Different Types Of EPF Accounts And How Can You Withdraw Them


EPF is a fund which is composed of contributions from the employee during the time he/she worked along with an equal contribution by his employer. Provident fund is calculated as 12% of his/her basic salary & the employer contributes the same amount.

Types of EPF Accounts:
● Statutory Provident Fund: All the Government and Semi-Government officials, loc   authorities, and educational institutions are under this type          of EPF. It was set up under the guidelines of the Provision Funds Act, 1925.
     Recognized Provident Fund: This type of EPF is for the establishments that are recognized by Income Tax Commissioner. For the establishment to be     formulated, an organization should have 20 or more members.        
 Unrecognized Provident Fund: The EPF that is not recognized by the Income Tax Commissioner is called an unrecognized provident fund.
  Public Provident Fund: This type of EPF, has been established for either   salaried employees or a business employee, to do so they should first open an EPF account at their respective banks.

EPF Withdrawal Rules
EPF withdrawal Rules are made to ensure that the employees follow the guidelines, and also the bank ensures that the employees instead of using the EPF save it for the future. There are some rules that the employees need to follow for withdrawing EPF:
     Tax is applied to all the withdrawals that are made before five years. And the withdrawals that are made after five years are tax exempted.
     Withdrawal is   tax-free if the employee is now unemployed due to health issues or            some valid reason.
     The principal   amount and the interest on the amount, are not tax-free if the          withdrawal is made before five years.
     Only in the case of an emergency like a medical emergency, house purchase or   some construction, the employee can make a partial withdrawal.
     While one is employed, he/she cannot withdraw money from the EPF.
     After two months of unemployment, one can withdraw 100% EPF.
     According to the provision, one can withdraw the EPF amount only after     retirement, even if there is the case of early retirement, the person should be older than 55 years.
     To withdraw the EPF money, one has to declare his/her unemployment.     

EPF Withdrawal Procedure
Lately, there were changes made by the EPFO, and now the employees do not need the declaration from their employers to make a partial or a complete withdrawal. They need to ensure that their Universal Account Number is seeded with their Aadhar details. The employees can perform the whole withdrawal process online either on the EPFO portal or the UAN portal.

EPF Withdrawal Reasons
The employees can either make a partial withdrawal or a complete withdrawal under the following cases:
     For wedding and education expenses           
     When they are moving abroad permanently
     If a female employee is resigning due to reasons such as childbirth, getting married, pregnancy, etc.
     Member has reached the age of retirement
     Medical emergency
     Capital for house construction or some loan

Steps for online withdrawal of EPF balance        
Step 1 - Open the EPFO portal
Step 2 -under the tab “Our Services.” ,Select the “For Employees” option 
Step 3 -On a new webpage, select the option with “Member UAN/Online
Step 4 -Services”
Step 5 -You’ll be redirected to a new webpage. Log in to your account using the
Step 6 -UAN, password and the Captcha code.
Step 7 -Click on KYC option
Step 8 -Check all your KYC details and verify them.
Step 9 -in Tab option  “Online Service ” where you Select the “Claim Form”
Step 10 -You’ll be redirected to a webpage called “ONLINE CLAIM FORM 31, 19 ^ 10C” form.
Step 11 -Enter your bank account number
Step 12 -Verify your bank and certify it.
Step 13 -Click on the Advance Form 31        
Step 14 -Select the reason from the various options
Click on the checkbox, and once the request is sent for the withdrawal amount, the amount will be sent to the bank account.
EPF or Employee Provident Fund is a kind of pension, where the 12% amount from the employee’s salary is deposited in a separate account for future savings.

There are four types of EPF: Recognized Provident Fund, Public Provident Fund, Unrecognized Provident Fund, and Statutory Provident Fund.

There are three types of EPF Withdrawal: PF final settlement, PF partial withdrawal, and pension withdrawal benefit.

Some rules and guidelines have to be followed while withdrawing the amount from the EPF account. Some of the latest withdrawal rules are: money from the EPF account can only be withdrawn when one is unemployed for 2 or more months or retired, partial withdrawal of the amount is only accepted in the case of emergencies, early retirement is not accepted, 100% withdrawal after the 2 months of unemployment, and many more.

To withdraw the provident fund or pension fund one has to submit the PF Withdrawal Claim Forms. The employees need to meet the requirements, to ensure the withdrawal process. There are certain steps to make online EPD Withdrawal.
Different Types Of EPF Accounts And How Can You Withdraw Them Different Types Of EPF Accounts And How Can You Withdraw Them Reviewed by Durgesh Thakur on March 26, 2019 Rating: 5

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