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 Though, it is advisable that provident should not be withdrawn as it is a perfect support for elderly age because one will not be able to work at that age.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Ø The amount withdrawn from the Employee Provident Fund before 5 years of opening the account becomes taxable.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.Sponsored Links
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Provident Fund can be withdrawn after a period of 2 months of resignation from a company.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.
- At first, the applicant is required to login to the EPF site and download Form 19.
- Fill in the complete details with the Provident Fund Account Number, Employee Code and the Company details.
- 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.
- After completing all the papers, the form with relevant documents is required to be submitted at EPFO (Employees Provident Fund Organization).
- 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.Sponsored Links