EPF refunds


#1

I have quit my job and don’t plan to work with any other company as I am starting out my business. How can I get my EPF funds?


#2

You can withdraw your EPF funds by using Form 19 or Form 19 (UAN). The form can be accessed by getting in touch with the HR department of your previous employer. Note that in order to be eligible for EPF withdrawals you must apply after a 2 month cooling off period post your resignation provided you are not working with any other company or organization.


#3

Hi Aswani,

If salaried individuals wish to withdraw their EPF account balance, they have to submit Form 19 to their ex-employers, who in turn have to sign and attest it. To complete the withdrawal procedure, members have to submit various other documents, namely, resignation letter and a cancelled cheque in addition to form 19 to the EPFO.

It is important to note that withdrawal of the EPF account by a salaried employee between jobs is illegal. As per PF withdrawal rules, a salaried employee can withdraw a provident fund account balance on two counts; first, if he or she has no job and second, if two months have elapsed since his or her last employment (not attached to any organization or unemployed for 2 months).

If a salaried employee opts for withdrawal after continuous service of five years or above, there will be no TDS deduction on the amount. It is important to note that if withdrawal is made before the completion of five years of continuous service, the amount withdrawn will be taxable. According to new EPF rules announced by the finance minister in the budget for financial year 2015-16, EPF withdrawal will attract TDS deduction at the rate of 10% (in cases where PAN is registered) or up to a maximum of 30%.

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Cheers,
BB Expert