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Withdraw Employee Provident Fund (EPF)-Check Procedure & Tax Exemptions

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What Is Employee Provident Fund (EPF)?

Employee Provident Fund (EPF), is a compulsory saving plan and retirement plan for all the legally employed employees. A part of salary gets deducted from each employees salary every month (At present 12% of basic monthly salary) and an equal contribution by the employer.

The Employee Provident Fund Organization (EPFO) is a statutory body of the Government of India, who manages this fund in a life time banking scheme to provide retirement benefits (primarily) to the employee. It applies to both private and non-pensionable public sectors.

Is Employee Provident Fund (EPF) Contribution, Compulsory In India?

As per employees provident act 1952, any establishment in India having 20 or more employees (including casual, part time, Daily wage contract etc.) are required to contribute towards EPF. It applies to government concerns also but in case of co-operative societies the minimum number of employees is 50.

It’s optional (not compulsory) for the employees whose pay (Basic wages + dearness allowance + retaining allowance (if any) + cash value of food concessions admissible thereon) exceeds Rs. 5000 per month.

ALSO READ : Now You Can Check Your EPF Account Balance/ Passbook Online

Employee Provident Fund

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What Is The Interest Rate On Employee Provident Fund (EPF) Contribution in India?

The rate of interest get revised every year by the Central Government in the month of March/April. The interest is credited to the members account on monthly running balance with effect from the last day in each year. The rate of interest for the year 2010-2011 is 9.5%.

How Can One Check His Employee Provident Fund Balance?

Now you can check your EPF balance Online. For Details click HERE

How To Withdraw Employee Provident Fund (EPF) Amount in India?

You can withdraw your Provident Fund (PF) after 60 days of leaving your organization. For that you need to fill a PF withdrawal form and sign before submitting to the HR of your last organization. Then it is HR responsibility to get the form stamped and signed from a designated authority and submit. All you need to do is wait for the amount to be credited into your account.

In case you do not want to approach your company for the PF withdrawal, then in that case you can either purchase or download the form. Fill the form, sign it and get your form attested with a gazetted officer. You can submit your application yourself to the PF department after getting signed from outside authority and wait for around 30 to 45 days for processing your request. PF department will get the needed details from your last organization and transfer your PF amount into your account.

Note: Always ensure all the details mentioned on the form should be correct. Any mismatch can lead to your application rejection. So double check your Name, Father’s Name, Bank Account Number, Bank Name, Bank Address (Full) etc.

How Can One Check His Provident Fund (PF) Claim Status?

Now you can check your Provident Fund claim status online. To check your claim status click HERE

Is There Any Tax Or TDS On PF Withdrawal?

Withdrawal of provident fund (PF) can be taxable. Income tax department of India offers tax exemption on the withdrawal of PF amount under Section 80 C. Section 80C of Income tax law states that the withdrawal of EPF is exempt from tax upto a limit of Rs 100,000, if the withdrawal happens after completion of 5 years (precisely 4 years + 240 Days) . Almost all the exempted investment which falls under section 80C has a lock-in-period of 5 years (ELSS has only three years lock in period).

ALSO READ : Struggling To Get The Status Of Your EPF Withdrawal Or EPF Transfer Request? – File An RTI

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3 comments

  1. How Can Procesed The Receive Pasbook Of EPF,and Withraw Amount Without Employer Signatures.

  2. Hi Neetu

    Can request for PF Withdrawal be made online as well ??

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