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.
Steps to withdraw PF Balance at time of resignation
- To withdraw your PF and Pension after leaving employment, you need to fill and submit two forms – Form 19 (for PF amount) & Form 10C (for pension portion) https://epfindia.gov.in/downloads_forms.html
- You need to submit these forms to your previous employer. Read my other post on – How to withdraw PF without Employer’s Signature
- 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
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total continuous service for less than 5 years with the current and previous employers, if any, then the entire PF withdrawn will be taxed in the year of receipt of the accumulated PF.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 However, you need to report the PF amount withdrawn in the tax return form in the relevant schedule for reporting purposes.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 withdraw PF Balance online, PF withdrawal form online download form 19 form 10c pf withdrawal rules, pdf form, withdraw pf before 5 years