PF Withdrawal Rules 2023:- The Employees Provident Fund, commonly referred to as Provident Fund, is a mandatory retirement savings initiative applicable to all employees within eligible organizations. This program enables employees to depend on the accumulated fund corpus after retirement epf withdrawal rules . Recently, there have been updates to the PF withdrawal regulations, aimed at providing individuals with easy access to their PF funds pf withdrawal limit. Delve into the details below for comprehensive information on PF withdrawal rules, including highlights, conditions, limits, procedures for online PF withdrawal, and more.
EPFO Salary Limit: वेतन सीमा ₹15000
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PF Withdrawal Rules 2023
The Provident Fund, commonly known as PF, is a savings program based on contributions from both the employer and the employee. These financial contributions aim to build a fund that covers post-retirement expenses. epf withdrawal rules Within the framework of specific withdrawal regulations, employees can access or withdraw the accumulated corpus. The Employees’ Provident Fund Organization, a statutory body in India, oversees the management of the Employee Provident Fund pf withdrawal limit. This fund serves as a crucial source of financial security for Indian citizens employed in the organized sector.
The primary purpose of EPF contributions is to serve as savings for post-retirement. The EPFO ensures the continuous enrollment of all employees in the program and discourages premature withdrawals from their PF corpus epf withdrawal rules. To enforce this, the EPFO has established specific regulations governing EPF withdrawals. Recently, the Employees’ Provident Fund Organization (EPFO) has updated several regulations related to withdrawals from the Provident Fund (PF) account.
Key Highlights Of PF Withdrawal Rules 2023
| Name 📝 | PF Withdrawal Rules |
|---|---|
| Regulated by 🏢 | Employees’ Provident Fund Organization |
| Beneficiaries 👥 | Employees |
| Official Website 🔗 | epfindia.gov.in |
Checking PF Withdrawal Rules
- In contrast to a conventional bank account, an EPF account doesn’t permit withdrawals during active employment, serving as a dedicated long-term retirement savings plan. Withdrawals from the EPF account are typically allowed only after retirement pf withdrawal limit.
- However, in specific emergencies such as medical crises, home acquisition or construction, or pursuing further education, partial withdrawals from EPF accounts are permissible, subject to certain restrictions based on the purpose. The account holder can electronically request a partial withdrawal.
- An employee, aged at least 54 years, may withdraw up to 90% of the EPF corpus up to one year before retirement pf withdrawal limit. The EPF corpus can only be accessed after retirement, although early retirement is not permitted until the person turns 55.
- In cases of job loss due to factors like lockdown or retrenchment, the EPF corpus may be withheld. Under the latest regulation, EPFO allows the withdrawal of 75% of the EPF corpus after one month of unemployment. The remaining 25% can be deposited into a new EPF account after securing new employment.
- Members must declare unemployment before taking an EPF withdrawal. Previously, after two months of unemployment, 100% of the EPF could be withdrawn. Tax is deducted at source when the EPF corpus is prematurely withdrawn. However, TDS is not applicable if the total amount is less than Rs. 50,000. A 10% TDS rate applies if an employee provides their PAN, and 30% plus VAT is deducted if PAN is not provided.
- Form 15H/15G is a declaration form allowing individuals to avoid TDS if their entire income is not taxable. Employment authorization is no longer a prerequisite for EPF withdrawal. If the UAN and Aadhaar are linked and the employer approves, it can be done promptly through the EPFO, pf withdrawal limit and the EPF withdrawal status can be checked online.
- Tax exemptions for EPF corpus withdrawals are available under certain conditions. To be eligible for tax exemption, an employee must contribute to the EPF account for five consecutive years. If there’s a break in contributions for five consecutive years, the EPF amount becomes taxable, constituting the entire sum as taxable income for that fiscal year.
Conditions for Withdrawal
Conditions for PF withdrawal vary based on different situations:
1. Employees Continuing Under Service:
- For advances from the PF account, employees must submit the Composite Claim Form.
- Form 14 is required if using the PF account for LIC coverage payments epf withdrawal rules .
- Employees over 58 years need to submit Form 10D for the pension fund and may qualify for a monthly pension after ten years of service.
2. Switching Jobs by Employees:
- EPF account transfer when changing jobs requires Form 13.
- If leaving a company without transferring, PF and pension claims can be made using the Composite Claim Form.
3. Workers Quitting Companies Due to Physical Disability:
- Form 10D is used for monthly pension claims.
- PF claims are submitted using the Composite Claim Form (Aadhaar/Non-Aadhaar).
- Workers over 58 with less than ten years of qualifying service can claim pension and PF benefits using the Composite Claim Form.
4. Employees Passing Away While Serving:
- Form 20 is used for PF settlement by beneficiaries, nominees, or successors.
- Form 10D is required for monthly pension claims.
- Form 5IF is used for EDLI claims.
5. Workers Passing Away After Retirement:
- Form 20 is used for PF claims by the deceased employee’s heir, nominee, or beneficiary.
- Form 10D is necessary for claiming the monthly pension.
- Beneficiaries are entitled to the pension fund even if the employee hasn’t accrued ten years of qualifying service after turning 58, using an Aadhaar/Non-Aadhaar Composite Claim Form.
PF Withdrawal Limits
| Reasons 📋 | Eligibility 🌐 | Withdrawal Limit 💸 |
|---|---|---|
| Marriage of self/daughter/son/sister/brother or for children’s post-matriculation education 💍👧👦👰 | Minimum 84 months of service | Up to 50% of the EPF account |
| Housing loan for building a house or adding on, buying a lot, or renting a flat 🏡🛠️ | Minimum 60 months of service | Up to 36 months of his or her base pay plus DA, the sum of the employee and employer portions plus interest, or the full cost of the home |
| Medical expenses/purchase of equipment by physically handicapped/Natural Calamity/closure of factory/cut in electricity in the establishment 🏥🌪️🏭🔌 | No minimum service tenure | His/her basic and DA pay for up to six months, or the full contribution |
| One year before retirement 🕒 | Should be older than 54 years old | Up to 90% of his/her EPF amount |
Procedure for Online PF Withdrawal
To initiate Online PF Withdrawal, users can follow the steps outlined below:
- Begin by visiting the official website of the Employees’ Provident Fund Organization (EPFO) Portal.
- The homepage of the website will be displayed on the screen.
To initiate Online PF Withdrawal, follow these steps:
- Navigate to the official website of the Employees’ Provident Fund Organization (EPFO) Portal.
- Click on the “Services” option, followed by “For Employees.” A new page will be displayed on your screen.
- Now, select the “Member UAN/Online Service (OCS/OTCP)” option under the services tab. Another page will appear on your screen.
- Enter your UAN, password, and the Captcha code. Click on the Login button to access your registered account.
- The dashboard of your account will open on the screen. Under the “Manage” tab, click on the “KYC” option. A new page will be displayed.
- Check all your KYC details under the Digitally Approved KYC section to ensure accuracy.
- If all KYC information is correct, select the “Online Service” link from the top menu to proceed with the withdrawal.
- Click on the “CLAIM FORM-31, 19 & 10C” option. The ONLINE CLAIM (FORM 31, 19 & 10C) form will be displayed on the screenpf withdrawal limit .
- Enter the last four digits of your registered bank account number and double-check it. A Certificate of Undertaking will be generated after successful bank account verification.
- Finally, choose the option to “Proceed for Online Claim.”
- To withdraw money online, select the “PF ADVANCE (FORM-31)” option.
- Choose a reason for the claim from the drop-down menu next to the “Reason for which advance is required.” Complete the fields for the employee’s address and the advance amount. Click on the checkbox and submit your withdrawal application.
- Upload the necessary documentation based on the type of withdrawal.
- Once the employer approves the withdrawal request, the withdrawn amount will be deducted from the EPF account and transferred to the designated bank account.
- Upon settlement, you will receive an SMS notification on your registered cellphone number.
Summary
As we have shared with you all the information related to PF Withdrawal Rules 2023 in the article, if you want any other information apart from these information, then you can ask by messaging in the comment section given below. All your questions will definitely be answered. We hope that you will get help from the information given by us.
EPFO Salary Limit: वेतन सीमा ₹15000
🚀 Big EPFO Update 2023! 💰 Earn
EPFO आपके EPF खाते में कब क्रेडिट होगा
UAN Activate Kaise Kare 2023, EPFO
FAQ Questions Related PF Withdrawal Rules 2023
According to the new rules, PF account holders can withdraw money equivalent to three months of their basic salary plus dearness allowance or 75% of the net balance in their PF or EPF account, whichever is lower epf withdrawal rules. This will be taken as a non-refundable deposit. These withdrawal claims can be raised online.
According to the latest regulations, PF account holders are now permitted to withdraw an amount equivalent to three months of their basic salary plus dearness allowance or 75% of the net balance in their EPF account, whichever is lower. It’s important to note that as long as you are employed, whether fully or partially, you are not allowed to withdraw any money from your PF account.
Full withdrawal of your entire PF corpus is only permitted after you retire, and retirement eligibility starts at 55 years old. If you choose to retire before reaching this age, you won’t be allowed to receive your entire corpus at once. However, you do have the option to obtain 90% of your EPF corpus one year prior to your retirement date.
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