How to Withdraw PF Online After Leaving Job: Transferring your PF to your new workplace might help you avoid paying taxes on its interest. Merging all of your PF accounts with each new job shift is an excellent strategy to ensure that you have adequate money in your post-retirement fund. Read on!
A Provident Fund, or PF, is a portion of your pay that is deducted on your behalf on a monthly basis. When you leave your work, you can collect your PF balance.
Many people do not get their PF (provident fund) or do not transfer their PF from their prior company to their new employer when they change jobs.
The fundamental reason for this is that the funds continue to receive tax-free returns and remain safe with EPFO (Employees’ Provident Fund Organisation).
However, the Income-Tax Appellate Tribunal (ITAT) has abolished the tax exemption on interest profits after leaving employment.
To avoid paying taxes on interest after departing your work, you must withdraw the funds or transfer the PF to the new company.
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PF Withdrawal – When is it Possible to Withdraw Your PF Balance?
The overall PF (Provident Fund) amount includes both your and your employer’s contributions, as well as any accumulated interest.
According to the Employees Provident Fund Act of 1952, if you resign from your work beyond the age of 58, you can withdraw the whole PF money and also claim the EPS amount (Employees’ Pension Scheme amount) at the same time.
If you have retired from your service and have been jobless for two months (60 days), you can collect the entire PF amount even before reaching the age of 58.
The PF and EPS amounts cannot be taken after 10 years of service since your company is required to pay you with pension benefits once you have completed 10 years of service.
You can withdraw your PF and EPS amounts by completing the EPFO composite form, which will handle your withdrawals, transfers, advances, and so on.
One thing you should remember before beginning the withdrawal process is to integrate all of your prior PF accounts.
PF Withdrawal Plus EPS Amount:
There are two ways to withdraw your PF (Provident Fund) and EPS (Employees Provident Fund) amount: one with your Aadhaar card number and the other without.
Using an Aadhaar card simplifies and shortens the procedure; conversely, not using an Aadhaar card lengthens the procedure. Here’s how to withdraw your money with and without an Aadhaar card:
If you do not have an Aadhaar card but have your PF number, you can fill out the Composite Claim Form (Non-Aadhaar).
If you have not completed 5 years of service, you must fill out all required facts such as your PAN (Permanent Account Number), and attach two copies of form 15G or 15H.
You can enter your PF account number if you do not have a UAN (Universal Account Number).
With Using Aadhaar Card:
If you have an Aadhaar Card, you must submit a Composite Claim Form (Aadhaar) straight to the EPFO office without the certification of claim from your employer.
You must include a voided cheque with the form, and your whole PF balance amount could be sent to your bank account.
Conditions for Withdrawal of PF
The PF withdrawal procedure has four requirements. Take note of all the conditions and select the appropriate form.
1. If you remove your PF balance and EPS amount before you have completed 10 years of service:
If you haven’t completed 10 years of service, you can claim both the PF and the EPS amount. You just need to complete the Composite Claim Form and choose both the ‘Final PF balance’ and the ‘pension withdrawal’ choices.
If you intend to work again, you can complete Form 10C and obtain the scheme certificate’.
2. If you are withdrawing your PF balance and EPS after 10 years of service:
You cannot withdraw the EPS amount if your service tenure exceeds ten years. To get the scheme certificate, complete the Composite Claim Form along with Form 10C. After reaching the age of 58, you will be eligible for a pension.
3. If you withdraw your PF balance and EPS amount between the ages of 50 and 58 (after 10 years of service):
If you are between the ages of 50 and 58 and have served for ten years, you are eligible for an early pension (reduced pension). You will just need to fill out Form 10D and the Composite Claim Form for this.
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4. If you withdraw only your PF balance together with your entire pension beyond the age of 58:
If you have reached the age of 58, it is extremely straightforward to obtain the entire pension claim. You will just need to submit Form 10D.
Choose and submit the form that best matches your situation to reap the advantages of the EPF (Employees Provident Fund) and PF (Provident Fund) schemes once you retire.
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