WITHDRAWAL OF PROVIDENT FUND
Employee Provident Funds Scheme, 1952
Chapter VIII of the Employees’ Provident Funds Scheme, 1952 provides the purposes for which Provident Fund (PF) can be withdrawn by the member employee, such as:
| Para 68 B/BB/BC | Housing Loan/ Purchase of site/House/Flat or for construction/ Addition, alteration in existing house/Repayment of Housing loan |
| Para 68 H | Lockout or closure of factory |
| Para 68 J | Illness of member employee or family |
| Para 68 K | Marriage of member employee or his/her son/daughter/brother/sister |
| Para 68 K | Post Matriculation education of children |
| Para 68 M | Cut in electricity in establishment |
| Para 68 N | Purchasing equipment by physically handicapped |
| Para 68 NN | One year before retirement |
| Para 68 NNN | Investment in Varistha Pension BimaYojana |
| Para 68 HH | Unemployment Advance
Employees’ Provident Funds (Amendment) Scheme, 2018 Please note that this provision is in addition to the Para 69(2) which provides for full settlement of the provident fund. This had been specifically clarified by Employees’ Provident Fund Organisation vide Manual/Para 68HH/ dated December 19, 2018 provided along with the Employees’ Provident Funds (Amendment) Scheme, 2018. Para 69 HH provides that for a non-refundable withdrawal to an individual who is terminated from employment, allowing him to make a withdrawal of 75% of his accumulated corpus after 1 month from when he was terminated. Further, Para 69HH read with Para 69(2) (explained in detail below) provides that if the individual remains unemployed for a tenure of 2 months or more or is working in an establishment where the scheme is not applicable, he is allowed to withdraw the remaining 25% and settle the PF amount completely. |
| Para 68 L | Natural Calamity/Abnormal Conditions
Employees’ Provident Funds (Amendment) Scheme, 2020 Vide Notification GSR.225(E) dated 27.03.2020, a provision has been made for withdrawal of a non-refundable advance on account of COVID-19 from the provident fund account of the member not exceeding the basic wages and dearness allowances of that member for three months or up to seventy-five per cent. of the amount standing to his credit in the fund, whichever is less. |
| Para 69 (2) | The provision for full withdrawal of the funds in the provident fund account is provided in this para.
It states that a member is permitted to withdraw the full amount standing to his credit in the fund on ceasing to be an employee in any establishment to which the Act applies provided that he has not been employed in any factory or other establishment to which the Act applies for a continuous period of not less than two months immediately preceding the date on which he makes an application for withdrawal. |
| Para 76(b) | Punishment is provided under this para which provides that if any person:
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| Form | Purpose and Details of the Form |
| Form 19 | This form is for the final settlement of the provident fund account as specified in Para 69 of the Scheme.
Towards the end of the form, the member has to declare that he has not been employed for two months. |
| Composite Claim Form | EPFO has introduced a consolidated form for Form 19 (final settlement of provident fund) Form 10C (withdrawal of pension) and Form 31 (for availing non-refundable withdrawal of provident fund).
The form further states that in case the amount is used for any purpose other than stated in the form, the member will be liable to return the entire amount with penal interest. The form also has an instruction manual wherein in Point 7(iii) it is mentioned that to avail the unemployment advance, no documentation needs to be provided by the member. |
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While on EPF, kindly share your thoughts & options on Taxability of EPF interest accrued post retirement – in today’s scenario !