While it is something that anyone is supposed to frown against, certain circumstances can force you to withdraw your retirement savings. If you have already considered the costs and benefits of your action, you can go ahead; learn how to withdraw PF online:
Who can withdraw PF
Having funds at PF does not automatically qualify you for a withdrawal. You must meet other conditions as well. One of these is that you must not be in any employment; you must have resigned from your previous working place at least two months from the date of withdrawal application. Secondly, you and the employer must confirm that you have left work. You must also present a cancelled bank account check.
In the actual sense, withdrawal is not an online process. The existing technology, the necessary bureaucracies, as well as well security considerations, make it difficult to run the procedure exclusively online. Right now, it is only possible to do online PF transfers. The organization however is making efforts to ensure that soon everyone will be able to carry out withdrawal entirely online.
That said, the following is the “EPF online withdrawal” procedure:
- Get the EPF withdrawal form. Also known as form 19, you can acquire this from an employer. Alternatively, log on to epfindia.com and locate the form in the download section.
- Fill up the form, make one or more copies, and keep them for reference.
- Forward the form to your previous employer so that they can fill it and return it to you.
- Attach all the necessary documents. Use the checklist that comes with the downloaded form to confirm that all the documents are in place.
- Forward these to your regional office.
Pension withdrawals are only given to employees who have made 10 years or more of continuous service. Continuous service does not include the period you spent unemployed; neither are your years of service for former workplaces compounded if you terminated previous scheme contracts while leaving those jobs.
For pension withdrawal, you will have to submit form 10 – C. On the other hand, you can choose to leave your pension money within the scheme so that you can earn regular pension payouts when you reach age 50.
If you are making a withdrawal within five years of opening your EPF account, keep in mind that it will be subject to taxation.
It is advisable that even when you face serious financial difficulties, you should not do withdrawal of your scheme funds, especially at an early period. Why can’t you instead opt for a loan? With that, every other benefit remains intact.
Moreover, even if you decided to withdraw your money due to an urgent need, it is less likely that you will be able to get the cash into your hands within the appropriate time frame. It takes something like five or six months for settlement to be done.
In short, PF withdrawals cannot meet your urgent needs. Therefore, get the funds you need through another means and still secure your retirement. But go ahead and withdraw if you consider it the best choice.