Wednesday, December 6, 2023
HomeBusinessFinanceHow to withdraw funds from my PF corpus

How to withdraw funds from my PF corpus


I hold two Provident Fund (PF) accounts with a gap in between the jobs. The first job was from 2015 to 2017 and the second from 2020 to 2021. The reason for the gap was that the intermediate job didn’t have any provision for the PF as it was under a fellowship. My present job also has no provision for PF. Now, I have around 70,000 in my Universal Account Number (UAN) with two PF accounts. I have tried withdrawing the funds multiple times but to no avail. What would be the best way to withdraw the maximum amount from it as I want to use this sum to pay off my home loan instalments. 

Also, since my work keeps me making such shifts from fellowships to full-time jobs, what should I do in order to ensure a smooth transition of my PF account? 



We understand that you have contributed towards the Employee Provident Fund (EPF) account during the period 2015 to 2017 and 2020 to 2021 with two different employers as per the provisions of the Employees’ Provident Fund and Miscellaneous Provisions Act, 1952. You have not transferred the PF accumulations with the first employer to the second employer. We assume you are an Indian citizen and your PF account is maintained with the Employees’ Provident Fund Organization (EPFO) and not through a private PF trust of your employer.

As per the provisions of the EPF scheme, post cessation of employment, a member may withdraw the EPF accumulations from the fund if he/she is not employed at any other establishment, where the provisions of EPF is applicable, in the preceding two months from the date of making withdrawal application. Considering that your present employer is not covered under the provisions of the EPF Act, you are eligible to withdraw the entire amount of EPF accumulations.

While submitting the claim form online, among the other requirements, you need to ensure that the date of exit / cessation of employment is updated by both the erstwhile employers, KYC documents are uploaded and approved by the employer, Aadhaar number is seeded/ linked with your EPF account, mobile number is tagged with the Aadhaar, etc. In case you still face challenges in withdrawal of EPF accumulations through the online procedure, you may evaluate visiting the concerned EPFO office to identify the reasons for rejection.

With respect to your future employment, if you have an existing EPF balance from your previous employer and your new employer is a covered establishment, you may transfer the EPF accumulations to your new employer EPF account. In case your new employer is not a covered establishment, you may choose to withdraw the previous accumulations as discussed above. To ensure smooth transfer / withdrawal of EPF accumulations. you need to ensure that your EPF records and UAN are updated.

We have not commented on the implications under the Income-tax Act of transfer/ withdrawal, which will need to be separately analysed.

Parizad Sirwalla is partner and head, global mobility services, tax, KPMG in India.

Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint.
Download The Mint News App to get Daily Market Updates.



Source link


most popular

Recent Comments