The process of close PF registration is not a complicated ones except in rare circumstances where documents are missing.
Opening or Close PF Account (EPF) is not as simple as opening a bank account. An EPF account can only be closed in specific scenarios, and these include:
In Case of Employee’s Death: In the unfortunate event of the employee’s demise, the full EPF amount is paid to the nominee previously nominated during the account’s initiation.
Upon Leaving the Company or Retirement: An employee who leaves their job or retires can withdraw the full EPF amount. However, certain conditions must be met to initiate the PF withdrawal procedure.
For those who have left their job, the procedure for PF withdrawal varies depending on factors like service period and age.
Contractors are required to file monthly PF returns. If you fail to do so, you may face dire consequences from government enforcement agencies. So when situations cannot permit you to fulfill your obligations to the government, you may want to surrender your PF registration. Read this article to learn about how to surrender pf registration.
Is It Possible to Close PF Account?
Close Your PF Account before retirement is subject to specific conditions, and the withdrawal process can be initiated online or offline, depending on your preference.
Having a Universal Account Number (UAN) makes the withdrawal process more convenient, and it’s essential to understand the withdrawal forms based on your requirements. The time taken for the withdrawal process can vary depending on the method chosen and other factors.
How To Withdraw PF Amount From EPF Account?
1: Online Method
- Visit the official website of the Employees’ Provident Fund Organisation (EPFO).
- Log in using your Universal Account Number (UAN), password, and captcha code.
- Under the ‘Online services’ tab, select ‘Claim (Form-31, 19, 10D & 10C).’
- After entering the necessary information, click on ‘Verify.’
- Choose ‘yes’ to sign the ‘Certificate of Undertaking.’
- From the drop-down menu, select ‘only PF withdrawal (Form 19).’
- Provide your complete address, accept the disclaimer, and click on ‘get Aadhaar OTP.’
- You will receive an OTP on your registered mobile number.
- Enter the OTP and submit your application.
- After successful submission, a reference number will be generated.
- Within 15-20 days, you will receive the full amount in the bank account linked with your UAN.
2: Offline Method
- Download the Composite Claim form (Aadhaar and non-Aadhaar) from the official EPFO website.
- For the Composite Claim form (Aadhaar), fill it out and submit it to the respective jurisdictional EPFO office without requiring attestation by your employer.
- In the case of the Composite Claim form (Non-Aadhaar), fill it out and submit it to the jurisdictional EPFO office with the attestation of your employer.
Please note that in the offline method, the process may require more time compared to the online method.
Documents Required for EPF Withdrawal
When registering an EPF claim online, you don’t need to provide documentation. However, you must upload a scanned copy of your passbook or checkbook on the EPFO portal. Also ensure that all details, such as your bank account number, IFSC code, and name are visible.
Terms and Conditions for EPF Account Closure Online
- The first scenario is when you have a work record of 10 continuous years in the company and are between 50 and 58 years old, you can claim an easy withdrawal. Note that you need to fill form10 and composite claim form.
- You are not permitted to withdraw the amount designated for your Employee Pension Plan (EPS) if you have worked for more than 10 years but are under 58 years of age. The pension will only be paid to you after you retire.
- You are eligible to get the full amount of both the PF and EPS if you haven’t worked for a company for ten years. In this instance, you must select “Final PF Balance” and complete the “Composite Claim Form.”
- If you are 58 years of age or older, you can file Form 10D to claim EPS and withdraw your whole EPF balance.
Can a Contractor Surrender Provident Fund Registration?
You can’t cancel your registration when your organisation registers to the employee provident fund organisation and is successfully admitted. It is strange. However, such provisions are put in place to safeguard against certain irregularities.
When a company downsizes or reduces operations to the point that you have less than 20 employees, you are still required to file periodic returns with the provident funds. Even when the company or organisation reduces to a single employee, you are required to file returns.
However, when a contractor goes out of business, there is nothing to file. In such instances, you are advised to surrender the PF.
What Is the Meaning of Surrendering PF?
As you learned earlier, PF Registration cannot be canceled. However, it can be surrendered. You permanently give up your membership when you ask for this provision. No contractor would desire such a situation, but sometimes it is unavoidable.
How to Surrender PF Registration?
Surrendering PF registration is not a simple process. Relevant government bodies want to ensure that you meet the criteria for permanent closure. You cannot blame them because unscrupulous contractors and business people don’t want to pay their fair share of employees’ provident fund contributions.
You cannot cancel your registration with the Providence fund online. You are required to go to the office where you were registered.
Here Are the Steps to Follow to Surrender PF Registration
Surrender of PF registration should not be a daunting experience. However, if you don’t know what you are doing, it may become a little challenging. Hopefully, you shouldn’t face any difficulty after going through this guide.
- Put together all files and data associated with ESIC and PF registration. When responsible officials start inspecting your files, you don’t want to start running around looking for documents.
Some of the Documents You May Be Required to Present at the PF Office Include
- Tax documents from the sales tax department. This is a monthly or quarterly sales tax return businesses are required to file with the tax agency.
- Surrender of telephone document. Walk to your service provider’s office, fill out surrender forms and be out in no time. The process is easy, especially if you don’t have any pending bills with the service provider. In some cases, they may try to convince you to retain your telephone; just let them know you have made up your mind so that you don’t waste time.
- Surrender of trading license where necessary. Fill out the surrender form, deliver it in person, or mail it to relevant authorities. However, there may be situations where you may not be required to present your trading license.
- You’ll also be required to present IT, and GST returns for the previous two years.
- You must also present a receipt indicating payments for exit employees. You should have the necessary proof that you have contributed to the PF as demanded. However, if for some reason the receipts are not available, inform the nearest EPFO office
- Fill out the surrendering of connection form online and wait to hear from your service provider. Surrender of electricity documents will be required.
- The EPFO requires the closure of bank account documents. If you have not yet closed your business bank accounts, ensure to do so before visiting EPFO offices. PF officials want to be sure your business is not operational anymore.
- In most cases, you may also be asked for dissolution of the lease or rental deed.
- Factory owners are required to present proof that machinery has been sold.
Depending on the circumstances, you may be required to present other documents, such as an affidavit from company directors or the board of trustees.
Utilise Vakilsearch’s PF Calculator to estimate how much money you will have in your account upon retirement.
Steps for the Surrender of PF Registration Include
Before you do anything, you must apply to the PF commissioner, where you were registered. Provident fund commissioners act as the chief executives of the organisation. The commissioner oversees the operations of the fund on behalf of the board. They are responsible for the daily activities of the fund, such as registering new members, enforcing rules, and Close PF Account where needed.
Inspection of your claim by relevant officials. When the commissioner receives your application, they’ll assess your claim thoroughly. It would help if you made all relevant documents readily available. Otherwise, it will stall the process.
The time taken to process the claim varies from business to business. If you have any pending unresolved matters with the employees’ providence fund organisation, surrendering your registration may take longer. Responsible government officials will ensure all pending matters are settled before proceeding further. Such pending matters may include missing payment receipts or discrepancies in return fillings.
If you feel the process is taking longer than necessary, you may want to enlist the help of an agency experienced in handling such matters. Otherwise, you may end up wasting quality time and resources.
It’s actually not possible to Close PF Account permanently online! Close Your PF Account is only applicable under specific circumstances, and it doesn’t involve permanent closure. Here’s what you need to know:
Scenarios for Account Closure
- Retirement: Upon retirement, you can withdraw your entire EPF corpus, effectively “closing” the account.
- Job Change: If you switch jobs, your EPF account remains active, and the funds are transferred to your new employer’s account. You can also choose to withdraw your PF balance under specific conditions like:
- Unemployment: After one month of unemployment, you can withdraw 75% of the corpus and the remaining 25% after two months.
- Retirement within one year: If you’re above 54 years old, you can withdraw 90% of the corpus one year before retirement.
- Specific reasons: Under specific situations like terminal illness, marriage, house construction, etc., you can partially withdraw funds.
Steps to Closing Your PF Account
To close PF account, log in to the EPFO portal using your UAN and password, then navigate to the ‘Online Services’ section to initiate the withdrawal process. Complete the online form with the necessary details, submit the request, and follow any additional verification steps required to finalise the closure of your PF account.
-
Step 1: Check Eligibility
Ensure you meet the eligibility criteria for close PF account. Generally, individuals can withdraw their PF balance only after their employment has ceased for a period of two months or more.
-
Step 2: Composite Claim Form Submission
Obtain the necessary withdrawal form from the Employees’ Provident Fund Organization (EPFO) website or your employer. Fill out the form accurately, including your PF account number, bank account details, reason for withdrawal, and other required information.
-
Step 3: Employer Verification
Submit the completed withdrawal form to your employer for verification. Your employer will verify the provided details and attest the form accordingly.
-
Step 4: Submitting the Form to EPFO
Once verified by the employer, submit the withdrawal form along with any required documents directly to the EPFO office or through an authorized bank.
-
Step 5: Processing Time
The EPFO typically takes around 30 days to process PF withdrawal requests, although the processing time may vary depending on the completeness of the application and other factors.
-
Step 6: Fund Transfer
Once your withdrawal request is processed, the PF balance will be transferred directly to your registered bank account as provided in the withdrawal form.
-
Step 7: Confirmation
After the successful transfer of funds, you will receive a confirmation message or email from EPFO, indicating the close PF account.
Terms and Conditions for Withdrawal
- UAN and Aadhaar linking: Your UAN and Aadhaar must be linked for online withdrawal.
- Form submission: Specific forms may need to be submitted depending on the reason for withdrawal.
- Eligibility requirements: Each withdrawal reason has specific eligibility criteria (age, service period, etc.) that must be met.
- Processing time: Online claims typically take around three working days; offline claims may take longer.
Conclusion on Close PF Account
All employees and employers must register with the Employees’ Provident Fund Organisation (EPFO). However, there may come a time when you must do EPF surrender. There is no option for close pf account; filing for permanent closure is the only way to stop filing returns without repercussions.
You cannot file for surrender online; you are required to go to the EPFO office where you registered. When you provide all required documents for surrender, responsible offices do due diligence before processing your claim. However, there are instances when the process may be delayed; that is when you must consult someone knowledgeable about this process. You may head to Vakilsearch for a smooth PF surrender.
FAQs on Close PF Account
What are the different types of PF withdrawal claim forms?
There are several types of PF withdrawal claim forms, each used for a specific purpose:
Form 19: Final Settlement of PF - used for complete withdrawal at retirement or leaving the workforce.
Form 10C: Pension Fund Settlement - used for claiming accumulated balance if service period is less than 10 years.
Form 10D: Pension Claims - used for monthly pension after retirement.
Form 20: Claim PF by Nominee - used by nominee in case of member's death.
Form 5IF: Claim EDLI Insurance Benefits - used by nominee to claim Employee Deposit Linked Insurance.
Form 31: Claim Advances from PF Balance - used for partial withdrawal for specific reasons like housing loans, medical emergencies, etc.
Form 14: Financing a Life Insurance Policy - used for withdrawing PF to pay life insurance premiums.
Form 13: EPF Transfer Claim Form - used to transfer your PF account to a new employer.
How much time will it take for processing an EPF withdrawal?
Processing time for EPF withdrawals varies depending on the type of claim and whether it's submitted online or offline:
Online claims: Typically processed within 3-5 working days.
Offline claims: Can take 10-15 working days or longer.
Is it mandatory to provide a PAN card for EPF withdrawal?
PAN card is mandatory for final settlement or pension withdrawal claims if your service period is less than 5 years. It's recommended to link your PAN with your UAN for smooth processing of any future claims.
How can I close my PF account completely?
It's important to understand that permanent closure of EPF accounts is not possible. The account remains active even after leaving a job, and funds are transferred to your new employer's account. You can only withdraw your EPF corpus under specific circumstances mentioned in answer 1.
How can I permanently delete my PF account?
It is not possible to permanently delete a Provident Fund (PF) account. Once an account is opened, it remains active until the account holder reaches retirement age or decides to withdraw the funds. However, if you do not wish to use your PF account, you can choose to leave it inactive.
How can Close Your PF Account and withdraw all money?
To Close PF Account and withdraw all the money, you need to fill out a form called Form 19. This form is available on the official website of the Employees' Provident Fund Organisation (EPFO). Once you have filled out the form, you will need to submit it to your employer for verification. After verification, your employer will forward the form to the EPFO. The EPFO will then process your request and transfer the money to your bank account. The entire process can take up to 30 days.
Can Close PF Account without involving my employer?
Yes, if you wish to close your PF account without involving your employer, you can do so by submitting a request to the EPFO directly.
What is the process for Close PF Account without employer involvement?
The process for closing a PF account without employer involvement is similar to the process for closing a PF account and withdrawing all the money. You will need to fill out Form 19 and Form 10C and provide a cancelled cheque or a bank passbook copy with your name and account number.
How can I close my PF and pension online?
Yes, you can Close PF Account and pension online by logging in to the EPFO member portal. Once you have logged in, you can fill out the necessary forms and submit them online.
What documents do I need to Close Your PF Account?
To close PF account, you will need to fill out Form 19 and provide a cancelled cheque or a bank passbook copy with your name and account number. If you wish to claim pension benefits, you will also need to fill out Form 10C.
Can I withdraw my PF balance before retirement?
You can withdraw your PF balance before retirement if you meet certain conditions. If you have been unemployed for two months or more, you can withdraw the entire balance in your PF account. To withdraw your PF balance, you will need to fill out Form 19 and submit it to the EPFO.
What is the process for transferring PF balance to a new account?
To transfer your PF balance to a new account, you will need to fill out Form 13. This form is available on the official website of the EPFO. You will need to provide your PF account number, your new employer's details, and your personal information. Once you have filled out the form, you will need to submit it to your old employer for verification. After verification, your old employer will forward the form to the EPFO. The EPFO will then transfer the money to your new PF account.
How long does it take to Close Your PF Account?
The time taken to Close PF Account can vary depending on the method you choose. If you submit your request through your employer, it can take up to 30 days for the EPFO to process your request and transfer the money to your bank account. If you submit your request directly to the EPFO, it can take up to 15 days for the EPFO to process your request and transfer the money to your bank account.
Is there any tax on PF withdrawal?
If you withdraw your PF balance before completing five years of continuous service, the amount withdrawn will be taxable. However, if you withdraw your PF balance after completing five years of continuous service, the amount withdrawn will be tax-free.
How can I close my PF account online?
: To close PF account online, log in to the EPFO portal using your UAN and password. Navigate to the 'Online Services' section, select 'Claim (Form-31, 19, 10C & 10D)', and fill out the necessary details. Submit the form, and follow the verification process to complete your request.
How can I remove my PF?
To remove your PF balance, submit a withdrawal request through the EPFO portal or the UMANG app. Fill out the required forms, ensuring all details are accurate. Your employer needs to verify the form before submission. Once verified and processed, the funds will be transferred to your bank account.
Can we delete a PF account permanently?
A PF account cannot be deleted permanently. However, once you withdraw the full balance and the account remains inactive without any contributions, it is considered dormant. The account will no longer accrue interest, but the funds can be claimed whenever needed.
Do I get my full provident fund if I resign?
If you resign, you can withdraw your full provident fund balance after a two-month waiting period, provided you are not employed elsewhere during this time. The withdrawal includes both the employee and employer’s contributions, along with the accrued interest.
