EPF or PF Withdrawal Rules 2024 - Bajaj Finance (2024)

Mentioned below are the fundamental EPF withdrawals rules in 2024:

1. Withdrawal Limits:According to the updated regulations, PF account holders can withdraw an amount equivalent to three months of their basic salary plus dearness allowance or 75% of the net balance in their EPF account, opting for the lower of the two.
2. Restrictions During Employment:While actively employed, individuals are restricted from withdrawing any funds from their PF account, whether in full or partial amounts. The withdrawal option becomes accessible during periods of unemployment.
3. Partial Withdrawal During Short-term Unemployment:In the event of a one-month or longer unemployment period, individuals are permitted to withdraw up to 75% of their EPF funds. The remaining balance can be withdrawn if unemployment persists for two months or more.
4. Online Submission and Processing:Withdrawal requests can be conveniently submitted online, streamlining the process for account holders. Online submissions are typically processed within three working days, ensuring a swift response to financial needs.
5. Offline Claim Processing Duration:Conversely, offline claims may take an extended period of up to 20 days for processing. Individuals opting for offline methods should consider the longer processing timeframe when planning their financial transactions.

Documents Needed for PF Withdrawal

Here are the documents required to withdraw your PF funds:

• The UAN (Universal Account Number) is mandatory and can be obtained from the employer.
• Ensure your bank details match the EPF account's registered name.
• The bank account linked to theprovident fundmust be in the account holder's name.
• Personal details like father’s name and date of birth must match the identity proof.
• Employers handle submitting necessary details to EPFO and recording employee exits.
• Clearly state joining and leaving dates for accurate processing.

How to apply for EPF Withdrawal

There are 2 methods to apply for EPF withdrawal:

• Physical Application:When opting for a physical application forEPF withdrawal, individuals are required to download the new Composite Claim Form, either (Aadhaar) or (non-Aadhaar), specifically designed for this purpose. The choice between the two forms depends on the linkage of Aadhaar and bank details on the UAN portal and the activation status of the Universal Account Number (UAN). If Aadhaar and bank details are successfully linked and the UAN is activated, applicants can utilize the Composite Claim Form (Aadhaar). Submission of this form can be made directly to the respective jurisdictional EPFO office without the need for employer attestation. Alternatively, if Aadhaar and bank details are not linked on the UAN portal, applicants should use the (non-Aadhaar) Composite Claim Form, complete the necessary information, and submit the form with employer attestation to the respective jurisdictional EPFO office.
• Online Application:The EPFO provides a convenient online withdrawal option to simplify and expedite the EPF withdrawal process. To initiate an online withdrawal through the EPF portal, certain prerequisites must be met. This includes the activation of the Universal Account Number (UAN) and ensuring that the mobile number used for UAN activation remains operational. Additionally, successful linkage of the UAN with various KYC details, such as Aadhaar, PAN, bank information, and the IFSC code, is crucial for a seamless online withdrawal experience. Meeting these conditions enables individuals to leverage the efficiency and ease of the EPFO's online withdrawal facility.

Taxation on EPF Withdrawal

The taxation on EPF withdrawal is subject to various rules and conditions. If an individual withdraws their EPF balance before completing five years of service, Tax Deducted at Source (TDS) is applicable. The TDS rate stands at 10% if the Permanent Account Number (PAN) is furnished at the time of withdrawal. In cases where PAN information is not provided, the TDS rate increases to 34.608%. However, it is important to note that if the withdrawal amount is less than Rs. 50,000, no TDS is deducted.

There are specific scenarios exempt from TDS:

1. TDS is not applied if the termination of service is beyond the individual's control. Events such as company lockouts, retrenchments, or employee layoffs fall under this category.
2. TDS is not applicable when the service termination is a result of a serious medical condition, including physical or mental disabilities, making it impossible for the individual to continue employment. In such cases, the EPF withdrawal remains untaxed, providing relief in challenging circ*mstances.

Grievance Portal of PF Withdrawal

For those dissatisfied with EPFO services, they can file their complaint online in EPF grievance portal. Register complaints, send reminders, track complaint status, upload necessary documents, and modify your password through this user-friendly system.

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