The authorities launched final week that it’s doubtless you’ll perhaps presumably withdraw a determined quantity out of your Staff’ Provident Fund (EPF) corpus, in case you are facing financial considerations as a consequence of the coronavirus-connected lockdown.
The authorities has notified the amendment in ideas concerning withdrawal of funds from EPF accounts for COVID-19-connected financial exigencies. As per the amended ideas, an EPF member can withdraw an quantity equal to three months of classic and dearness allowance (DA) or 75 per cent of the credit ranking steadiness in the legend, whichever is lower.
Read on to the correct technique to withdraw out of your EPF corpus and how grand you are allowed to withdraw.
The EPF withdrawal math
Allow us to tell your final drawn classic wage plus dearness allowance (DA), if bought any per month is Rs 30,000 and the EPF steadiness on your legend is Rs 3 lakh. Then the amount of cash you are eligible to withdraw may perhaps be lower of:
a) Three months of classic + DA, i.e., Rs 90,000 (Rs 30,000 X 3); or
b) 75 per cent of the EPF steadiness , i.e., Rs 2,25,000 (75 per cent of Rs 3 lakh)
So, in this case, you are eligible to withdraw Rs 90,000 out of your EPF legend. The quantity withdrawn by you as a consequence of the outbreak of the pandemic is ‘non-refundable’. This potential that reality, you aren’t required to refund or stock up the withdrawn quantity assist into your EPF legend.
Puneet Gupta, Director, Of us Advisory Providers and products, EY India says, “The notification amending the Provident Fund Blueprint enables such reach for any epidemic or pandemic narrate declared by acceptable Authorities and now not supreme COVID-19. This may perhaps perhaps presumably enable workers to gain entry to provident fund in case of such a notified eventuality in a particular verbalize or predicament in future.”
Eligibility to exercise for withdrawal
To apply for claim online, an EPF legend holder may perhaps presumably aloof satisfy three instances:
a) Trendy Story Quantity (UAN) of the EPF member may perhaps presumably aloof be activated
b) Aadhaar wants to be verified and linked with UAN
c) Checking legend of the EPF member with IFSC Code wants to be seeded with UAN.
As per the FAQs issued by the Staff’ Provident Fund Organisation (EPFO), no certificate or paperwork are to be submitted by the member or his/her employer for availing the income. Nonetheless, an particular person must assist the scanned reproduction of cheque ready as this would perhaps presumably even be required to be uploaded while applying for withdrawal from EPF legend online.
The correct technique to exercise for withdrawal
Step 1: Search recommendation from the Member e-Sewa portal: https://unifiedportal-mem.epfindia.gov.in/memberinterface/
Step 2: Login to your legend by entering your UAN, password and captcha code.
Step 3: Trek to On-line services and products and take claim (Make -31, 19,10C and 10D)
Step 4: A new webpage will appear to your show veil veil alongside with your entire vital parts equivalent to name, date of birth, and final four digits of your Aadhaar number. The webpage will moreover point to your bank legend vital parts. Enter the final four digits of your bank legend and click on on take a look at. A pop-up will appear to your show veil veil asking you to present a ‘Certificates of endeavor’.
Step 5: Once the final four digits of your bank legend are verified, then click on ‘Proceed for online claim’.
Step 6: From the topple down menu, you may perhaps be able to be required to take ‘PF reach (Make 31)’.
Step 7: It is doubtless you’ll perhaps presumably be required to take cause of withdrawal as ‘Outbreak of pandemic (COVID-19)’ from the topple down menu.
Step 8: Enter the amount required and add the scanned reproduction of cheque and enter your handle.
Step 9: A one-time password (OTP) may perhaps be despatched to your cellular number registered with Aadhaar.
Step 10: Enter the OTP bought by you by process of SMS.
Once the OTP is efficiently submitted, the claim inquire of will moreover be submitted. The cash may perhaps be credited to your bank legend only if the vital parts match and your claim is permitted by the EPFO.
Withdrawing by process of EPFO’s Umang app
Step 1: Login to Umang App
Step 2: Capture EPFO
Step 3: Capture ‘Employee Centric Providers and products’
Step 4: Capture the option ‘Elevate Claim’
Step 5: Enter your UAN vital parts and click on on ‘Acquire OTP’ to gain one-time password to login on your legend.
Step 6: Enter the OTP and click on on login. Whilst you are efficiently logged in to your legend, enter final four digits of your bank legend and take the member ID from the topple down menu. Click on on ‘Proceed for claim’.
Step 7: It is doubtless you’ll perhaps presumably be required to enter your handle. Click on on ‘Next’ as soon as the correct vital parts are entered.
Step 8: Add the cheque image. Once all of the vital parts and required files is entered, then your claim may perhaps be filed.
The correct technique to examine the verbalize of the claim
To verify the verbalize of the claim filed, it’s doubtless you’ll perhaps presumably log in to your legend on the Member e-Sewa portal. That it’s doubtless you’ll take a look at the verbalize by clicking on ‘Track Claim verbalize’ underneath the ‘online services and products’ tab.
Things to construct in thoughts
While applying for withdrawal, take a look at whether or now not your organisation is exempted. If your organisation is exempted, then you positively’ll desire to contact your employer for the withdrawal. Exempted organisations are these having non-public trusts to location up the EPF of workers.
Also, optimistic you now private the system to withdrawn out of your EPF corpus. Nonetheless, for the reason that cash contributed by you to your EPF legend is a form of forced saving, withdrawing out of your EPF corpus wants to be your final resort. So, mediate about and utilize all varied alternatives sooner than withdrawing out of your EPF legend. Right here is moreover because for the time being, hobby on EPF contributions is exempt from tax as a lot as determined limits and as a consequence financial planners mediate about it to be amongst the simpler debt investment alternatives at demonstrate.
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