Employee Provident Fund (EPF), Public Provident Fund (PPF) and National Pension System (NPS) are investment schemes backed by the government of India. While EPF is compulsory for the employees but PPF and NPS can be opted by anyone with their will. The mentioned three schemes have some specific requirements and procedures for their respective withdrawals. Here in this article, we have discussed the requirements and procedures related to money withdrawal from EPF, PPF and NPS accounts.
Key Points – Withdrawal from EPF
- EPF can either be withdrawn partially or completely.
- Partial withdrawal is allowed under certain events like medical reasons, loan prepayment, etc.
- However, complete withdrawal is allowed when the subscriber retires or remains unemployed for more than 2 months.
Procedure – Online withdrawal from EPF
- Log in to the UAN portal using your UAN and password.
- Click on ‘Online Services’ tab and select ‘Claim (Form-31, 19 & 10C)’.
- Member Details will be displayed. Enter the last four digits of your bank account and click on ‘Verify’.
- To proceed further, click on ‘Yes’ to sign the certificate of understanding.
- Click on ‘Proceed for Online claim’.
- Select ‘PF Advance (Form 31)’ to withdraw your funds.
- Select ‘Purpose for which advance is required, the amount required and employee’s address.
- Tick the check box and submit the application request.
After your employer approves the request, your money will be withdrawn from your EPF account. The money usually gets credited within 15-20 days.
Key Points – Withdrawal from NPS
Currently, there are no restrictions on withdrawal from NPS Tier 2. But there are withdrawal rules in the case of Tier 1.
The subscriber is allowed to withdraw partially under the following conditions:
- The subscriber can make a partial withdrawal only after 3 years of opening the account.
- The subscriber can withdraw only 20% of the corpus invested before maturity. And, this withdrawn amount gets added to your taxable income for the financial year.
- You can make partial withdrawals of up to 25% of the total contribution. However, the subscriber must have an NPS Tier account for at least 10 years.
- The subscriber is allowed to make partial withdrawals up to 3 times until maturity.
- There are a few conditions when partial withdrawals are tax-free:
- Higher education of the child
- Marriage of the child
- Major disease
- Critical illness
- Major organ transplant
- Although the account matures once the subscriber attains the age of 60, the subscriber can delay the maturity of the account until the age of 70.
Procedure – Online withdrawal from NPS
- Visit NSDL-CRA. Log in to your NPS account using PRAN (Permanent Retirement Account Number) issued to you.
- Select the Withdrawal option under Transact Online tab.
- Select “Partial withdrawal from Tier-1”. Confirm your PRAN and submit.
- Now enter the percentage of funds you need to withdraw and click on submit.
A form will be generated that has to be submitted to the nodal office along with the required documents.
Key Points – Withdrawal from PPF
- The account holder can fully withdraw their invested amount along with the accrued interest after the completion of 15 years.
- However, in case of an urgent need, the account holder can make a partial withdrawal after the completion of 6 years.
- The maximum withdrawal amount allowed is up to 50% of the total amount contributed, at the end of the 4th year. Also, withdrawals can be made once every financial year.
Procedure – Online withdrawal from PPF
- Get a fund withdrawal application form (called Form C) from the bank branch linked with the PPF account.
- In Section 1, you would be required to fill in the amount to be withdrawn, the tenure passed since the account was opened, etc.
- Section 2 would be for office use.
- In Section 3, you would be required to fill in the bank account in which funds are to be credited.
- Submit the application form to the bank’s branch where your PPF account lies. You might also need a copy of PPF passbook.
Hope you got the information you were looking for. Feel free to leave any queries related to EPF, PPF and NPS withdrawal in the comments and our team will be happy to answer!