Winning Bizness Desk
Mumbai.
- Cancelled cheque or passbook copy no longer required for PF withdrawals
- EPFO enables fully digital withdrawal process
- UPI and ATM-based withdrawals to start by June
- 75% PF withdrawal allowed after one month of job loss
- Tax exemption applicable after 5 years of continuous service
The Employees’ Provident Fund Organisation (EPFO) has simplified the procedure for withdrawing money from the PF account. Members are no longer required to upload a cancelled cheque or a copy of their bank passbook to verify their name while filing a claim. This change is aimed at making the process smoother and more accessible for salaried employees, especially those who rely on digital systems.
Step-by-Step Guide to Withdraw PF
TTo withdraw funds from the PF account, members must log in to the official EPFO portal at https://unifiedportal-mem.epfindia.gov.in/memberinterface/. After entering their UAN, password, and captcha, users receive an OTP to authenticate the login. Next, they need to go to the ‘Online Services’ tab and select Form 31, 19, or 10C from the drop-down list. They are then required to enter and verify their bank account number. After choosing the appropriate form, they must specify the withdrawal amount, reason, and address. Once verified, they can submit the request using Aadhaar OTP. Notably, the system no longer asks for a cancelled cheque or passbook image, reducing documentation hassles.
ATM and UPI Withdrawals Soon
In a significant upgrade to user convenience, EPFO will soon allow its members to withdraw money using UPI or ATMs, with a withdrawal limit of up to Rs 1 lakh. This facility is expected to roll out by the end of May or early June 2025. Members will receive a special EPFO Withdrawal Card similar to a debit card, which can be used at ATMs to access PF funds. In addition, UPI-based services will let users link their PF accounts and transfer funds to their bank accounts directly.
Partial Withdrawal in Case of Job Loss
As per existing rules, if an EPFO subscriber loses their job, they are eligible to withdraw up to 75% of their PF balance after one month of unemployment. This provision supports individuals during financially difficult periods. The remaining 25% can be withdrawn if the unemployment continues for another month, completing a total of two months without a job.
Tax Rules on PF Withdrawal
PF withdrawals are tax-free if the employee has completed five years of continuous service, even across multiple employers. However, if the withdrawal exceeds Rs 50,000 before completing five years, a 10% TDS is applicable. If the employee does not have a PAN card, the TDS can rise to 30%. However, submitting Form 15G or 15H can help avoid TDS deductions under eligible conditions.
