Employees who have unclaimed balances in their Provident Fund (PF) account have the option of either withdrawing or transferring the funds to their current employer. This can be a great way for them to access money they have saved throughout their working years, but it is important to note that withdrawals made before the end of the five-year period are considered taxable income. This can have a significant impact on an employee’s overall financial situation, and it’s important for them to be aware of this before making a decision.
The Employees Provident Fund (EPF) is a government-managed program that is designed to provide financial security for employees in India. However, despite the government’s efforts to simplify the process of accessing PF accounts, the EPF still holds a significant amount of dormant accounts, totaling 27,000 crores. This can cause financial difficulties for many individuals who are unable to access their funds, which can be crucial in meeting their personal expenses. The legal process associated with accessing these funds can also be daunting, leading some individuals to give up, which further exacerbates the problem.
It’s important for employees to be aware of their rights and options when it comes to their PF account. They should be vigilant in monitoring the status of their account and taking necessary steps to ensure that they have access to their funds. Additionally, they should be aware of the tax implications of withdrawing their funds before the end of the five-year period. By being informed and proactive, employees can take control of their financial future and ensure that they have access to the funds they have saved throughout their working years.
Here’s how you can access the funds in your old EPF account!
Accessing old Provident Fund (PF) money can be made easy with the help of the Employees Provident Fund Organisation (EPFO). They have established a helpline and have made it easier for consumers to access their own money. The PF earns interest and is tax-free, and this helpdesk will offer all the information that an employee may need, and also help them keep track of past accounts.
Individuals often lose track of their previous PF accounts, including the PF numbers, employment data, etc. To access this information, employees can simply pick up the phone and call the helpline with all of their inquiries. Another way to access the information is by visiting the EPF website, where you can find all the necessary information and locate your dormant account. All you need to do is fill out some basic information on the first page, which will allow the EPFO to track the employer’s details of the PF account you previously held with them. Once the information is located, you can withdraw the funds that are accessible in your name.
How to claim the lost account?
To claim an old Provident Fund (PF) amount, there are two options available for the candidate: transferring the balance to their current employer or withdrawing the funds. It is important to note that any withdrawals made during a five-year period are considered taxable income, making the option of transferring the money more favorable. However, if the withdrawal is made after 5 years, it will not be subject to taxation.
The government has made the process of claiming old PF amount more accessible to the general public, resulting in an increase in the number of unclaimed or inoperative accounts being examined, claimed and paid out to applicants in the past four years. It is now easier for individuals to access their funds and take control of their financial future.
Steps to withdraw funds from an unclaimed EPF account
To withdraw old Provident Fund (PF) online from an unclaimed EPF account, you will need to ensure that your Universal Account Number (UAN) is activated and linked to your Know Your Customer (KYC) details, such as Aadhaar, PAN, and bank account information. Once you have met this requirement, you can follow these steps to withdraw your EPF online:
- Log in to the UAN Member Portal using your UAN and password.
- From the top menu bar, select “Online Services” and then “Claim (Form-31, 19 & 10C)” from the drop-down menu.
- On the next screen, enter the last four digits of your bank account and click the “Verify” button.
- Click the “Yes” button to sign the certificate of the undertaking and proceed.
- Select the “Proceed for Online Claim” option.
- To withdraw your money electronically, select “PF Advance (Form 31).”
- A new form will appear, in which you will need to select the “Purpose for which advance is requested,” enter the amount required, and provide your employee address.
- Check the box next to the certification and submit your application.
- Depending on the purpose of the withdrawal, you may be required to provide scanned documents.
- Your employer must accept your withdrawal request before the funds are transferred from your EPF account to the bank account specified on the withdrawal form.
Once your withdrawal request is accepted, you will receive an SMS notification on the registered mobile number with the EPFO. The funds will be transferred to the bank account specified in the withdrawal form once the claim is processed. While there is no official time frame set by the EPFO for the disbursement of funds, it is generally credited within 15-20 days.
In conclusion, withdrawing old PF money from an unclaimed EPF account online can be a simple and straightforward process with the right information and guidance. By following the steps outlined in this blog, you can easily access your hard-earned money and put it to good use. Consider diversifying your investments by exploring alternative options such as Assetmonk, a commercial and residential real estate investment platform that offers better returns than traditional investments. With Assetmonk, you can invest in real estate projects, earn steady returns, and build wealth over time.
How to Withdraw PF Money from Unclaimed EPF Account Online FAQs
Log in to the UAN Member site, go to ‘Online Services’ and select ‘Track Claim Status.’ The status will be displayed on the screen.
Yes, if you have 3 years of continuous service and the amount withdrawn cannot exceed 90% of the EPF corpus.
Log in to the EPFO website, go to the Inoperative Helpdesk, and enter your inactive EPF account details and KYC information.
The EPF contribution will continue to accrue interest for 3 years after age 58, but will become taxable.
Go to the UAN Member Portal, select ‘Know Your UAN’ and provide information from your PAN, Aadhaar, and Member ID.