Provident Fund is the most significant financial tool that helps secure an employee's future by inculcating a disciplined savings habit. The EPFO i.e Employees' Provident Fund Organization of India operates this scheme as a long-term savings scheme with attractive interest rates on contributions both from the employer and the employee. The savings into this fund also are an essential safety cushion against emergency situations in cases of your retirement, a loss of employment, or such similar emergencies. It also specifies the conditions, whereby one must finally close the PF account-say due to retirement, a change of address or occupation, or some such valid reason. A knowledge about permanently closing your PF account proves immensely useful and gets hassle-free entry into hard-earned savings. This guide will help you navigate the process of permanently closing your PF account and ensure compliance with EPFO guidelines.
What is a Provident Fund and a PF Account?
Provident Fund, or PF, is actually a savings scheme under which part of an employee's salary is contributed with both the salary contribution of an employee and that of his employer. And the savings obtained over the years can be withdrawn partially or wholly in certain conditions. Such contributions are deposited into an individual account called a PF account. This is the savings repository for the employees, and it is uniquely identifiable by the PF number given to every account holder.
Is it Possible to Close the PF Account?
Close Your PF Account before retirement is available on certain conditions. The process can be done either online or offline, according to your choice. It becomes easier to withdraw with a Universal Account Number, and one must be well-informed about the withdrawal forms according to one's requirement. The duration of the withdrawal process depends upon the chosen method and several other conditions. This also includes:
- If the employee dies, the amount will be fully paid to the nominee nominated at the time of activation of the account.
- When an employee is no longer employed by the company or is now retired and has fully withdrawn their amount.
What Is Surrendering PF?
You learned earlier that PF registration cannot be cancelled. However, it can be surrendered. In case you request for this provision, you permanently lose your membership. No contractor would ever like to experience this situation; however, sometimes it cannot be avoided. The following are the steps that must be followed in surrendering PF registration:
- PF registration surrender should not be this painful. But then again, if you don't know how to do it, then maybe it will be a bit of a pain.
- Prepare all your documents and records that have something to do with ESIC and PF registration.
- You do not want to begin looking around for some document once the checking officials begin sifting through your papers.
How To Withdraw PF Amount From EPF Account?
You can withdraw PF amount from EPF account as following:
Online PF Amount Withdrawal Method
- Visit the official website of the EPFO i.e Employees Provident Fund Organisation.
- Log in with your Universal Account Number (UAN), password, and captcha code.
- Under the 'Online services' option click on 'Claim (Form-31, 19, 10D & 10C).'
- After entering all details, click on 'Verify.'
- In order to sign the 'Certificate of Undertaking” select the option of yes.
- You will have to choose 'only PF withdrawal (Form 19)' from the drop down menu.
- Fill up all your address and accept the disclaimer and click for 'get Aadhaar OTP.'
- You will get OTP on your mobile number
- Write the OTP. Submit your form.
- After successful submission reference number will be displayed.
- In a period of 15 - 20 days, the money gets transferred to your bank account linked with UAN.
Offline PF Amount Withdrawal Method
- Download Composite Claim form (Aadhaar and non-Aadhaar) from the official website of EPFO.
- Fill in and submit Composite Claim form (Aadhaar) directly to the jurisdictional EPFO office with no attestation by your employer.
- Fill up and submit composite claim form (Non-Aadhaar) directly to the jurisdictional EPFO office after the attestation of the employer.
- Also, note that the procedure in the offline mode may take time as compared to the online one.
Documents Required for EPF Amount Withdrawal
No document is required while online EPF claiming. At the time of registration on the EPFO portal, one has to scan the passbook or checkbook also to upload it there as well. All these three things, name, bank account number, IFSC code must be visible there.
Terms and Conditions for Online EPF Account Closure
Some of the key conditions for online EPF account closure are given below:
- First is when you have a continuous 10 years of work record in the organization and you fall between 50 to 58 years of age, then you can make an easy withdrawal. Remember that you will have to fill form10 and composite claim form.
- You are not permitted to take away the amount committed for your EPS if you have worked above 10 years but below 58 years of age. Pensions will be provided only after retirement.
- If you have not served a company for ten years, you are eligible to receive the full amount of both the PF and EPS. You should choose "Final PF Balance" and fill up the "Composite Claim Form".
- If you are 58 years or above, you can apply for Form 10D and withdraw your complete EPF balance along with your EPS.
Conclusion
Closing a Provident Fund (PF) account is a crucial financial decision that requires careful attention. The PF is a lifesaver during critical times like retirement, emergencies, or significant life stages. To avail the fund without delays, follow the proper procedures set by EPFO. Ensure all necessary documents, such as UAN, bank details, and KYC, are updated and verified. Understand the tax implications as well as follow the rules to avoid financial setbacks. Treat your PF account as a valuable asset reflecting disciplined savings and contributions, and ensure its closure aligns with your financial needs and long-term goals. By following the procedures described in this guide, you can access your savings efficiently, empowering you to plan for a secure financial future.
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