Employee Provident Fund EPF is one of the popular savings schemes introduced under the supervision of the government of India. Also, it is the main scheme under the Employee Provident Funds and Miscellaneous Act, 1952. Furthermore, this savings scheme is managed by the Employee Provident Fund Organization (EPFO). In this article, we will understand the partial withdrawal from the Employee Provident Fund ( EPF withdrawal form 31). And it is also a guide on EPF filing procedure and how to download the form.
This scheme aims to build a sufficient retirement corpus for an individual. The fund is created with monetary contributions from both employer and employee. Also, each of them has to contribute 12% of the employee’s basic salary (Basic + Dearness allowance) towards this fund every month. Once an individual retires, they receive the total contribution (of both employee and employer as a lump sum with interest. Moreover, the government of India has mandated contribution in this scheme.
Form 31 of Employees Provident Fund is also known as the PF Advance Form. Also, this form serves as an application for partial withdrawal of funds from the EPF account. The money from this account cannot be withdrawn as and when required. Furthermore, there is a certain criterion for the withdrawal from the EPF account. In other words, an individual can withdraw the amount in special situations only.
The following are the circumstances and conditions where an individual can withdraw money partially from their PF account. Unless the individual satisfies the below withdrawal rules, it is against the provident fund regulations to withdraw the entire money.
|Withdrawal Purpose||Limits on Withdrawal||Service required||Other conditions|
|Education||Individuals can withdraw up to 50% of employee contribution to EPF with interest||7 years||Individuals can withdraw this money for their further studies. Or the education of their children post 10th standard.|
|Marriage||Individuals can withdraw up to 50% of employee contribution to EPF with interest.||7 years||Individuals can withdraw this money for the marriage of self or dependents.|
|Purchase of Land/ Purchase or construction of a new house||For land purchase –Individuals can withdraw an amount of up to 24 times their monthly wages and DA. Also, For House –Individuals can withdraw an amount of up to 36 times of their monthly wages and DA.||5 years||Individuals should purchase the land or house in their name, or their spouse name or jointly.|
|Renovation of House||Individuals can withdraw an amount of up to 12 times of their monthly wages and DA.||5 years||The house to be renovated should be in their name, or their spouse name or jointly. This facility is available twice – After 5 & 10 years of completion of the house.|
|Repayment of Home Loan||Individuals can withdraw an amount of up to 36 times of their monthly wages and DA.||10 years||1) The house purchased should be in their name, or their spouse name or jointly. 2) Also, the loan must be taken from an authorized agency, bank or institution.3) the official agency, bank or institution must be able to provide a certificate indicating the outstanding principal and interest|
|Before Retirement||Individuals can withdraw an amount up to 90% of their accumulated corpus in their EPF account with interest.||Once an individual reaches an age of 54 years and within one year of retirement/superannuation, whichever is later.||To help them for their financial expenses|
The following documents are required along with Form 31 for EPF withdrawal –
|Documents for EPF Withdrawal|
|Purpose of EPF Withdrawal||Documents Required|
|Purchase of a house/land||Declaration FormRegistration certificate of the house property/land|
|Repayment of home loan||Certificate of outstanding principal and interest from the lending agency, bank or institution|
|Medical Illness||Certificate from the employer and the doctor|
|Marriage||The declaration is within form 31|
|Education||Certificate from the concerned education institution|
|Grant of advances in special cases||Corticated from the employer|
|Physically handicapped||Certificate from the concerned doctor|
|Withdrawal before retirement||Declaration from the member|
An employee, an employer, and the EPF commissioner must fill the form 31 of EPF. Also, it is mandatory to provide latest and factual information in the form. The following are the contents to fill in the form by each of them.
The following are the requisite details to be filled by the employee in a EPF withdrawal form 31 –
The following are the requisite details to be filled by the employer in a EPF withdrawal form 31–
The following are the requisite details to be filled by the EPF Commissioner in a EPF withdrawal form 31 –
One can submit Form 31 for withdrawal, either offline or online.
The following are the steps to submit the EPF Form 31 offline –
The following is the filing procedure to submit the EPF Form 31 online –
Furthermore, upon submitting the EPF withdrawal form one has to wait for their employer to approve the request. Subsequently, individuals can find the amount credited to their bank account. Additionally, individuals can check their EPF balance online after logging in.
An individual should keep in mind the following things while submitting the Form 31
The following are the steps for checking the EPF claim status online –
Following are the other tax saving investment options
To check their tax liability while filing income tax returns, one can use an income tax calculator.
Scripbox Income Tax Calculator helps in checking if there is any additional scope to save more tax. This also helps investors get maximum tax benefits on their investments. Also, Scripbox’s Income Tax Calculator, helps investors to derive full benefits by suggesting tax-saving investments. They can claim the same while filing income tax returns.
Form 31 for EPF withdrawal is available on the EPFO website. One can also download the EPF form by clicking here.
In March 2020, the government has announced that individuals can withdraw a certain amount from their EPF. The amount can be withdrawn if they face a shortage of money due to coronavirus. Furthermore, according to the amendment, individuals can withdraw an amount equal to three months of their basic and DA. Or 75 percent of their PF balance, whichever is lower.
Until the coronavirus vaccine comes out, the government has given some relief to individuals.
Taxation on mutual funds is a complex topic. Taxes paid on your mutual fund investments vastly depend on factors such as what kind of funds you have invested in, the duration of your investment, which income tax slab you belong to and so on.