PF Withdrawal | PF Withdrawal Form
PF Withdrawal from your EPF Balance is a security of your old age after retirement. According to EPF & MP Act, 1952, it is mandatory for all the employees to contribute 12% of the salary into Provident Fund Account and the same share has to be given by employer.
Under PF Withdrawal Rules, if you need to withdraw, you can do so by filling up PF Withdrawal Form 19. Only this form is used to withdraw PF in whatever the case may be; Retirement, Superannuation or leaving the service before the age of 50. Provident Fund Withdrawal Form 19 and other forms can be downloaded here. In case of death of member, his / her nominee can file Provident Fund Withdrawal by filling in PF Withdrawal Form 20.
In death cases, nominee has to submit Form 20 for claiming PF and Form 10-D for pension along with an attested copy of death certificate of member, 3 passport size photographs of spouse and for 2 children below the age of 25. Spouse pension will continue life long or until re-marriage but child pension will stop after the age of 25. They also have to submit a Life Certificate in November either in bank or in concerned PF Office. You can now check online your PF Withdrawal Status.
Salary deductions for PF include Basic Salary plus DA and Retaining Allowance. Basic salary includes all emoluments earned in service, also while on leave. HRA, bonus, commissions, and overtime allowance are not a part of this.
Under Section 80-C of the Income-tax Act, deduction from salary towards PF up to Rs One Lakh per annum is exempted from tax. Even the interest on PF contribution is exempted from income tax. Transfer of Provident Fund also does not have any tax implications. PF Withdrawal in case of retirement, superannuation, permanent disability, mentally ill, incapacity for work is also not taxable.
But in case of PF Withdrawal before the five years of regular service, the employer’s contribution and interest, thereon, would be fully taxable as ‘salary income’ in the hands of the individual. Further, the employee’s contribution would be taxable to the extent of deduction claimed under Section 80C, if any, under the Income-tax Act,1961 and the interest earned on employee’s total contributions would be taxable as ‘income from other sources’ in the hands of the employee. You may want to:
· Check your EPF Balance
· Check your PF Withdrawal Status
Comments and Suggestions / Queries are always welcome!