Old age is a sensitive phase for anyone where one needs proper care and support to lead a healthy, happy and worry-free life. This support is not just emotional but also financial. However, the cushion traditionally afforded in India by the extended family is falling apart because of the increasing urbanization that has resulted in widely spread out family members. With the given scenario, elderly people look forward to their life-long savings in the form of an Employee Provide Fund to be able to help cover the cost of their living and even support their children if required.
Employee Provident Fund (EPF), more commonly known as PF, is a mandatory retirement savings scheme that can be claimed by an employee on account of unemployment, retirement, or any other situation that involves the requirement of a good amount of funds. In some cases, the employee is also a part of the pension scheme along with the PF. However, the pension can only be withdrawn after attaining 60 years of age.
An EPF or PF account is managed by the Employee Provident Fund Organization - EPFO under the Government of India. It includes a portion of an employee’s salary along with a similar contribution from the employer and the government in some cases.
Here is a guide for the online PF withdrawal procedure, following which elderly people can easily withdraw their funds or pension.
Know Your Eligibility
Elderly people apply for the PF money withdrawal process due to various reasons listed on the EPFO portal. However, one should ensure that the prescribed eligibility criteria for their chosen reason are fulfilled before submitting the claim form.
Education or Marriage
● Eligible PF claiming procedure after 7 years of EPF membership.
● Education of son or daughter or marriage of son/daughter/brother/sister.
● 50% of employee’s share of contribution can be withdrawn along with the interest.
Purchase of land/Construction of house
● Eligible to apply for PF withdrawal procedure online after 5 years of EPF membership.
● Land should be in their or their spouse’s possession.
● 24 months’ basic wage and dearness allowance/Member’s and employer’s share of contribution with interest/Actual cost towards the acquisition of the land, can be withdrawn.
● 36 months’ basic wage and dearness allowance/Member’s and employer’s share of contribution with interest/Actual cost towards the construction of the house, can be withdrawn.
● 12 months’ basic wage and dearness allowance/Member’s share of contribution with interest, can be withdrawn in case of renovation.
● For their own treatment, or a family member.
● One can apply for a PF transfer procedure with 6 months’ basic wage and dearness allowance, or a Member’s share of contribution with interest.
In case of a pandemic like situation
● If the area is declared to be pandemic-affected, by the Government.
● A PF claiming procedure with 3 months’ basic wage and dearness allowance or Member’s and employer’s share of contribution with interest.
Non-receipt of wages or Unemployment
● Not received wages for more than 2 months continuously (reasons other than a strike)
● Employee’s share along with the interest can be considered for the PF fund withdrawal process.
● In case of unemployment for a continuous period of 6 months or more, he or she can withdraw 75% of the fund from the EPF account. The remaining 25% can be withdrawn after remaining unemployed for another 2 months.
Repayment of house loan
● Elderly people can apply for the provident fund withdrawal process online for the repayment of house loan after 10 years of continuous EPF membership.
● The loan of the house should be in the name of the applicant or the spouse.
● 36 months’ basic wage and dearness allowance/Member’s and employer’s share of contribution with interest/Amount of outstanding principal and interest of the loan can be withdrawn.
Withdrawal within one year before retirement
Herein, one can apply for the online process of provident fund withdrawal and claim 90% of the PF balance. However, they have to be over 54 years of age at the time of claim
Withdrawal for investment in Varishtha Pension Bima Yojana
After attaining the age of 55, people can begin the online process of provident fund withdrawal and claim 90% of the amount to be transferred to the Life Insurance Corporation in India and further invest in the Varishtha Pension Bima Yojana.
Documents Required for Online PF Withdrawal Procedure
As per the EPFO portal, you are not required to submit a list of documents for the online PF withdrawal process to claim the fund or pension amount. Only a scanned copy of the cheque/passbook has to be uploaded on the portal at the time of filling the form.
However, there are certain rules to be followed for a smooth and hassle-free claim process.
● An activated Universal Account Number (UAN)
● Aadhaar card linked with the UAN account.
● EPF account number must be KYC compliant.
● The mobile number linked with Aadhaar card should be active for the OTP verification.
● In case of retirement, the correct date of birth should be updated in the EPFO records.
● Bank details with the correct IFSC code should be mentioned in the EPFO records.
Filling the Form for Online PF Withdrawal Procedure
Follow the steps below to complete the online provident fund claim process.
● Visit the Member-sewa portal on the EPFO portal.
● Log-in to your account using your UAN number, password and a verification code.
● After successful login, click on the Claim (Form-31, 19, 10C & 10D) under the Online Service tab
● A new webpage will open asking you to enter your bank account linked with the UAN account. Enter the correct bank account number and click on verify.
● On successful verification, a pop-up window with the terms and conditions of the online provident fund claim process will open. Thoroughly go through the same and click on ‘Proceed for online claim’.
● Now, you will be required to select the reason for your claim from the dropdown menu. Please note that only the reasons mentioned in the drop-down menu are eligible for PF claiming procedure.
● Select one of the listed reasons and enter the amount (in case of an advance claim), upload the scanned copy of the cheque/passbook and click on ‘Get Aadhaar OTP’.
● Enter the one- time password sent to your mobile number linked to the Aadhaar card and click on submit.
You can always log-in into your UAN account through the EPFO portal to check the status of your online provident fund claim process. Simply click on the ‘Track Claim Status’ listed under the ‘Online Services’ tab.
In the case of PF pension withdrawal and status tracking, one can follow the same online process, however, subject to eligibility.
Taxation on PF Withdrawal/Claiming Procedure
No TDS is deducted when
● Claiming less than Rs. 50,000 from the fund/termination of employee/company lockout/huge employee layoff etc.
● Quitting job due to a serious medical condition
TDS is deducted when
● Applying for the PF money withdrawal process before completing 5 years of service. However, it is avoidable in case the total income is not taxable. A Form 15H/15G is to be submitted for the same.
● 10% TDS is deducted when PAN is furnished and around 35% when PAN is not furnished.
Get more help on senior citizen care with Emoha where we always keep #Eldersfirst.