How to Withdraw Money from EPFO – Step-by-Step Guide

Mukesh is a manager who wants to buy a car for his convenience. He withdrew 4,00,000 money from EPFO (Employees' Provident Fund Organisation).

This table provides knowledge on how it helps Mukesh.

Before making a decision, Mukesh should verify if he can withdraw funds from EPF and check other options if they don’t work for him. Purchasing a vehicle has benefits, but you should also be wise with your money.

When Can You Withdraw EPF Money?

Mukesh earns a salary from working in a company and regularly contributes to his EPF account. He wants to withdraw money but doesn’t know the right time. Here’s a simple breakdown:

Situations When EPF Withdrawal is Allowed

• Job Loss (Unemployment)
  
  
• Mukesh can withdraw the full amount if he loses his job and stays unemployed for 2 months.
• If he gets a new job, he must transfer the EPF instead of withdrawing it.
  
  
• Medical Emergency
  
  
• If Mukesh or his family needs money for a serious illness, he can withdraw up to 6 months’ salary for treatment.
  
  
• Marriage or Education
  
  
• After 7 years of work, Mukesh can withdraw:
• 50% of his EPF for his own marriage or his siblings’ marriage.
• 50% of his EPF for his children’s higher education.
  
  
• Buying/Building a House
  
  
• After 5 years of work, Mukesh can withdraw:
• Up to 90% of his EPF is to buy a house or pay a home loan.
• Up to 50% of his EPF for house construction.
  
  
• Retirement
  
  
• When Mukesh turns 58, he can withdraw the full EPF balance and get a monthly pension.

EPF Withdrawal Rules (Quick Table)

Mukesh’s Example

• After 6 years on the job, Mukesh wants to buy himself a car.
  
  
• EPF members are not permitted to use their funds to buy cars. He can use EPF for a home loan, medical expenses, or any wedding needs.
  
  
• He may withdraw his total contribution when he is unemployed for over 2 months.

Important Note:

• Early withdrawal (before 5 years) is taxable.
• Always check EPF rules before applying.

How Mukesh Withdrew His EPF Money Online (Simple Steps)?

Mukesh took out money from his EPF account to cover the costs of his daughter’s wedding. He easily achieved this.

Step-by-Step Online Withdrawal Process:

Note: Mukesh may withdraw his EPF money since he has worked in the organisation for more than 7 years. Rules for these different kinds of cases are not the same.

How Mukesh Withdrew EPF Money Offline (Simple Steps)

Mukesh does not use the internet; he followed the offline route to get his son’s EPF money. Here's how he did it:

Step-by-Step Offline Withdrawal Process

Note: Mukesh was allowed to withdraw because he had 7 years of working in the EPF. There are particular guidelines for emergencies, like in medicine, as well as for receiving a home loan.

Conclusion

Mukesh took his year’s savings from the EPF account using the simple, traditional withdrawal steps because of his child's school fees. He first got Form 31 from his office HR, completed it with all his personal details, and the reason for his decision to leave. 

He sent additional documents, such as his Aadhaar, PAN card, bank passbook, and his son’s school admission document. 

“As soon as he sent these to HR, his department sent them to the EPFO office. After the amount was approved in three weeks, it was directly credited to Mukesh's bank account.”

This worked because Mukesh had EPF savings for many years. Recognising the regulations and knowing which documents to include makes withdrawing money from your Employees' Provident Fund easier and simpler, be it online or offline.

 Individuals can withdraw their EPF savings like Mukesh if needed by following these steps.

FAQs

Can I withdraw the full EPF money when leaving a job?

You can withdraw the full EPF only if unemployed for 2+ months. If changing jobs, transfer your EPF to the new employer instead. Partial withdrawal is allowed for specific needs after completing the required service years.

How many days does an EPF withdrawal take?

Online claims take 10-15 days if documents are correct. Offline claims through the employer may take 20-25 days. Delays happen if documents are missing or details don't match EPFO records.

Can I withdraw EPF for buying a car?

No, EPF cannot be used for a car purchase. It's only allowed for a home loan, medical emergency, marriage, education, or after retirement. Some people mistakenly think it covers vehicles.

Is EPF withdrawal taxable?

Withdrawal before 5 years of service is taxable. After 5 years, it's tax-free. TDS is deducted if withdrawing without PAN. The amount appears under 'Income from Other Sources' in ITR.

How to check EPF balance?

SMS "EPFOHO UAN LAN" to 7738299899 (replace LAN with your language code). Or log in to the EPFO portal using UAN. Your passbook shows monthly contributions and interest earned.

Can I withdraw EPF if working abroad?

Yes, but only if permanently settling abroad. Submit emigration proof and Form 15G/15H to avoid TDS. Working temporarily abroad doesn't qualify for full withdrawal.

What is the minimum service for marriage withdrawal?

7 years of EPF membership required. Can withdraw up to 50% of your share for self/sibling marriage. Submit a wedding card and relationship proof.

Can I withdraw EPF for home renovation?

No, EPF can't be used for renovations. Only allowed for new home construction or home loan repayment. Submit property papers and the construction agreement as proof.

What if the EPF claim gets rejected?

Check the rejection reason on the EPFO portal. Common issues are incorrect details, missing documents, or the employer not approving. Correct errors and reapply or visit the EPFO office for help.

What documents are needed for EPF withdrawal?

 You need UAN-linked Aadhaar, PAN, bank details, and form (31/19). For specific reasons like medical or education, submit supporting documents like bills or admission proof. 

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