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[How to] withdraw PF Balance

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When can I withdraw my PF Balance ?

As per PF rules, when you switch job, you only have ONE option – “TRANSFER to new Employer PF Account”.

PF withdrawal is only allowed, if you are unemployed for at least 2 months.

However, many employees withdraw money from old PF Account just by declaring that they are out of job for 2 months. They submit the withdrawal form after 2 months of leaving the last employer. As the PF data is not centralised, or no unique PF ID number is in place, it is difficult for them to track whether the employee has joined another company.

[How to] Check PF Balance online

[How to ] apply for PF transfer online

Steps to withdraw PF Balance at time of resignation

  • Also attach cancelled cheque of your bank account in which you wish to receive the payment.

Can I submit PF withdrawal form online ?  –  No.

Pre-mature withdrawal of PF during employment

There are certain conditions where you are allowed to withdraw PF pre-maturely during the employment. For e.g. education, marriage, purchase of plot, repayment of home loan etc.

Read my other post on – How to withdraw PF early pre-mature during the employment

Taxation

If you withdraw before total continuous service for less than 5 years with the current and previous employers, if any, then the entire PF withdrawn will be taxed in the year of receipt of the accumulated PF.

  • The total of employer’s contribution plus interest thereon, which was not been taxed earlier, will be taxed as salary.
  • The amount of tax benefit claimed under section 80C on account of your contribution shall be taxed, subject to a cap of Rs.1 lakh per year if this was considered as exempt from tax in the earlier relevant years.
  • The interest on your own contribution shall be taxed as “income from other sources”.

If you withdraw PF balance after 5 years,  it will not be taxable. However, you need to report the PF amount withdrawn in the tax return form in the relevant schedule for reporting purposes.

So,it is better to get the PF transfer (when changing jobs) both from interest earning & taxation perspective.

 

Grievance related to withdrawal from EPF:

If you are facing any issues in your PF withdrawal, you can raise grievance :

Log on to the website www.epfigms.gov.in >Click Register Grievance >Enter the details and information in the specified field.

 

Other Related Posts

[How to] Check PF Balance online

[How to ] apply for PF transfer online

How to withdraw PF Balance online, PF withdrawal form online download form 19 form 10c pf withdrawal rules, pdf form, withdraw pf before 5 years

If you have any queries related to this article or any other personal finance query ( Investment, Taxation etc), please comment below

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The author is a Chartered Accountant and loves to write about Personal Finance, Wealth Management, Taxation etc. Disclaimer - The articles on this website is for informational and knowledge purposes and should not be treated as financial advice, Please consult your financial advisor before taking any investment decision.

12 comments

  1. Hi
    I have worked in 3 companies prior to my current employer. The period of stay is as follows
    1. From 31-Jul-2006 to 10-Dec-2010. first employer. (transferred PF to new account in the next(second) employer)
    2. From 16-Dec-2010 to 10-Mar-2012 second employer.(transferred PF to new account in the next(Third) employer)
    3. from 12-Mar-2012 to 6-Jun-2014 Third employer. (opted to withdraw)
    4. From 11-Jun-2014 to current date Forth employer.

    During my all change in job I have transferred my PF to the new employer.
    I am now withdrawing my pf from my third employer the total number of years of accumulation is over 8 years. During my withdrawal now tax is being deducted.

    As per the rule tax is not deducted for consecutive period of 5 years of PF accumulation. But in my case they deducted the tax and only the remaining amount got credited to my account.

    Please help me how to proceed in this regards.

    Is this amount really taxable?
    If not how to get the money .

  2. I am currently working and hence contributing to my EPF account voluntarily for which I claim tax exemption. Now I plan to go on a 2 year study break after 4 years of employment for which I plan to resign from my current job. So if I withdraw my PF amount in the 5th year would the amount still be taxable. Can i withdraw the entire amount? Also, would I be able to withdraw the amount if I am not residing in India?
    Plus, I need an idea of how much tax would be deducted, if any, if my total investment in 4 years amounts to ~4,80,000

    • Hi Vivek, It is advisable to transfer your PF to new employer.
      However, if you withdraw before 5 years of continuous service, it will be taxed as follows:

      1. Total contribution by the employer plus interest (not taxed earlier) will be taxed under the head ‘profits in lieu of salary’.
      2. You will be taxed on the amount of tax benefit claimed for your contribution of EPF.
      3. Interest received on your own contribution to EPF will be taxed as ‘income from other sources’

  3. Prashant B Kulkarrni

    How to refund pf Amount

  4. Thanks for the descriptive writeup, definitely clarified things for me !
    I had a query though – I have worked for 6+ years with my first employer, and then with my current employer for 7+ years.
    I had transferred my pf account when I joined my current employer.

    Now I am planning to relocate to US for atleast 3 years, and so I am considering withdrawing from my pf account.
    Based on the post, I take it that I wont need to pay any tax and I will be able to withdraw the entire amount pf amount ?
    If I do come back to India, and my next employer asks for my UAN, will it create any potential problems with my pf then ?

    • As you are going out of India , you can withdraw PF amount fully.
      I don’t see any problem with PF / UAN once you come back.

  5. Hi sir I am working on jcpl .my company not issue my of no so I m not check my of balance.

  6. I have worked in my previous company about 20 months and don’t have cheque book. So if I submit, bank statement and pass book instead of cancelled cheque, is it acceptable by PF rules?

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