Employees' Provident Fund scheme rules have been tweaked again, and now you can withdraw money only if you intend to buy a house, pay home loan EMIs among other things.
To make a withdrawal you will need to fill the new Composite Claim Form. Those who have an Aadhaar number, bank account details available on the Universal Account Number Portal and have an active UAN, can submit the form directly to the concerned EPFO office, without attestation of claim form by the employer.
The application which you need to make for withdrawal is available on the EPFO website. You have to keep a few things in mind to make sure you don’t make any mistake.
Choose the box correctly as to which kind of withdrawal you want to make -- final PF settlement, part PF withdrawal or pension withdrawal benefit (this facility is available only if service is less than 10 years). Keep in mind the same form can be used for all three types of withdrawal. So make sure you tick the correct box.
Keep the following details handy while filing the form:
* Your 11-digit UAN or Universal Account Number,
* Date of joining and leaving service,
* Purpose for withdrawal and the amount required. The purpose can be only one of the following: housing loan/ purchase of site/ house/ flat or for construction/ addition, alteration in existing house/ repayment of housing loan. No document (New Declaration Form/utilisation certificate, etc.) is required
In case the advance is for purchase of site/house/flat or construction through agency or repayment of housing loan, then indicate the name in whose favour the payment has to be made
* If the withdrawal is for treatment of illness, then you will have to submit a certificate from the doctor stating the same and certificate by employer that ESIC facility is not available to the member
* In case, you are using the funds for marriage of self/son/daughter/brother/sister, no document is required. You may submit the marriage card if you like
* For post-matriculation education of children:, no document is required to be submitted
* In case you have suffered on account of a natural calamity of exceptional cases, you do not need to submit documents either
* In case you want to purchase equipment (for physically handicapped members), a medical certificate is required
Keep in mind that if you have just one year left for retirement, you can withdraw 90 percent of your total PF balance and you won’t need any documents for the same.
In case you want to investment in Varistha Pension Bima Yojana, 90 percent of total PF balance can be transferred to LIC. No document is required.
Keep in mind, if you plan to permanently settle abroad, you are permitted to withdraw the whole amount.
As far as taxation of the PF withdrawn funds, TDS is deducted if the service is less than 5 years. No TDS is deducted in case the total balance is less than Rs 50,000. However, TDS is deducted at 10 percent if the member submits PAN in such cases. In case you don't submit PAN, then TDS at 34.608 percent is deducted.
The total service in the present establishment as well as previous establishment is counted. So make sure you merge all PF accounts without fail.
Published Date: Apr 26, 2017 12:10 pm | Updated Date: Jun 16, 2017 06:41 pm