Considered a savings tool for the workforce, the Employees’ Provident Fund is a scheme managed by the Employees' Provident Fund Organisation (EPFO).
Considered a savings tool for the workforce, the Employees’ Provident Fund is a scheme managed by the Employees’ Provident Fund Organisation (EPFO). Under this scheme, both employer and employee contribute an equal share in the benefit of the latter.
EPF rate of interest for 2019 has been spiked to 8.65%. One can utilise these funds saved in the PF online account for post-retirement expenses.
This accumulated corpus in the provident fund account can be withdrawn post-retirement or prior to it under exceptional circumstances that include –
- Repaying home renovation or construction loan
- Real estate purchase
Based on the cause of a withdrawal, individuals can draw 50% to 90% of this amount (in cases of partial withdraw). However, individuals going for early withdrawal may attract PF tax in case he/she has not rendered continuous services for at least 5 years. Considering that this withdrawal facility is provided for the convenience of an account holder, the process to withdraw the PF amount has been made straightforward and hassle-free.
Rules for PF withdrawal
For those who have an idea about what is PF, they can conveniently withdraw the complete or partial amount either by online or offline mode –
- PF offline withdrawal
Step 1: Visit the official website of EPFO and download either Aadhaar or non-Aadhaar composite claim form.
Step 2: Fill in your Aadhaar composite claim form and submit the same to your respective jurisdiction office of EPFO.
Alternate step 2: Fill in your non-Aadhaar composite claim and get it attested by your employer. Furnish this paperwork with your respective jurisdictional EPFO office.
In case of partial offline PF withdrawal under the aforementioned circumstances, the authoritative body has set aside the requirement of furnishing a few documents and introduced a beneficial option to go for self-certification.
- PF online withdrawal
The online PF withdrawal process is a recent launch aimed to make the process hassle-free and is exceptionally beneficial for those planning finances for early retirement. However, there are some pre-requisites that one needs to meet before going for the online withdrawal process –
- Your UAN should be activated.
- The mobile number used for the activation of UAN should be in working condition.
- UAN should be linked with KYC (bank details with IFSC code, Aadhaar and PAN details).
Following the presence of the above, the requirement to get your employer’s attestation can be done away with.
Additionally, one can also go forward with the PF online withdrawal process that involves these steps –
Step 1: Visit the UAN portal.
Step 2: Login with your UAN and password. Enter the captcha displayed.
Step 3: Select the ‘Manage’ option and click on KYC. It enables you to check if your KYC details are verified and correct or not.
Step 4: Post-verification of KYC details, select the ‘Online Services’ tab and click on ‘Claim (Form-31, 19 & 10C)’ from the drop-down menu displayed.
Step 5: This screen for ‘Claim’ option displays various member details – service and KYC information. Provide the last 4 digits of your bank account, followed by clicking on ‘verify’.
Step 6: Go for ‘Yes’ and sign the certificate of Undertaking. Select ‘Proceed’.
Step 7: Select ‘Proceed for Online Claim’ tab.
Step 8: Under the tab ‘I Want to Apply for’ in this claim for, select among the options –
- Pension withdrawal
- Full EPF Settlement
- PF Part withdrawal (Advance/loan)
Step 9: Go for ‘PF Advance (Form 31)’ and provide the reason for your withdrawal. It is followed by the keying of details like employee’s address and the required amount of withdrawal.
Step 10: Click on the certificate and submit this form.
It is followed by the submission of scanned copies of the required documents and the approval of the same. The withdrawn PF amount is transferred into your account within 15 to 20 working days.
You can manage your post-retirement finances better by investing the amount in various investment schemes that render attractive and guaranteed returns.
Investing in fixed deposit is one of the most beneficial options as you receive:
- Attractive rate of interest for senior citizens that makes life easier in the golden years.
- Higher stability of your corpus
- Auto-renewal option
- Hassle-free application process.
Approaching reputed financial institutions like Bajaj Finance and investing in their Fixed Deposits ensures that individuals have convenient access to the lucrative features and benefits of an FD.Make sure to invest and utilise your PF online funds responsibly, especially if you are retiring. Ensure to take an informed decision while choosing the best saving schemes In India to gain attractive returns on the corpus.