EPF Money After Resignation

After a person resigns, there is a 2-month waiting time before you can choose to take out your PF funds. If you immediately resign and decide not to accept the next position in India, you may withdraw the remaining balance from your EPF account. Understanding the tax criteria ensures you make informed decisions about when and how to withdraw your EPF funds. This guide will serve as a manual for knowing the basics of how to withdraw your EPF savings after your resignation. 

PF Withdrawal

Provident Fund (EPF) plays a crucial role in securing financial stability post-employment. When you resign from your job, accessing your EPF money becomes a concern. Upon resigning from your job, you become eligible to withdraw your EPF money.

Eligibility for PF Withdrawal

Withdrawing your EPF money after your resignation involves meeting eligibility criteria, submitting the necessary forms, and following either the traditional or online withdrawal process. The eligibility criteria for PF withdrawal are mentioned below:

• One month's notice must be given, or you must pay the employer an equal sum.
• Your personal information on the EPFO site has to be changed.
• You need to have worked continuously for your current job for two months.

How to Withdraw PF After Resignation?

The process of withdrawing your EPF after resignation involves the following steps:

1. Form Submission: Obtain Form 19 (for final PF settlement) and Form 10C (for EPS withdrawal) from the EPFO website or your employer. Fill them out with accurate details.
2. Employer Verification: Submit the filled forms to your previous employer. The employer needs to verify and attest your details, including the reason for leaving the job.
3. Submission to EPFO: The employer forwards the forms to the regional EPFO office. The EPFO processes the withdrawal request and disburses the amount to your bank account.
4. Verification and Disbursement: The EPFO verifies the details, and upon approval, the PF amount is transferred to the bank account provided in the withdrawal forms.
5. Check EPF Passbook: Keep track of the withdrawal process by regularly checking your EPF passbook, which records contributions, interest, and withdrawals.

How to Withdraw PF After Resignation Online?

To make the PF withdrawal process more convenient, the EPFO has introduced an online withdrawal system.

1. UAN Activation: Ensure your Universal Account Number (UAN) is activated. You can do this through the UAN portal.
2. Login to UAN Portal: Log in to the UAN Member e-Sewa portal using your UAN and password.
3. Verify KYC Details: Ensure your KYC details, including Aadhaar, PAN, and bank account details, are updated and verified.
4. Select 'Online Services': Navigate to the 'Online Services' tab and select 'Claim (Form-31, 19 & 10C)' from the dropdown menu.
5. Verify Employment Details: Choose the appropriate type of claim – for resignation, select 'PF Withdrawal (Form 19)' or 'Pension Withdrawal (Form 10C).' Verify your employment details.
6. Complete Form: Fill in the necessary details in the online withdrawal form. Ensure accuracy in bank details and other relevant information.
7. Submit Claim: After completing the form, submit the online claim. The claim is then forwarded to your employer for verification.
8. Employer Approval: Your employer will verify the claim online. Once approved, the claim is processed by the EPFO.
9. Amount Transfer: Upon approval, the EPFO transfers the withdrawn amount directly to your bank account.

Is PF Withdrawal Taxable?

The tax implications of PF withdrawal depend on the timing of withdrawal:

• Tax on Early Withdrawal: If you withdraw your PF amount before completing five continuous years of service, the withdrawal becomes taxable. This includes both employer and employee contributions.
• Tax on Employer’s Contribution: Employer's contributions exceeding 12% of the salary are taxable if withdrawn before five years of continuous service.
• Tax on Interest: Interest earned on contributions is taxable if the withdrawal occurs before five years of continuous service.
• Tax on Withdrawal After 5 Years: If you withdraw your PF amount after completing five continuous years of service, the entire withdrawal becomes tax-free.