Do you want to prematurely withdraw funds from your EPF account but are confused about the process? With so much information all around, it can get confusing. In this post, we shall tell you how and when to use EPF withdrawal Form 31 online and offline, along with taxation on EPF premature withdrawals.
Using the EPFO member portal, you will be able to submit your EPF withdrawal Form 31 online – in minutes. Let’s continue.
EPF Premature Withdrawal – When Can I Withdraw Funds?
Employees can do a partial premature withdrawal or EPF advance using the EPF Form 31 from Employee’s Provident Fund in the following situations:
- Medical emergencies (self or family)
- Purchase/construction of flat/house/site
- For repayment of loan(s) in special cases
- On account of non-payment of wages or lockout/closure of establishment
- For marriage-related expenses
- For post-matriculation (after 10th) education of children
- Advances to buy equipment (for physically handicapped EPF member)
- 90% withdrawal before 1 year of retirement
More information here.
EPF Premature Withdrawal – Tax Implications
Income tax on EPF withdrawals is charged (wherever applicable) at the time of payment, i.e. the amount is credited to the claimant’s account after deducting tax. This is termed as TDS or Tax Deducted at Source.
Read about TDS implications on EPF premature withdrawals in this section:
Tax Deducted on Source or TDS is applicable on EPF premature withdrawal in the following cases:
- Less than 5 years of continuous employment: When an employee applies for EPF premature withdrawal before completing 5 years of continuous service, it is taxed at the applicable income tax rates.
That said, if the total amount withdrawn in less than Rs. 30,000 then TDS is not applicable.
On the contrary, if the total amount withdrawn is more than Rs. 30,000, TDS is applicable at 10% (and 34.608% if PAN is not furnished).
*Form 15G (15H for senior citizens) can be submitted along with the claim form so that TDS is not deducted on EPF withdrawals, wherever applicable)
- If EPF is unrecognised: Some EPF accounts come under the URPF (Unrecognised Provident Fund) category and withdrawals made from such accounts are taxable under the Income Tax rules. Such accounts are not approved by the Income Tax Commissioner and are thus labelled as URPF accounts.
TDS is not applicable on EPF premature withdrawal in the following cases:
- After 5 years of continuous service: If the employee has completed 5 years of employment (in the same organisation or different ones), withdrawals made from the EPF are not taxable
- If the member’s employment is terminated: due to ill health or discontinuation of business or completion of project of due to any other reason where employee had no control over it
- In case of transfer of PF from one account to another account (when changing job)
- On submission of Form 15G/H: In case of withdrawal amount more than Rs 30,000 with less than 5 years of service (PAN is mandatory); While form 15H is for senior citizens aged above 60 years, Form 15G is for everyone else
PF Advances/ EPF Premature Withdrawal: How to?
To withdraw money from one’s EPF account, member needs to submit Form 31. Form 31 can be submitted online by logging into the EPFO member portal using your UAN and Password. This form can also be submitted offline at the nearby EPFO office.
Disclaimer: Form 31 (for EPF non-refundable advances or premature withdrawals), Form 19 (for PF final settlement) and Form 10C (for pension withdrawal) – all 3 have been combined as one – EPF Composite Claim Form.
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|Read more about EPF Forms:|
|EPF Form 10C||EPF Form 19||EPF Withdrawal Form 31|
EPF Premature Withdrawal: FAQs
When an employee wishes to take out funds from their EPF account before retirement, it is termed as EPF premature withdrawal. Formally, such claims are known as EPF Non-Refundable Advances. are 55 years of age at least.
Members can submit Form 31 to apply for EPF advances. However, now this has been combined with Form 19 and Form 10C and renamed as EPF Composite Claim Form.
For PF Advance (or EPF premature withdrawal), quoting PAN is not necessary. However, in case of PF final settlement, PAN is to be quoted, especially when the service is of less than 5 years.
No. The total EPF amount cannot be taken out via money order.
Yes. As per the EPFO Response to Covid rules, members can partially and prematurely withdraw funds from the PF account.
Log into EPFO member portal using your EPF UAN and password. Now, click on “Online Services” and select “Track Claim Status” at the EPFO unified member portal. EPF claim status can also be checked via the UMANG mobile app. (UAN must be linked with Aadhaar for online services).