Understanding PF Withdrawal Procedures for Employees with Less Than 5 Years of Service

Many employees are often confused about the process of withdrawing their Provident Fund (PF) when their service tenure is less than five years. This article aims to clarify some common misunderstandings and provide detailed guidance for employees and HR staff.

Do You Need to Submit a Form 15G?

Many employees ask whether they need to submit a Form 15G to withdraw their PF. The answer is that it is not necessary to fill out a Form 15G if your service tenure is above five years. However, if your service tenure is less than five years, TDS (Tax Deduction at Source) will apply, and you need to either submit a Form 15G or have a PAN (Permanent Account Number) card.

Note that if you fail to submit a Form 15G but submit your PAN, a 10% TDS will apply. If you fail to submit both, 42.744% TDS will be deducted from your PF amount.

Submitting Form 15G with an Online PF Withdrawal Application

For instances where you opt to withdraw PF before five years of service through an online application, you can indeed submit a Form 15G along with your application. This form is necessary for accounts with less than five years of service to avoid TDS. However, the process is not mandatory for accounts with more than five years of service, as these are tax-free withdrawals.

Eligibility for PF Withdrawal

You are now eligible to withdraw your PF as you have completed the required waiting period of 45 days after resigning from your company. It is advisable to meet your HR department to facilitate the process of withdrawing your PF.

The PF withdrawal process typically involves:

Meeting HR or an authorized person to assist in filling out the necessary forms. Having the form stamped by the company stamp, if required. Submitting the completed and stamped form to the EPF Corp.

After submission, you will receive an SMS notification from the EPF Corp, confirming that your application has been received. The process usually takes around 7 to 10 days, and the amount will typically be credited to your account within this timeframe.

Requirements for PF Withdrawal Post June 2015

Starting from June 2015, every PF withdrawal request must be accompanied by two copies of Form 15G and two photocopies of your PAN card. Failure to provide these documents may result in your application being returned or delayed. It is crucial to ensure that all necessary documents are submitted to avoid any issues.

By following these guidelines, employees can ensure a smooth and stress-free PF withdrawal process, regardless of their service tenure.