Provident Fund or PF is a part of your salary which is deducted every month on your behalf. When you quit, you can claim the PF amount. Many people do not get their PF (provident fund) on changing their jobs or transfer their PF from the previous employer to the new employer. The main reason for this, it earns tax-free returns and the funds are safe with the EPFO (Employees Provident Fund Organization). However, Income Tax Appeal (ITAT) has abolished the tax-exemption on interest income after leaving the job. So after leaving your job, to avoid tax on interests, you have to withdraw the amount or transfer the PF to the new employer.
When Can You Withdraw PF Balance?
Total PF amount includes contributions including interest earned by you and your employer. Under the EPF Act, 1952, if you retire from service after attaining the age of 58, you can withdraw the entire PF amount and at the same time can claim the EPS amount (Employee Pension Scheme Amount). You can claim full PF amount before attaining the age of 58, if you have retired from your service and you are unemployed for two months (60 days) directly. After completion of 10 years of service, the PF and EPS can not be withdrawn because if you have completed 10 years of service, your employer will have to provide pension benefits to you. You can withdraw your PF and EPS amount by filling the composite form launched by EPFO, which will take care of your withdrawal, transfer, advances etc. Before starting the withdrawal process, you should keep in mind one thing and that is to merge all your previous PF accounts.
Withdrawing PF Plus EPS Amount:
There are two main ways to remove your PF and EPS amount, one is without using your Aadhaar card number and second Aadhaar card number. Using Aadhaar card process is simple and less time-consuming, but it takes time to process without using the Aadhaar card. Here’s how you can withdraw your money with and without the base card:
Without using Aadhaar Card: If you do not have Aadhar card, but you have your PF number, you can fill the overall claim form (non-base). If you have not completed your 5-year term, you will have to fill all relevant details like PAN (Permanent Account Number) and attach 2 copies of Form 15G or 15H. If you do not have UAN (Universal Account Number) then you can provide a PF account number.
With using Aadhaar card: If you hold the Aadhar card, you have to submit an overall claim form (base) directly to the EPFO office without confirming the claim from your employer. You have to attach a canceled check with the form and your entire PF balance can be sent to your bank account.
There are four conditions in the withdrawal procedure. Observe all the conditions and choose the form accordingly.
1. If you are withdrawing PF balance and EPS amount before completing 10 years of service: If you have not completed 10 years of service, you can claim both PF and EPS amount. All you have to do is fill out the composite claim form and you will have to choose between the balance final PF balance and the alp Pension withdrawal option. If you are planning to work again, you can submit Form 10C and get a ‘Plan certificate’.
2. If you are withdrawing PF balance and EPS amount after completing 10 years of service:If your service term is more than 10 years, then you can not withdraw the EPS amount. You can fill out the composite claim form with Form 10C to get the Scheme Certificate. After receiving the age of 58, you will be paid pension.
3. If you are withdrawing PF balance and EPS amount between the age of 50 and 58 years (after completing 10 years of service). If you are between 50 and 58 years of age and have completed the 10-year term, you can claim early pension (less pension). For this you just have to complete Form 10D with composite claim form.
4. If you are withdrawing only PF balance along with full pension after the age of 58 years.
If you have attained the age of 58 years, it is very easy to get the full claim of pension. You just have to submit Form 10D.
Select the form according to your situation and submit and after all retirement, enjoy all the benefits of EPF and PF plan.
Claim Settlement Period For PF Withdrawal Is Now Just 10 Days
The term settlement period for PF clearance has been reduced from the present 20 days to 10 days. This is due to the launch of online features for withdrawals.
The department has also planned to settle the online claims within 3 hours of the request provided that the EPF is with the account base and bank account details.
In case of claim settlement, the time limit is 10 days and 15 days in case of grievance redressal management.
These new provisions are made in citizen charter of EPFO launched by Labor Minister Bandaru Dattatreya in 2017. It said that the charter is an attempt to bring transparency and accountability from EPFO and make service delivery system and grievance redressal mechanism more efficient and fulfill all employers, employees, litigants and CBTs.
This is a step towards the paperless court system, in which the EPF’s court process, which will be in digital environments.
Also, for facilitating easy access, the petitioner will be sent automated messages about the status of his cases at his registered mobile numbers. These cases can be tracked online too.
Now the parties can file all their paper / evidence / documents online and all the details can be accessed online with status. Regular updation is an important part of e-courts management system.
All these initiatives are being done in conformity with the vision of Prime Minister Narendra Modi’s Digital India.