Understanding EPF Withdrawal without Tax Deduction: Conditions and Procedures
Greetings,
The short answer is yes, you can withdraw the entire accumulated amount from your EPF (Employee Provident Fund) account without tax deduction, provided you meet certain conditions. However, there are specific rules and circumstances that apply.
Key Conditions for EPF Withdrawal without Tax Deduction
EPF is a crucial component of retirement savings in many organizations, particularly in India. Typically, withdrawals from an EPF account are subject to tax unless certain conditions are met. Here, we explore scenarios where tax-free withdrawal is possible, including conditions after specific employment durations and situations involving unemployment.
EPF Withdrawal without Tax if Unemployed for a Month
One of the conditions under which you can withdraw EPF funds without tax deduction is if you are unemployed for a month. In such cases, you can withdraw 75% of your corpus. If unemployment extends to two months, you can withdraw the remaining 25% as well. Essentially, if you are unemployed for just 2 months, you can claim the entire accumulated corpus.
Premature Withdrawal with Specific Circumstances
In addition to the above, there are specific circumstances that allow for premature withdrawals from your EPF account. Here are some notable scenarios:
Illness or Disability
If you suffer from a severe illness or disability, you can withdraw funds from your EPF account to cover medical expenses. This withdrawal typically requires medical certification.
Death of the Employee
In the event of the employee's death, the nominee or legal heir can withdraw the entire balance without any tax consequences.
Marriage Expenses
Under certain conditions, funds can be withdrawn for marriage expenses, but this is subject to a predefined limit.
How to Apply for EPF Withdrawal
There are two primary methods to apply for EPF withdrawal: offline and online. Both methods require adherence to specific conditions and procedures to ensure a smooth process.
Offline Method
To withdraw EPF funds offline, you can download the new Composite Claim Form (Aadhaar) or Composite Claim Form (non-Aadhaar) based on your eligibility.
If your Aadhaar and bank details are linked on the UAN portal and your UAN is activated, use the Composite Claim Form (Aadhaar). Submit the form directly to the jurisdictional EPFO office without employer attestation. If these details are not linked, use the Composite Claim Form (non-Aadhaar). Fill out the form and obtain employer attestation before submitting it to the EPFO office.Online Method
For an online application, you must meet certain conditions and follow these steps:
Ensure your Universal Account Number (UAN) is activated and the mobile number used for UAN activation is in working order. Ensure your UAN is linked with your KYC (Know Your Customer) details, including Aadhaar, PAN, bank details, and IFSC code (Indian Financial System Code). Visit the UAN portal and log in using your UAN and password. Enter the captcha and click the Sign In button. Under the Manage tab, click on the KYC option to verify your KYC status. Once your KYC details are verified, go to the Online Services tab and choose Claim Form-31 19 10C 10D from the drop-down menu. Enter your bank account number and click on Verify. Sign the certificate of undertaking and proceed. Tap on Proceed for Online Claim. Select the type of withdrawal you wish to make: Full EPF settlement, EPF part withdrawal, loan/advance, or pension withdrawal. Choose PF Advance Form 31 to withdraw your funds. Provide the purpose of the advance, the required amount, and your address. Submit your application and await the employer's approval. After approval, the money will be credited to your registered bank account within 15-20 days.Conclusion
Understanding the conditions and procedures for EPF withdrawal is important for financial planning and management. Whether you're facing unemployment or have specific personal needs, knowing the rules can help you navigate the process more effectively.
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