdraw the amount, as may be the case.

EPFO was earlier not paying any interest on this type of account. However, in November 2016, the law was revised, now such accounts are also credited with due interest at the rate of 8.55%.

PF Withdrawal via Online Application Submission

You can also opt for withdrawing PF online in certain cases.

Eligibility for Withdrawing PF Online

All registered employees/members can use the online services for pension and PF withdrawals after they satisfy the below requirements.

  1. The member’s Universal Account Number (UAN) and mobile number used to activate UAN should be active (refer to the picture below). UAN is the unique number allotted for all its employees who are registered under EPF scheme.
    How to withdraw PF
  2. The Aadhaar details of the member should be entered in the EPFO database and should have access to OTP-based facility for verifying online KYC details from UIDAI (Unique Identification authority) while submitting the claim.
  3. Also the bank account details of the Member including the IFSC code should be entered in EPFO database.
  4. With respect to PF final settlement claims, Permanent Account Number (PAN) should be keyed in EPFO database in case his/her service is less than 5 years.

Steps to Withdraw PF Online

To withdraw your funds from your EPF account online, simply follow the mentioned steps:

  1. Login to the UAN portal using UAN and Password.
  2. Click on ‘Manage’ tab and ‘KYC’ to verify the details like Aadhar, PAN Number, Bank account details and make changes in case necessary.
  3. After verifying the details, go to ‘Online Services’ tab and then ‘CLAIM’ from the dropdown menu.
  4. Click on ‘PROCEED FOR ONLINE CLAIM’ tab to submit your claim form.
  5. On the Claim Form, select the claim like PF withdrawal or Pension withdrawal under the ‘I want to apply for’ tab. One important point to note is that in case of non-eligibility, the options will not be displayed on screen.
  6. A relevant Form will be displayed as per the category selection to fill up the details.
  7. Last step is to authenticate the form using Aadhar OTP to complete the online claim submission.
  8. The status can be tracked by selecting ‘ONLINE SERVICES MENU’ and ‘TRACK CLAIM STATUS’ tab until you get the amount in your account.

Deduction of TDS on PF Withdrawal

EPFO deducts TDS in cases where withdrawal amount is more than Rs 50,000 or the Employee has not completed the total 5 years of continuous service. The 5 years of service should be continuous employment with same or multiple organizations without any gap and with no withdrawals made by the employee between switching the companies.

However, there are some exceptions to the EPF withdrawal rule as below:

  1. The TDS amount deducted will be 10% instead of 34.6% if the employee has submitted the PAN number
  2. Form 15G/ 15H has been submitted by the employee
  3. The rule of TDS is not applicable in case the service termination is beyond control like lock-out, medical condition etc.

Tax Implications on EPF Withdrawal

Employee’s Provident Fund enjoys many tax benefits. The investment in EPF depending on the tax slab can provide tax benefit up to 30%.  An employee’s contribution to EPF is eligible for tax deduction under section 80C.  Respectively, the employer’s contribution to EPF subject to 12% of employee’s basic salary + DA along with Interest is tax exempt.  In case any member makes the withdrawal of EPF balance before 5 years, all the tax savings would become Null and Void and he/she must return the exemptions claimed u/s 80C.

Tax on Withdrawal Prior to 5 Years

If an individual withdraws the funds in his/her EPF account prior to five years, for example after 3 years of contribution, then the exempted taxes will be added back to his/her income for each relevant year and the total taxes found owing shall be payable at the year of withdrawal, even if the individual’s income is below the taxable limit.

Online PF Transfer Process

It can happen that an employee will switch jobs several times over the course of his/her career lifespan.  The procedure to transfer your EPF account to the present employer can now be easily down by following these simple steps:

  1. Log in to the EPFO members’ portal with your UAN and password.
  2. Select the option ‘Online Services’ and then select ‘Transfer Request’ to generate an online transfer request.
  3. Once you click on ‘Transfer Request’ option and all your details will be shown like EPF Number, Date of Birth, Date of Joining etc.
  4. After verifying your personal details, go to Step 1 where you need to provide the details of the previous employer. But before that you need to select – previous employer or present employer – through which you want to get the attestation done on the claim form.
  5. Once you enter the details of previous employer and click on ‘submit’, an OTP will be sent to the registered mobile number. After you verify your identity by entering the OTP, the request will be submitted and an online filled-in form will be generated. You need to sign the form and send it to your present or previous employer.
  6. Please note that an online notification will be sent to the employer about the EPF transfer request. Once the employment details are cross-checked, the employer would send the claim to the EPFO office, which will process the claim.
  7. After submission of online request, the status of your EPF transfer claim can be checked through the option ‘Track Claim Status’ menu, which is under the ‘Online Services’ menu.

List of Banks Specific Payments

Kindly click on the relevant banks to know the bank specific procedure of making EPF payment.

SBI ICICI HDFC
Kotak Mahindra PNB

Note:  Recently ‘Umang’ app was introduced by the IT and Electronics Ministry that has different services in it like Gas booking, Aadhar, NPS along with checking your EPF details.

How to make EPF Payment Online?

For employers contributing their portion to an employee’s EPF account, the monthly payments can be easily made by following the below-mentioned steps:

  • Step 1: On the Unified web portal of EPFO (use your ECR portal credentials), login and check to ensure the details mentioned, such as PF code, address, status etc. are correct.
  • Step 2: To upload ECR, select “Payment”
  • Step 3: From here, select the option “Wage month” and “Salary Disbursal Date”.
  • Step 4: The format of your ECR file can be viewed from the “ECR Help File” option shown on the screen.
  • Step 5: For the relevant “Wage Month”, select the ECR file that will be uploaded.
  • Step 6: Ensure you select the Rate of Contribution, which will be either 12% or 10% and upload the file.
  • Step 7: As per the pre-set conditions, if the uploaded file is validated successfully, you will receive the message, “File Validation Successful” and a TRRN will be generated.  Else an error message will be displayed.
  • Step 8: Next, to generate the ECR summary sheet, select “Prepare Challan” and enter Admin/Inspection charges for a/c no. 2 & 22.  Note: EDLI Contribution can be edited also selecting to generate the challan
  • Step 9: After editing, verify the amount on the challan and select “Finalize”.  Make sure to keep a record of the acknowledgement number and receipt file of the challan in process.
  • Step 10: Now that your challan is ready, click on the “Pay” option.
  • Step 11: Select the online payment option and select “Continue” after selecting your Bank from the list of banks mentioned.  You will be redirected to the payment gateway to complete the payment process.

People also ask

Q. What is the eligibility criteria for the EPF scheme?

A. Anyone who is part of any covered establishment (where 20 or more persons are employed) on or after 16/11/1995 where the income is less than Rs 6,500 per month as per appointment date.

Q. What is Salary?

A. Salary in this context would be BASIC + DEARNESS ALLOWANCE(DA).

Q. Who deposits the amount to EPF scheme?

A. All companies or organizations that deduct the contribution towards PF from their employees must deposit the amount with their Trust or EPFO. This would be continued as long as the employee is employed at the organization.

Q. Is nomination mandatory?

A. All members are supposed to nominate an individual for their EPF. Nominees can be family members (spouse or children). There can also be multiple nominees where the percentage share has to be mentioned by the member. In case the member doesn’t have any family members then they can nominate as per his/her choice. Also, where there is no nomination made, the benefit will be paid to dependent parents.

Q. How can you receive EPF withdrawals?

A. The amount would be credited to the member’s bank account directly.

We hope that you found this guide helpful and it answered all the questions you had regarding PF withdrawal and transfer.

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