EPF Withdrawal

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Provident Fund is a saving scheme run under the authorization of Indian Government through Employees Provident Fund Organization. It is said to be a retirement corpus, which includes a part of the employee’s salary getting deposited on monthly basis. It earns an interest of more than 8 percent and comes with a wide variety of facilities like insurance coverage too. When it comes to withdrawing of Provident Fund, one has to wait for a period of more than 2 months to apply.

Rules Associated with PF Withdrawal:

As known, Provident Fund is an important form of financial assistance that allows the employees to enjoy cash benefits at the time of unemployment.  In emergency situations, PF can be given within 2 months of leaving the existing job. Though, it is advisable that provident should not be withdrawn as it is a perfect support for elderly age because one will not be able to work at that age.

Ø  No employee is entitled to apply for Provident Fund within two months of leaving the job.

Ø  The amount withdrawn from the Employee Provident Fund before 5 years of opening the account becomes taxable.

Ø  Withdrawal of PF amount from the earlier job is not advised for the employees already doing job in some other company.

Ø  The applicant is required to fill EPF form with proper details and stamp it from the previous employer.

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Process of Withdrawing Employee’s Provident Fund:

Claim Status: http://www.epfindia.com/site_en/WhichClaimForm.php

Provident Fund can be withdrawn after a period of 2 months of resignation from a company. In case of emergency, the withdrawal can be done before this time period also. But, one has to undergo a certain withdrawal procedure stated by the Government of India.

  1. At first, the applicant is required to login to the EPF site and download Form 19.
  2. Fill in the complete details with the Provident Fund Account Number, Employee Code and the Company details.
  3. Followed by this, the applicant is required to attach necessary documents. These may call for resignation letter, clearance letter, experience certificate and bank details in that particular company.
  4. After completing all the papers, the form with relevant documents is required to be submitted at EPFO (Employees Provident Fund Organization).
  5. On submitting the form with documents, enquiry takes place for verification of documents. Further to this, the balance gets transferred to the bank account after a period of 2 to 3 months.

Proposed Plan for Employees Provident Fund Online:

It was in July 2015 that Government of India proposed to present a plan for launching EPF withdrawal online. But, with a delay in the implementation of the plan, it is in a pipeline phase and will very soon see a spotlight. It is the support of online facility that the withdrawal will be much easier and people would not have to stand in queues at the EPFO for submission of forms.

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