Withdraw Your PF Balance Easily After Resign | Step by Step Guide

Komal Bajpai

Author

Updated: 28-01-2025 at 6:11 AM

Withdraw Your PF Balance Easily After Resign | Step by Step Guide

As per guidelines from the Employees' Provident Fund Organisation (EPFO), certain stipulations must be satisfied to withdraw one's provident fund (PF) savings when resigning from a job. Your PF account is required to show continuous service for at least two months.

Additionally, all know-your-customer (KYC) documents need to be completed and linked to the account. Your previous employer must have also fully updated your KYC records.

Eligibility For PF Withdrawal

PF withdrawals are made on certain conditions. Those conditions are mentioned below in detail for one’s better understanding:

After retirement
After resigning and remaining unemployed for at least 2 months
People can also opt for partial withdrawal on some conditions such as:

Medical emergencies
Marriage
Education of children
Construction, purchasing, or renovation of house
Repayment of home loan

Steps To Apply For PF Withdrawal

Step 1: Apply for PF Withdrawal

Login to the Member e-Sewa portal using your UAN and password.
Click to Preview
Under 'Online Services', select the 'Claim (Form-31)' option.
Select 'PF Advance (Form 31)" from the drop-down.
Enter the last working date and submit.
You will get an OTP on the registered mobile number, which needs to be entered to proceed further.

Step 2: Verify bank account for credit of PF amount

Go to the 'Manage' tab and select the 'KYC' option.
Click on 'Bank Details' and verify the bank account linked with your Aadhaar.
The account holder's name must match that on the Aadhaar.
The account number is verified through electronic means or by uploading a check image.
Linking verified bank accounts ensures direct PF amount credit without manual intervention.

Step 3: Track Claim Status

From 'Track Claim Status' under the 'Online Services' tab, you can check the latest status.
It reflects all stages, like claim receipt, approval, and payment confirmation.
Status gets updated via SMS on your registered mobile number.
The full EPF withdrawal amount gets credited directly to your bank account within 10–15 days after claim approval.
Withdrawing pension funds along with the PF balance

Documents Needed

To successfully apply for PF withdrawal, people need to submit some documents such as:

Universal Account Number (UAN)
Identity proof
Bank account details
Employment information

Procedure For PF Withdrawal After Resignation

Those who would like to apply for PF withdrawal after resignation can do so by following the steps mentioned below:

Login to the Member e-Sewa portal using your UAN and password.
Click to Preview
Under 'Online Services', select the 'Settlement (Form-19)' option.
Select 'PF Settlement (Form 19)" from the drop-down.
Fill in the required details.
Attach the supporting documents like a canceled cheque or a copy of your bank account’s passbook.
Submit the form and wait for approval after which your PF amount will directly be deposited into your bank account.

Taxation Of PF Withdrawal

The taxation on PF withdrawals is charged based on when the withdrawal is being made. So there are two conditions for it:

Before 5 years: If the PF withdrawal is being made before 5 years, tax is imposed on both, the main amount and the interest earned on it.
After 5 years: If the PF withdrawal is being made before 5 years, tax is not imposed.

Tax Benefits Of e-PF And Pension Withdrawals

The key advantage is complete tax exemption on the PF corpus and earned interest under Section 10(12) of the Income Tax Act. For pension monies, up to one-third or a maximum of ₹50,000 withdrawn yearly is tax-free. By facilitating full online PF/pension withdrawals without tax implications, EPFO empowers professionals to access savings flexibly amid career changes for future finances.

Withdrawing Pension Funds Alongside PF Balance

In addition to PF savings, you may submit a claim to withdraw pension funds held by EPFO if you are eligible by age or superannuation after the vesting period by filling out Form 10-C. Three-fourths can be withdrawn as a lump sum, and the remaining one-fourth is paid as a monthly pension. Proof of employment and identity documents must be provided.

Conclusion

Quitting a job is often the first step towards new opportunities. However, the anxiety surrounding the withdrawal of hard-earned savings can be challenging. With online claim settlement and direct bank transfers, EPFO has set new standards of service delivery by offering assistance, such as tracking claim status in real-time, combined with predictable tax exemptions, and bringing transparency.

You can now avoid last-minute stress by having an understanding of EPF withdrawal protocols. The next time a tough choice emerges between job security and career growth, your retirement savings need not be a constraint.

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