You can withdraw the accumulated balance in your provident fund account, if you are unemployed for two months or more. Did you know that you can also withdraw PF money even when you are in employment?
Here are the purposes for which you can withdraw money from your provident fund (PF) account, which is administered by Employees' Provident Fund Organisation, subject to certain conditions.
1. For purchase or construction of house or flat, you can make a one-time withdrawal from your PF account if you have completed five years of service. You can withdraw equivalent to minimum of 36 months of basic salary and dearness allowance (DA) if any or total of employee's and employer's contribution with interest or the total cost of purchase.
2. Withdrawal for the purpose of purchase of plot is also allowed provided you have completed five years of service. However, the minimum of 24 months of basic salary plus DA if any or total of employee's and employer's contribution plus interest or total cost of purchase can be withdrawn.
3. For addition, repair or improvement of house you can withdraw an amount equivalent to 12 months of basic salary plus DA if any or employee's share plus interest or cost, whichever is lower. For becoming eligible for withdrawal, you need to be employed for five years.
4. For repayment of home loan, you can withdraw money from your PF account after completing 10 years of service. The withdrawal limit is same as purchase or construction of house.
5. Withdrawals from PF account are also allowed if you need the money for your or family member's medical treatment of specified ailments which require hospitalization for one month or more or a major surgical operation. There is no condition related to tenure of employment in case of withdrawal for medical treatment. You can withdraw an amount equivalent to six months of basic wages plus DA if any or employee's share plus interest, whichever is lower.
6. You can also draw money from your PF account for your child's post-matriculation education. Withdrawals are possible after seven years of opening of PF account. The amount of withdrawal will be 50 per cent of the employee's share with interest. Three such withdrawals are allowed in the lifetime. The same rules apply for withdrawal for self, child's or siblings marriage.
Withdrawal process
If you want to withdraw money for any of the above mentioned purposes, you will need to fill Form 31 along with the required declaration, like in case of home loan you need to attach a proof of outstanding loan amount from the bank to the regional EPFO office.
Here are the purposes for which you can withdraw money from your provident fund (PF) account, which is administered by Employees' Provident Fund Organisation, subject to certain conditions.
1. For purchase or construction of house or flat, you can make a one-time withdrawal from your PF account if you have completed five years of service. You can withdraw equivalent to minimum of 36 months of basic salary and dearness allowance (DA) if any or total of employee's and employer's contribution with interest or the total cost of purchase.
2. Withdrawal for the purpose of purchase of plot is also allowed provided you have completed five years of service. However, the minimum of 24 months of basic salary plus DA if any or total of employee's and employer's contribution plus interest or total cost of purchase can be withdrawn.
3. For addition, repair or improvement of house you can withdraw an amount equivalent to 12 months of basic salary plus DA if any or employee's share plus interest or cost, whichever is lower. For becoming eligible for withdrawal, you need to be employed for five years.
4. For repayment of home loan, you can withdraw money from your PF account after completing 10 years of service. The withdrawal limit is same as purchase or construction of house.
5. Withdrawals from PF account are also allowed if you need the money for your or family member's medical treatment of specified ailments which require hospitalization for one month or more or a major surgical operation. There is no condition related to tenure of employment in case of withdrawal for medical treatment. You can withdraw an amount equivalent to six months of basic wages plus DA if any or employee's share plus interest, whichever is lower.
6. You can also draw money from your PF account for your child's post-matriculation education. Withdrawals are possible after seven years of opening of PF account. The amount of withdrawal will be 50 per cent of the employee's share with interest. Three such withdrawals are allowed in the lifetime. The same rules apply for withdrawal for self, child's or siblings marriage.
Withdrawal process
If you want to withdraw money for any of the above mentioned purposes, you will need to fill Form 31 along with the required declaration, like in case of home loan you need to attach a proof of outstanding loan amount from the bank to the regional EPFO office.
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