EPF money withdrawal is one of the biggest issues that bugs an average Indian. After all, the process is quite cumbersome. In fact, it is such a harassing process that it takes months or even years (for some) to get their hands on their own money. The part where one was required to get their withdrawal form attested by existing employer irked a lot many folks. It will irk you too if you do not like your present job and/or the person responsible to attest the form. Hence, EPFO has been working hard to make the process of withdrawing EPF money more convenient. So, here’s how you can withdraw EPF money in just 5 days.
Withdraw EPF Money
#1: How To Claim EPF Money
First of all, you need to meet certain conditions laid down by EPFO to withdraw EPF money. First of all, the only place where you can apply for a claim is here. You must have a UAN in this regard. The KYC information regarding your UAN must be in place and verified/attested by your employer. To initiate the process, visit the link mentioned earlier and login to your account. Then enter your KYC details to enter your Aadhar card and bank details. These details then need to be verified by your employer. If it has been at least two months since you left your job, you can receive your PF money in your bank account. An OTP is sent to your registered mobile number. Once you enter this OTP and submit the Composite Claim Form, the withdrawal process is initiated.
#2: Composite Claim Form
EPFO now uses a composite claim form that is linked with your Aadhar card for EPF withdrawal purposes. This form replaces EPF Form 10C, 19 and EPF part withdrawal Form 31. Hence, no matter your purpose of withdrawal, you need to submit this composite claim form only. Two claimed benefits of this form are that firstly, no employer attestation is needed and second, no proof needs to be attached with the form to withdraw EPF money.
Also Read: How To Save PF Money Till Retirement
Usually, you can withdraw EPF money after five years of continuous service. This means you can work in various organisations and need to keep transferring your PF money from one account to another. If this requirement is met, your withdrawals will not be taxable. However, if this requirement is not met, you will have to pay tax on your EPF withdrawal. The reason for this is the government’s insistence on long-term savings and discouragement of premature withdrawals.
Withdraw EPF Money – Conclusion
In conclusion, do reconsider your decision to withdraw EPF money unless absolutely necessary. Its withdrawal, premature or upon maturity, is something you should care about. After all, EPF money is deducted from your income only. If you withdraw it prematurely, you will be paying taxes on money that was deducted from your income only. The interest earned on this money will be taxable too. If this money stays in the account, it will keep accumulating interest, which means more money for you when you really need it. So, always think carefully before withdrawing EPF money. Who knows you may need it later.