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How To Withdraw EPF Online?

IndianMoney.com Research Team | Updated On Saturday, March 03,2018, 12:12 PM

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How To Withdraw EPF Online?

 

 

What Is EPF?

Employee Provident Fund or EPF, also known as PF, is a Central government backed scheme under which a salaried employee compulsorily deposits a small portion of his / her income each month, with the employer matching the contribution of the employee. Employees deposit 12% of their basic pay + dearness allowance, to the EPF account. EPF is an excellent investment for retirement.

EPF account earns annual interest which is much higher than the interest offered on a savings bank account, FD or even PPF. You get a Universal Account Number or UAN which is linked to the EPF account. UAN is transferable across employers.

The Employees' Provident Fund Organization, EPFO, is responsible for assisting the Central Board of Trustees, a statutory organization framed by the Employees' Provident Fund and Miscellaneous Provisions Act, 1952. EPFO is administered by the Ministry of Labor and EmploymentGovernment of India. EPFO is headquartered at New Delhi, the capital city of India. The EPFO has many regional offices spread across the length and breadth of India.

To earn the maximum benefits of EPFO, you must refrain from premature withdrawal. Withdraw EPF at maturity. However, you can withdraw EPF on some grounds as per EPFO withdrawal guidelines.

Want to know more on Investment Planning and VPF? We at IndianMoney.com will make it easy for you. Just give us a missed call on 022 6181 6111 to explore our unique Free Advisory Service. IndianMoney.com is not a seller of any financial products. We only provide FREE financial advice/education to ensure that you are not misguided while buying any kind of financial products.

Benefits Of Investing In EPF

  • Tax benefits: Investing in EPF offers tax benefits as per Section 80C of the Income Tax Act, up to Rs 1.5 Lakhs a year. The interest earned on EPF is tax free. EPF withdrawals made post 5 years of continuous employment are not taxed.
  • Lifelong pension: Both employee’s and employer’s contribute towards employee EPF. 8.33% of the employer’s contribution goes towards Employee’s pension scheme or EPS. 10 years of contributory membership ensures lifelong pension as per employee’s pension scheme, 1995.
  • Premature withdrawal option: You can withdraw EPF before retirement for various life events like buying a house or land, funding your children’s education and marriage. But, the catch is that if you withdraw before completing 5 years of employment, withdrawals are taxed.
  • Transfer option of EPF account: You can transfer your EPF account to the new employer. Your EPF account is linked with UAN which is transferable at all times.
  • Higher returns: Deposits made in EPF account earn a much higher interest than a normal savings bank account. Currently, EPF is offering a rate of interest of 8.65% a year. EPFO invests 5 to 15% of investible deposits in exchange traded funds, ETFs. Adding to it, EPFO invests 45 to 50% of the deposits in Government securities. Furthermore, 35 to 45% of EPF is invested in debt instruments while 5% in money market instruments and infrastructure trusts.

EPF Withdrawal Rules - How Much Can Be Withdrawn?

To withdraw EPF, you must meet certain eligibility criteria. You can withdraw EPF on the following grounds:

  • Marriage: You can withdraw EPF for marriage expenses, if you are employed for a minimum of seven years. The marriage can be for self, children and siblings. You can withdraw up to 50% of the employee’s share of contribution towards EPF.
  • Education: You are allowed to withdraw EPF for education. For this, you must be in service for at least 7 years. The education can be for self or for the children who have completed at least matriculation. Up to 50% of the employee’s share of contribution towards EPF can be withdrawn for higher education.
  • Purchase Of Land: You can withdraw from EPF for purchasing a piece of land. You are allowed to withdraw up to 24 times of the monthly wage plus dearness allowance, DA. You must be in service for at least 5 years. The land must be registered under your name. You can also be a join owner if not the complete owner.
  • Purchase Or Construction Of A House: You can withdraw EPF citing housing related expenses. You are allowed to withdraw from EPF for both purchasing and constructing a house. You are allowed to withdraw up to 36 times of your monthly wage. You must be employed for at least 5 years to be eligible for EPF withdrawal for purchase or construction of a house. You must be one of the owners of the house (Co-owner).
  • Home Loan Repayment: You are allowed to withdraw from EPF to repay home loan. You must be employed for at least 10 years and the property must be registered under your name. You must submit the ownership documents of the house. You are allowed to withdraw up to 90% from the accumulated EPF corpus.
  • Renovation Of House: You are allowed to withdraw EPF for house renovation. You must be in service for at least 5 years. The property must be registered under your name. You can withdraw up to 12 times of the monthly wage.
  • A Little Before Retirement: You are allowed to withdraw from EPF if you are 57 years or more. You can withdraw up to 90% of the accumulated funds in EPF account.

Eligibility Criteria For EPF Withdrawal:

As mentioned above, you can withdraw from EPF to fund various life events. The table below summarizes various eligibility criteria for EPF withdrawal:

Linking of Aadhaar number with UAN has eliminated the need of employer’s approval for EPF withdrawal. EPFO has issued UAN for all employees who have enrolled under EPF post 2014. EPF claim Form 19 is necessary for those employees who don’t have UAN. Those employees who don’t have UAN can contact regional EPFO offices for issue of UAN.

EPF Withdrawal Forms

Tips To Know Before Making EPF Withdrawal Claim Online

  • Enter your UAN, member ID and select the state and regional office.
  • Enter your Aadhaar and PAN number for KYC.
  • Enter your full legal name and date of birth.
  • Enter your current mail ID and phone number. You will have to authenticate these by OTP.
  • Post authentication, your UAN would be activated.

EPF Withdrawal Portal

  • Check your KYC details by clicking on ‘manage’ tab. Verify if PAN, Aadhaar and bank account details are right.

  • Post verifying KYC details, click on ‘online services’ tab.

  • Click on claim form, fill the particulars and submit.

  • Select the claim you seek to make. You would be allowed to select only those claim categories that you are eligible for.
  • Fill the form correctly and submit by uploading requisite documents in the prescribed format.

EPF Claim Status

Once you have submitted an application for EPF withdrawal, you can track the claim status on the official website of EPFO. To track claim status, you must follow the below mentioned steps:

Benefits Of EPF Withdrawal Online

Below mentioned are the benefits of EPF withdrawal online:

  • The introduction of online EPF withdrawal procedure has made the claim process faster and hassle free.
  • You don’t have to visit the EPFO office. The online procedure has removed the necessity of visiting the regional EPFO office and the entire claim process can be done by sitting at home.
  • There is no need of employer’s approval to withdraw EPF.

If you are a salaried employee, then you must be familiar with the Employee Provident Fund, popular called EPF. Out of your basic salary, 12% is compulsorily deducted and added to your EPF account. Your employer makes an equal contribution towards your EPF. The money in the EPF is managed by the EPFO.

Any Company with more than 20 employees has to register with the EPFO as per laws. EPFO has more than 6 Crore subscribers. Currently, EPF interest rates are at a 5 year low of 8.55%.   You will soon see ETF (Exchange Traded Fund) units in your PF account. EPFO had started investing money in ETFs way back in August 2015. EPFO will raise the equity investment limit to 25%, especially for subscribers who earn a high salary.

Your money invested in the stock markets via ETF is managed by SBI Mutual Fund, UTI Mutual Fund and CPSE (Central Public Sector Enterprise).

Want to know more on PPF and ETF? We at IndianMoney.com will make it easy for you. Just give us a missed call on 022 6181 6111 to explore our unique Free Advisory Service. IndianMoney.com is not a seller of any financial products. We only provide FREE financial advice / education to ensure that you are not mis-guided while buying any kind of financial products.

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How To Withdraw Your EPF Online?

For EPF withdrawals above Rs 10 Lakhs, online filing of claims is compulsory. EPFO has also made it mandatory to file online claims for withdrawals of above Rs 5 lakh under the Employees Pension Scheme 1995. Let's understand the EPF Online withdrawal Process in a simple manner.

Before you move to the EPF Online withdrawal Process, make sure that:

  • UAN (Universal Account Number) and your registered mobile number are active.
  • UAN is linked to your KYC (Know Your Customer) which includes Aadhaar, PAN and Bank Account.

SEE ALSO: EPF Interest Rates Slashed?

Steps to withdraw EPF Online

STEP 1 : You must first log on to the UAN Portal.

STEP 2:  You go to the "Manage Tab" and verify if KYC details like Aadhaar, PAN and bank details are correct.

STEP 3: After you verify KYC, you select the claim option from the Online Services Tab. On the screen you will see, Member, KYC and other Service details.

STEP 4: You hit the Proceed For Online Claim tab and submit your claim form.

STEP 5: You select the appropriate criteria under, "I Want To Apply For" field. Only eligible options will be shown in the drop-down box.

STEP 6: After you select the relevant claim, a detailed form will be shown to you. You must fill the form online, and authenticate using the Aadhaar OTP to submit your claim.

STEP 7: EPFO will obtain KYC (Aadhaar) details from UIDAI, and process your online PF claim. Your bank account gets credited with the claim amount.

STEP 8: You can track the claim status through, "Track Claim Status", under the 'Online Services' menu.

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EPF is an excellent investment which enjoys the EEE benefit. Your contribution to the EPF is tax deductible up to Rs 1.5 Lakhs a year, under Section 80C. The interest you earn and the amount at withdrawal are tax-free. 

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IndianMoney.com Research Team

The research team at IndianMoney.com comprises of certified and experienced professionals who share the company's vision to make every Indian financially literate by equipping every Indian with right and unbiased advice. IndianMoney.com research team provides newsletters, articles, videos and FAQs on various financial products and concepts only to help you make wise financial decisions.

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