Provident fund (PF) is a retirement savings scheme for employees in India, which is designed to provide financial stability in old age. PF is a mandatory contribution
Provident Fund (PF) is a long-term investment scheme that provides financial security to employees during their retirement. It is a compulsory contribution made by the employer and the employee towards a common pool of funds. In India, the Employees’ Provident Fund Withdrawal of PF balance is allowed in certain circumstances, such as resignation, retirement, unemployment, and termination of service. In this article, we will discuss “How to Withdraw PF Online After Leaving Job?”
The rules regarding the withdraw pf online after resignation are governed by the Employees’ Provident Fund Organisation (EPFO). The rules state that employees can withdraw the entire amount in their PF account if they have been unemployed for two months or more. This means that if an employee resigns from their job, they can withdraw the entire amount in their PF account two months after their last working day.
However, some certain restrictions and conditions must be met before an employee can withdraw the entire amount in their PF account. One of the most important conditions is that the employee must have completed a minimum service of five years in the current organization. If the employee has yet to complete five years of service, they can only withdraw the amount they contributed to the PF account without any interest.
Procedure for PF Withdrawal After Resignation
The procedure for PF withdrawal after resignation is as follows:
- Submit Form 19: The first step towards withdrawing the PF balance is to submit Form 19 to the current employer. This form can be obtained from the EPFO website or the nearest EPFO office. The form must be signed by the employee and submitted to the current employer along with a canceled cheque or a bank passbook.
- Transfer of PF Account: If the employee has changed jobs and has multiple PF accounts, they can transfer their previous account to the current one. This can be done by submitting Form 13 to the current employer.
- Approval of Withdrawal Request: After the form is submitted, the current employer will verify the details and approve the withdrawal request. The process may take up to 20 days from the date of submission.
- Payment of PF Withdrawal Amount: Once the withdrawal request is approved, the accumulated balance in the employee’s PF account will be credited to their bank account. The payment may take up to 30 days from the date of approval.
Eligibility to Withdraw PF Online After Leaving Job
An employee is eligible to withdraw pf online the accumulated balance in their PF account after resigning from their job if the following conditions are met:
- The employee should have completed two months of continuous service with the current employer.
- The employee should have served a notice period of one month or should have paid the equivalent amount to the employer.
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Taxation of PF Withdrawal After Resignation
The withdrawal of the PF balance is taxed if the employee still needs to complete five years of continuous service with the current employer. The tax is deducted at the source as per the prevailing tax laws.
EPFO Pension Withdrawal Rules
Understanding the EPFO pension withdrawal rules is essential for every Employee Provident Fund (EPF) account holder. These rules dictate the conditions under which a member can withdraw their accumulated pension amount. Typically, a member can opt for pension withdrawal upon retirement at the age of 58.
However, in specific circumstances like prolonged unemployment, the EPFO pension withdrawal rules allow for an early claim. Always refer to the latest guidelines provided by the EPFO to ensure compliance, as the EPFO pension withdrawal rules can be updated periodically based on prevailing socio-economic conditions.
Exceptions to the Rule
There are exceptions to the rule where employees can withdraw their PF balance without completing five years of continuous service. These exceptions include the following:
- Illness: If the employee suffers from a serious illness and requires funds for medical treatment, they can withdraw their PF balance.
- Hardship: If the employee is facing financial hardship and requires funds for meeting essential needs, they can withdraw their PF balance.
- Disability: If the employee has become permanently disabled and cannot continue with their employment, they can withdraw their PF balance.
Impact on Future EPF Contributions
Reduction in Retirement Benefits:
- Withdrawing the EPF balance before completing five years of continuous service will reduce the employee’s retirement benefits.
Future Contributions:
- The employee’s future EPF contributions will also be impacted if they withdraw their EPF Registration balance before completing five years of continuous service.
Conclusion
The withdrawal of the PF balance after resignation is allowed if the employee has completed two months of continuous service and served a notice period of one month or has paid the equivalent amount to the employer.
The procedure for How to Withdraw PF Online After Leaving Job involves submitting Form 19, transferring the PF account if required, and obtaining approval for the withdrawal request. The withdrawal amount is taxed if the employee still needs to complete five years of continuous service with the current employer. Exceptions to the rule are available in cases of illness, hardship, and disability.
FAQs on Withdraw PF Online
Yes, you can withdraw your full Provident Fund (PF) amount after resignation. However, if you withdraw before completing 5 years of continuous service, the amount will be taxable. It is recommended to transfer the PF balance to the new employer's account or keep it invested for the long term to earn interest and avail tax benefits.
If you don't withdraw your Provident Fund (PF) after resignation, the account remains active and continues to earn interest. You can keep it inactive until you decide to withdraw or transfer it to a new employer. However, if the account remains inactive for a certain period, it may be classified as a dormant account and may require additional documentation to withdraw pf online.
No, it is not possible to withdraw 100% of your Provident Fund (PF) while you are still working. PF is a retirement benefit and is meant to provide financial security to employees after they retire from their job. However, in certain cases such as medical emergencies, home loan repayment, or education expenses, partial withdrawal may be allowed subject to certain conditions. But complete withdrawal is only possible when you retire or leave your job permanently.
Yes, PF withdrawal can be rejected by the Employee Provident Fund Organisation (EPFO) for various reasons such as incomplete or incorrect details, insufficient balance, mismatch in details, etc. It is important to ensure that all the necessary documents and details are provided accurately to avoid rejection. Can I Withdraw My Full Pf Amount After Resignation?
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Can We Withdraw 100% Pf While Working?
Can Pf Withdrawal Be Rejected?
