The Employees' Provident Fund Organisation (EPFO) has revised its withdrawal restrictions, letting PF account holders withdraw funds as a non-refundable advance from their EPF account. The measure is intended to assist EPFO members who have been impacted by the Covid-19 epidemic. An EPFO member can now employ the EPFO's PF/EPF withdrawal service, mentioning Covid-19 as the cause of withdrawal. EPFO members can now withdraw up to three months' basic salary + Dearness Allowance (DA) or 75% of their gross PF balance, whichever is lower, under the new regulation. Members who have previously taken use of the first COVID-19 advance can now also make use of the second advance as well.
The provisions and procedures for withdrawing the second COVID-19 advance are identical to those for withdrawing the first advance. The organisation further stated that if these claims are submitted online, they will be processed within three days, whereas offline PF withdrawal claims will require approximately 20 days to settle. EPFO has implemented a system-driven auto-claim settlement process for all such individuals who have completed their KYC standards in all aspects. EPFO is now able to minimise the claim settlement process to only three days thanks to the auto-mode of settlement.
Steps to make PF withdrawal online
A valid UAN linked to Aadhaar, PAN, UAN-registered mobile number and bank account are required to make an online PF withdrawal claim. To complete the claim procedure, the user must log in to the EPFO's member portal - unifiedportal-mem.epfindia.gov.in and follow the procedures indicated below.
- Visit https://unifiedportal-emp.epfindia.gov.in/epfo/ and sign in to your EPFO account using UAN and password.
- Now select 'Claim (Form-31, 19 and 10C) under the 'Online Services' tab.
- The details of your EPF account will display on your device screen. Click the verify button after entering the last four digits of your bank account number.
- Now accept the 'Terms & Conditions' and click on 'Proceed Claim Online'.
- Now select the "PF Advance (Form 31)' option and enter the reason for the claim. Or else you can select the new option 'outbreak of pandemic (Covid-19).
- Now enter the amount that you want to withdraw and specify your complete address.
- Now enter your bank account details, upload a scanned copy of cheque.
- Now click on the 'Send OTP' option, and you will get an OTP on your UAN-registered mobile number.
- Verify the received OTP and your PF claim will be registered online.
- The EPFO subscriber should be aware that your online PF withdrawal claim requires employer confirmation. After the employer's confirmation, the withdrawal amount will be deposited into the specified bank account.
What to do if there is any mismatch in EPF account?
The subscriber must confirm that the UAN is active, validated Aadhaar is linked to the UAN, and the UAN is linked with a bank account having an IFSC code. If an employee's Covid claim application is refused owing to a discrepancy in specifics, he can correct the details by signing in to the member e-sewa portal and resubmitting the claim. In case the subscriber has two UAN he or she must get the PF account transferred as soon as possible to the current employee before making a withdrawal request. Once the transfer is complete, the entire PF corpus will be registered against the most recent UAN, and he or she will be able to make a COVID-19 advance claim.
The bank normally credits the advance to the member's account within one to three business days. So, before filing an online claim, double-check that the scanned documents are accurate and that the necessary documents are submitted. Check to see if the UAN-linked bank account is active. If you have a complaint about EPFO's services, EPFiGMS is a specialised EPFO platform dedicated to resolving complaints about EPFO's services. You can use this system to make a complaint, send a reminder, track the progress of your complaint or grievance, and much more.
How EPF withdrawal is taxed?
If the amount withdrawn is more than Rs 50,000 before the completion of 5 years of service, TDS is deducted at a rate of 10% from the EPF balance. While making a withdrawal, don't forget to include your PAN. TDS will be deducted at 30% if PAN is not submitted. If Form 15G/Form 15H is submitted, no TDS is deducted. If the subscriber is in the taxable bracket, however, he must declare the EPF withdrawal on his or her tax return. However, no TDS is deducted if the amount withdrawn is less than Rs 50,000 before the completion of 5 years of continuous service.