Provident Fund (PF) of the employee is the fund which is made up of by the employer and employee together during the employment. Generally 12% of the basic salary of employee deposited to PF account and the same amount deposited by the employer. Withdrawal of Provident Fund from EPF account is not allowed while you are still employed. But in case emergency, you can withdraw the amount from your PF account.
How To Withdraw PF Amount
You can withdraw this amount when you switched your job and you don’t want to transfer your Provident Fund (PF) account. There are two ways by which you can withdraw PF amount is given below.
- Withdrawal PF Amount Using UAN (Universal Account Number): If you have UAN (Universal Account Number), You don’t need the approval of your previous employer to process the withdrawal application. You can directly apply for PF amount withdrawal usingForm-19which is available at Employer OR you can download it from the official website of EPFI. But you can use this option If you don’t have your UAN (Universal Account Number).
- Withdrawal PF From regional Office: You can withdraw your PF amount by applying through the Regional PF Office. To withdraw PF amount you have to follow the following steps given below:
- Get the PF withdrawal form (Form-19) from the Regional PF office OR download it from the official website of EPFI.
- Fill all the required details in the form.
- Your form needs to be attested by Any Bank Manager/ A Gazetted Officer/ Magistrate/ Notary Public/ Post Master to verify that the right person is applying for PF amount withdrawal.
- To minimise the chance of fraud application, EPF generally ask for a letter to provide the reason behind the direct application for withdrawal of PF amount.
- You should also attach the proof of employment letter (If available).
Note: Once your application form submitted to the Regional PF Office. You will receive the PF amount along with the Interest within three months from the date of submission of application form.
Why You Should Not Withdraw PF Amount Early
Withdrawal of Provident Fund (PF) Amount is against the rules. But in case emergency, you employee withdraw the amount from their PF account when employee switched job and don’t want to transfer his/her Provident Fund (PF) account.
There are several reasons why you should not withdraw you PF amount until you need it badly.
- The employee gets the high rate of interest (8.75% per annum) on PF amount.
- PF amount is useful after the retirement for the stress-free life of the employee.
- If you withdraw PF amount after 05 years of opening the account, the interest earned will be tax-free. But if you withdraw the PF amount within 05 years of opening the account, you have to pay tax on the interest earned.
- If you switched your job, You can easily transfer you PF account. So you don’t need to withdraw the PF amount.