Do you want to withdraw EPF balance? Because you just left the job. You must be concerned about slow and complicated processing of EPF withdrawal But don’t you worry! Thanks to the authorities, making the EPF withdrawal is convenient like never before! We will show you how to claim the EPF balance easily and quickly!
Why Should You Not Make EPF Withdrawal?
Although, you have come to seek help about EPF withdrawal. But we recommend not to make withdrawal for following reasons:
- Retirement Corpus: EPF is a great financial instrument to build your retirement corpus. This way, you can save little amount per month. Don’t forget about the interest rate i.e. 8.75% p.a. Honestly, this corpus will make your life stress free after retirement!
- Tax Benefits: EPF comes with tax benefits. If you make the premature withdrawal, the balance will be taxable. Precisely, if you claim the EPF before 5 years of the opening the account, the interest earned becomes taxable.
- Transfer Of EPF: If you are making withdrawal due to the new job, then you have an option of the transfer. Yes, you can transfer the old EPF balance to new EPF account!
- 100% Withdrawal Is Not Allowed: Sadly, before retirement, you cannot claim the 100% EPF balance! You cannot receive employer’s contribution and interest earned till the retirement! That’s a big drawback!
Bottomline is that, avoid making the withdrawal unless you need it! Ok now let’s look at how can you withdraw EPF.
Universal Account Number
Universal Account Number is the key that made withdrawal procedure super easy and quick. Before UAN, the employees had to fill long and complicated forms. Secondly, attesting the form from the previous employer was another headache. In a case of establishment shut down, the employees had no access to the employers. To avoid such situation, authorities finally come up with a situation in the shape of UAN.
Basically, UAN is a unified EPF account number. It is being allotted to all employees. One can use it transfer or withdraw the EPF balance. So, it has brought the element of portability to the EPF account.
The attestation from the employer is the major issue that employees always face. The good news is that UAN allows you to skip the attestation step. As per EPFO, if your Aadhaar card or bank account details are associated with UAN. You don’t have to attest the form from the employer. Because when UAN was created, Know-Your-Customer verification was done by the employer. Isn’t amazing! There is no chance of misuse by employers!
So, finally, you have basic and essential knowledge about EPF withdrawal. Now, let get to the real business!
Due to UAN, the slow processing of withdrawal has vanished. But still, there are two ways to withdraw the EPF account. We will check both methods. You can choose as per your needs. But both of them work just fine!
Older EPF Withdrawal Process
Before jumping into the process. Let’s talk little about withdrawal forms. Honestly, there are so many of them. We will see only essential ones here. But if you want to all withdrawal forms, please check out Employee Provident Fund Guide.
Your Provident Fund consists of two main components that include EPF and EPS (Employee’s Pension Scheme). Your employer contributes to the both accounts. For EPF withdrawal, you just need Form 19. If you wish for Pension claim, use the Form 10C. The same form can be used to receive a scheme certificate. Encashment of pension is totally up to you. For advance withdrawal, you will need Form 31.
Things You Need
- PF Account Number
- Joining Date
- Leaving Date
- Bank Account Number
- IFSC Code
Let’s check how it is done!
- First of all, visit the HD department of the establishment along with a copy of cheque.
- The HR department will provide you Form 19 with Form 10C or Form 10D as per the case.
- You can get information about joining or leaving date from the department.
- Submit the forms after filling them with required details.
- Now, HR department will attest the form and forward it to the regional PF office.
- It usually takes a month to verify and release the withdrawal amount.
- After verification, the EPFO will make the direct deposit to your bank account.
New EPF Withdrawal Process
Thanks to UAN, the withdrawal process has become simpler. The verification of form by the employer is no longer needed. Because for verification of UAN, the employer did it.
By following these steps, you can claim EPF balance so quickly:
- Visit the official website of EPFO i.e. www.epfindia.com.
- Click on “Miscellaneous > Downloads > Claim Forms” and select the forms with “UAN” in their names. Under Employees’ Pension Scheme, you will get the Form 10C. For Form 19 & 31, click on the Employees’ Provident Funds Scheme.
- While filling the form, keep your UAN and registered mobile number in hand. These forms are short that includes a couple of details. Such that joining date & leaving date, postal address and employer’s address, etc.
- Everything you enter in the form must match with the UAN details. Otherwise, you have to repeat the process.
- Now forward the forms to the regional PF manager with whom the employer has maintained the account.
- After verification, within a month, EPFO will release your claim!
So, we have explained everything you need to know about EPF withdrawal. In a case of any further query, please share with us via comments !