The Provident Fund is a compulsory retirement plan for employees designed to help them to save some amount for retirement. Each month, the employees and their employers contribute to the provident fund. Both parties contribute 12% of the employees’ salaries to the PF scheme.
Provident Fund Organization sets up a pre-fixed interest rate on the account, which is the amount accruing to the fund due to its creation. Interest accrued on the Provident Fund investment is tax-free and can be withdrawn without paying any tax for the amount accrued. Employees will receive a lump-sum payment, including accrued interest, when they retire.
Here are the easy ways to withdraw PF amount online in 5 simple steps
If you wish to withdraw your Provident Fund online, you can visit the PFO e-SEWA portal and use your UAN. First, however, you will need to follow the following steps to complete the process:
Access the portal by logging in
You must log in using your UAN and password and enter the captcha code to access the PFO e-SEWA portal. You could reset your password by receiving an OTP sent to a registered mobile number if you forgot your password.
Visit the online claims section for more information
After you have logged in, it is possible to find ‘Claim (Forms-31, 19, 10C & 10D)’ under the ‘Online Services section.
Enter the details of your bank account
As a verification process, shortly after opening this section, you will be asked to enter the correct bank account number.
Confirm terms and conditions
You will need to confirm the Terms and Conditions stated by PFO once you have verified your details. It is then possible for you to click on ‘Proceed for Online Claim.’
Choose a withdrawal reason
The dropdown menu will appear, from which you can select the reason for withdrawing funds from your PF account.
Some other steps to withdraw an amount from the PF account
Use the Advance Claim option
If you select the ‘Advance Claim’ option, you must upload your check/passbook details. Please review the ‘Terms and Conditions before requesting a one-time password (OTP).
Get your Aadhaar OTP
You will receive an OTP once you confirm your details and accept the terms and conditions. Once you have entered the OTP, you can submit your claim application to the company.
By logging into your Member e-SEWA portal account and looking at the Track Claim Status section, you can track the status of your claim. There will be a match between your online claim form and your PFO records. The amount will be credited to the bank account linked to your UAN once they have completed the verification process.
Benefits of Provident Fund
Increase in capital value
With the online Provident fund investment scheme, you will receive a pre-fix interest rate on your deposit. However, it is also essential that rewards are extended at maturity to guarantee the growth of the employees’ funds and accelerate the appreciation of the capital.
Corpus during an emergency
There are always going to be uncertainties in life. To face such unwarranted situations, one of the best things an individual can do is to prepare themselves financially to face such unforeseen circumstances. When an individual needs to cover expenses because of an emergency, the Provident fund serves as an emergency corpus.
The income from Provident fund schemes is also exempt from taxation due to being invested. A Provident Fund scheme offers higher earnings to its members due to its tax benefits. A long-term benefit of this is that it further increases savings and a person’s purchasing power.
Premature withdrawals are easy
You are entitled to take advantage of partial withdrawal benefits if you are a member of PF India. You can withdraw funds from your PF to meet specific needs such as pursuing higher education, building a house, paying wedding expenses, or medical treatment.
Repayment of a home loan
The guidelines established by EPFO stipulate that an individual can withdraw up to 90 percent of his or her provident fund balance to purchase a new property or construct a new home. Consequently, it is possible to use a PF account to pay off a home loan and then to use the remainder of the account to purchase a property.
Employees’ Provident Fund, also known as EPF, is a government scheme established under the direction of the Ministry of Labor and Employment. In addition to encouraging employees to save, this scheme is intended to help them accumulate appropriate retirement assets.