Provident Fund

How To Withdraw PF Amount Using The UMANG App

If you have a PF account and want to know the process of Withdrawing a PF Amount using the UMANG App, this article is for you. Read on to know more.

Provident Fund is a retirement fund that is managed by the Government of India. It was introduced to provide financial security for retired employees and their dependents. If you want to withdraw the amount from your provident fund you need to follow certain procedures. You can use the Umang app to withdraw the money. In this article, we will tell you all about withdrawing PF amount using the UMANG app.

What is Provident Fund?

Provident Fund in India is a compulsory saving scheme for all employees. It is the Employees Provident Fund (EPF) established by the Government of India under Section 80G of the Income Tax Act 1961 (ITA). 

This fund is used to provide financial security and stability to the employee during his/her retirement. The amount of this fund can be deposited by the employer or by any other person on behalf of an employee. It is mandatory for every salaried person to contribute 10% of his/her salary to this fund.

The amount that will be deposited into your account after retirement depends on how much you have contributed during your working life. The contribution made by employers will also be deducted from your salary before being deposited in this fund.

Documents Required for PF registration

Provident Fund is an employee’s savings plan which provides them with a regular income in the form of interest or dividends after retirement. Provident funds are also known as PF, EPF, and EPS. The government has set up provident funds at both the central and state level to provide benefits to retired people and their dependents.

The documents required for PF registration are as follows.

  • Name of the applicant along with the PAN card. 
  • The proprietor needs to include identity proof such as a driving license or passport. 
  • The address of the proprietor and the premises. 
  • The details about the applicant include their residence and telephone number. 
  • In the case of companies or firms, a certificate of registration is also required. 
  • Identity proof of the partners of the company is also required. 
  • Another necessary document is the GST registration certificate. 
  • Information about the employees along with their salaries is required. 
  • A Canceled cheque is also mandatory for applying.

All the employees working in India are eligible for a provident fund. The employer is supposed to register their employees for PF. A salaried employee who has a monthly salary of less than rupees ₹15000 has to mandatorily register for provident fund.

How to Withdraw PF Amount?

The employees are allowed to withdraw the entire amount from the provident fund after retirement. However, they are also allowed to withdraw partial amounts when needed. If you want to withdraw the amount from your provident fund you can do it online using the UMANG app. For using the UMANG app you have to create an account on it. 

Here are the steps for making a profile on the Umang app and Withdrawing PF Amount using UMANG App.

  • Use Google Play Store or Apple app store to download the Umang app. 
  • After opening the app, select ‘new user’ and enter your mobile number on the registration screen and then proceed. 
  • You have to verify your phone number using the OTP procedure and then click confirm MPIN. 
  • Then you have to click on the proceed option and enter your Aadhaar number if you want to link it. You can also skip this step. 
  • After that, you have to enter the profile information that is required and then proceed. 
  • This completes the registration process and after completing the registration process you have to follow the process of Withdrawing PF Amount using UMANG App.
  • Once you have created a profile on the app you have to select the option of all services from the drop-down menu. 
  • Look for the option EPFO and select the options ‘raise claim’. 
  • After that, you have to provide your EPF UAN number and OTP will be generated. 
  • The OTP sent to your mobile number has to be entered and then you have to fill in the required details such as the type of withdrawal. 
  • After that, you have to submit the request and you will receive an acknowledgment Slip.
  • After that, you can track the status of your request.

Learn about PF Interest Calculator.

Benefits of Provident Fund 

Provident Fund is the retirement fund of a company. It can be used for any purpose like paying off debts, buying a house, or even starting your own business. The main purpose of a Provident Fund is that it provides you with some money when you retire from your job and thus helps in protecting your financial security at the time of retirement.

Some important benefits of a PF are

  • Having a provident fund makes an employee eligible for the EPF retirement scheme. 
  • The amount you withdraw from your provident fund and the amount you contribute is exempted from the tax. 
  •  PF also allows partial withdrawal of the amount from the fund if needed. If an employee is nearing retirement they can withdraw up to 90% of the amount available in their provident fund. 
  • The employee and the employer contribute towards the EPF fund. 
  • An employee can also withdraw the funds partially from the PF account if they have been unemployed for more than two months. 
  • The interest rate that employees receive on their provident fund is around 8%. And employees are also allowed to take loans against the provident fund. The interest they have to give on the loan they take is only one percent.

Conclusion 

In India, the government has been providing many benefits to its citizens. One of them is the Provident Fund which is a part of the Employees’ State Insurance Scheme (ESIS). This scheme provides financial assistance to employees and their families in case of death or disability. This fund can be withdrawn using the UMANG app. In this article, we mentioned the method of Withdrawing PF Amount using UMANG App.

Every employer with more than 20 employees has two registers for provident funds. If you are an employer who wants to register for PF you can take help from Vakilsearch. Their expert legal professionals will conveniently collect all the required information and you have to submit the required documents. They will also register for you and give you all the credentials. If you have any confusion during the process you can contact the team they will assist you through it.

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