Do you want to withdraw PF corpus and don’t know where to start? Fortunately, you have come to the right place. We understand that PF withdrawal process is hectic and complicated for most retired people. Because they don’t have a clue about the essential details and forms.
Don’t worry; we have devised this guide especially for you. Here, we will explain essential methods for PF withdrawal. By following these methods, you will get the PF withdrawal within no time.
Why Pre-Mature PF Withdrawal Is Not A Great Idea?
Provident Fund is a retirement corpus that you gradually build. It serves as the most beneficial financial instruments. There is no burden, as little amount of contribution is required every month. Moreover, you earn the handsome interest of 8.75% p.a on your contribution. That’s why you should not opt for the pre-mature withdrawal.
Following reasons also indicate that advance PF withdrawal is not a great option:
- Retirement Corpus: PF is your investment over a long period for your retirement. You should not touch it before retirement. Because you are going to rely on PF heavily, after retirement.
- Advance PF Is Taxable: Interest earned on your PF is exempt from tax if withdrawn after retirement. If you make the withdrawal within 5 years of opening account, the interest earned becomes taxable.
- Transfer Of PF Account: In a case of job switching, don’t go for withdrawal. Because you have an option to transfer PF balance from older account to new account.
A final verdict is that you must not withdraw PF corpus unless you need it badly.
PF Withdrawal Without Employer Signature
A few years back, getting the employer signature on the PF form was a real issue. Thanks to EPFO, you can make the request without Employer signature. We must applaud EPFO for their sincere effort to make PF system more user-friendly. First, they launched the online PF transfer facility. Now, we have an option to withdrawal PF without asking for Employer signature.
Below, we will see two different methods of making the withdrawal without employer signature. Before that, please take a look on UAN!
UAN Made The Process Easier & Faster
PF Withdrawal has become incredibly easy thanks to UAN. UAN stands for Universal Account Number. EPFO allots the UAN to all PF account holders. If you have attached Aadhaar card and bank account details to UAN, and your employer has done the KYC verification. Then PF withdrawal will be completed within no time.
PF Withdrawal With UAN
When UAN facility was launched, the users were advised to link Aadhaar card details. Because this comes handy at the time of withdrawal. Before UAN, the EPFO has to verify the identity of the employee. Now, it is done with UAN based on Aadhaar card details. In the end, you will receive the money directly in your bank account. Isn’t amazing!
Steps To PF Withdrawal With UAN
Before we jump into a process, please check out following pre-requisites. You will need them essentially for making the request.
- You must own a UAN. You can check UAN status online on the EPFO website.
- Bank account and Aadhaar card details must be linked to the UAN
- Your employer must have done KYC verification for your Aadhaar card
Here are the processing steps:
- First off, visit the official website of EPFO.
- Click on “Miscellaneous > Downloads > Claim Forms” and download forms with
- UAN in their names.
- PF has two components including Employee Provident Fund and Employee Pension Scheme. For EPF withdrawal, you need a Form 19 or 31(Advanced withdrawal). To avail Pension benefits, download Form 10C.
- Now fill the forms with essential details like name, registered mobile number, UAN, address, date of joining & leaving establishment and PAN, etc.
- You must attach a canceled cheque with the forms.
- Now submit the duly filled forms to the regional EPF office.
- Once verification is done, EPFO will forward the funds directly to your bank account.
PF Withdrawal Without UAN
This is an old method of making the withdrawal without employer signature. It is useful for those who do not own a UAN. This is a situation, where Employer is not available for form attestation. Without attestation as a verification of identity, you cannot have PF corpus.
Steps To PF Withdrawal Without UAN
- First off, you need to visit HR department of the previous establishment.
- Here you can get the Form 19, 31 or Form 10C as per the needs.
- You have to fill the form with required details.
- The real issue is the attestation. In case your employer is not verifying your form. You
- have the option to make direct application to EPFO. But still, a form needs to to be attested.
- Thanks to EPFO, if your form is duly attested by credible authorities, the application will be accepted. The credible authorities include manager of bank, any gazetted officer or post/sub post master or magistrate or notary public or president of Village.
- Be careful, you need stamp and signature on every page of the application.
- Yo have to attach the reason of direct application too.
- After verification, the PF corpus will be released.
This method is an alternative channel. EPFO don’t prefer it much. That’s why, try to attest forms from bank manager of the bank where you maintain the account.
You have seen both methods of PF withdrawal. First one is the easiest channel to get PF corpus. That’s why every employee should own a UAN. The second method works, but not preferred by EPFO. This approach is time-consuming with risks of rejection. Hence, you should get a UAN based on Aadhaar card verified by the employer!
Hopefully, this guide was helpful for you. If you have any further queries, please share with us! We would like to solve them!