As per the reports on 21st February, the EPFO raised the interest rates for the financial year 2018-2019 on provident fund to 8.65%. This increase by 10 basis point, from 8.55% in the financial year 2017-2018, has benefited the employees by providing them with higher returns.
The EPF accounts remain unchanged throughout your employment tenor. Once you employer changes, the account is allotted with your new company. You can withdraw your PF online by following a simple procedure.
While you do so, there are specific points that you should keep in mind, such as:
- You can withdraw 75% of the balance after one month of unemployment.
- The remaining 25% can be withdrawn after two months of unemployment.
- You can also check your PF status online after withdrawal on the EPFO official portal.
- To withdraw funds, you will have to link your Aadhaar Card with your UAN.
How to Check PF Status Online?
Step 1. Visit the official EPFO portal and click on the ‘For Employees’ option under the ‘Our Services’ bar.
Step 2. You will be redirected to a page where you will have to click on the ‘Know Your Claim Status’ under the ‘Services’ option.
Step 3. Share your UAN and enter the correct captcha and click on ‘search’.
Step 4. Enter your member ID and click on the ‘View Claim Status’ option to view your claim details.
Once you know how to check PF status, you can withdraw the required amount from the official portal of the EPFO.
You can also plan your finances for early retirement by depositing your withdrawn funds in proper investment plans.
Procedure to Withdraw Your PF Online
To withdraw your PF online, follow the below-mentioned steps:
Step 1. Access the official EPFO portal.
Step 2. Provide your UAN, password and enter the correct captcha to access your PF online account.
Step 3. Click on ‘Manage’ to check if your KYC details are verified. Also, check if any changes are required.
Step 4. Once your KYC details are verified click on the ‘Online Services’ tab and select ‘Claim (Form 31, 19 and 10C)’.
Step 5. After you click on the ‘Claim’ option, you will be able to view your KYC details, service details and member details. Check your details and enter the last four digits of your account and select the ‘Verify’ option.
Step 6. You will receive a certificate to withdraw PF online. Click on ‘Yes’ to proceed.
Step 7. After you click ‘Yes’, you will be redirected to another page where you will have to click on ‘Proceed for Online Claim’.
Step 8. Once you receive the form, enter the claim amount that you require, which is a partial settlement or full settlement under the ‘I Want to Apply for’ option.
Step 9. Click on ‘PF Advance (Form 31)’ to withdraw your funds. You can deposit the withdrawn amount in several investment plans such as fixed deposits to increase your retirement savings.
Step 10. After you click on the above mentioned option, you will receive a certificate that you need to accept and submit your application after that.
You may be asked to provide the purpose behind your withdrawal. After your application for withdrawal is approved, the amount will reflect in your account within 15 to 20 days.
With the amount, you can invest in various funds such as fixed deposit. NBFCs like Bajaj Finance offer you a competitive rate of interest of 8.35% that can be extended up to 8.70%. This NBFC also offers flexible tenor of up to 12 months to 60 months.
CRISIL and ICRA are the regulators of such type of investments and the ratings vouch for the safety and security of your invested money. You can use a fixed deposit calculator to determine your returns in advance before investing.
Apart from the above, your PF online withdrawal will also be eligible for TDS deductions if you have not completed 5 years of continuous service. Also, the amount will attract TDS if it is more than Rs. 50,000. TDS is also applicable if you do not have PAN.
You can claim exemption from TDS via form 15G. Form 15G is available from the official website of the Income Tax Department.
Withdrawing your PF is now convenient, and you can do so online. To withdraw PF online, you will have to visit the EPFO official website and access your PF account with your password, UAN and enter the correct captcha code. After logging in to your account, click on the ‘Manage’ option and check your KYC details.
Once your KYC details are verified, click on the ‘Online Services’ option and select ‘Claim’ option. You will be redirected to a page where you will have to enter the last four digits of your account number.
As and when you enter your account number you be redirected to a confirmation page. Click on ‘Yes’ following which you will have to click on ‘Proceed for Online Claim’ option. Following that, you will have to click on ‘PF Advance (Form 31)’ and provide the reasons behind withdrawing your funds.
After the withdrawal claim is approved, the amount will be credited to your account within 15 to 20 days. As an investment for the future, you can deposit the received amount in safe schemes such as fixed deposits.
Note that your withdrawn amount will be eligible for TDS deductions if the amount is more than Rs. 50,000 or if you have not completed 5 years of continuous service. You can claim TDS exemption via Form 15G, which you can download from the official website of the Income Tax Department.