How to Withdraw Pension Contribution in EPF Online?

A pension scheme refers to a financial tool that aids in the accumulation of funds for your post-retirement years. You can regularly contribute to this scheme and get stable returns over a longer period to build a large or sufficient pension fund. Therefore, it is imperative to know the details of your pension scheme and how to withdraw pension contributions in a hassle-free manner. Scroll down to know more about such information in detail.

What is Employee Pension Scheme (EPS)?

If you are an employee, you are aware that you and your employer contribute a specific amount to your EPF (Employee Provident Fund) account each month. Your EPF account receives both types of contributions. However, a portion of your employer's contribution goes into your pension account as well. 

The Employee Pension Scheme (EPS) is available to all employees who are eligible for EPF. Administered by EPFO, this scheme guarantees that the employee will receive a pension once they reach the age of 58.

However, to avail this pension under EPS, you need to work for a minimum tenure of 10 years and should be at least 50 years of age if you want to withdraw it at an early stage.

How to withdraw your pension contribution?

According to the Employee Provident Fund Act of 1952, an EPFO member can withdraw their PF amount and claim the EPS amount after retirement. To withdraw your pension, you are required to submit the necessary forms including Form 10C and Form 10D.

• Form 10D: This specific form is required for monthly pension withdrawals after 50 years or 58 years of age, depending on the situation.
• Form 10C: This form is required if you want to withdraw your pension contribution prior to completing your 10 years of service.
• Form 31: This form is applicable in case you want to partially withdraw from your EPF account. 

Withdrawing your pension contribution online does not involve any complicated procedure. All you need to do is follow the simple steps below:

1. Visit the official website of EPFO and log in by entering your UAN and password.
2. Under the ‘online services’ tab, choose and fill in the application form depending on your requirement. 
3. Thereafter, confirm your employment status, employment details and other KYC rules. 
4. Affix the undertaking by entering the last four digits of your bank account. Thereafter, select your preferred method of pension withdrawal.
5. Choose the Aadhaar OTP verification option and enter the OTP you have received on your registered mobile number.
6. Finally, click on 'Validate OTP and Submit Claim Form' option. If the information you have entered is accurate and complete, you will receive the due amount in your bank account. 

Why should one withdraw or transfer PF and EPS after leaving a job?

After quitting a job, many individuals do not transfer their PF to a new employer or withdraw it.  The reason behind this is that they believe that the money is safe in their PF account and they can continue to receive tax-free interest. 

However, in November 2017, as per the Bangalore bench of the Income Tax Appellate Tribunal, the interest earned on an EPF account is taxable after an employee resigns from an organisation. As a result, it is advisable to immediately transfer the EPF funds to your new employer or withdraw them. 

When can you withdraw your pension contribution?

Withdrawal of your pension contribution can be in any of the following situations. Based on your situation, withdraw the amount wisely. 

Documents required to withdraw EPF

To withdraw EPF, you need to submit the following documents: 

• Bank account statement along with an attested copy of KYC documents including Aadhaar Card, Passport, etc.
• A duly filed EPF claim form (Form 19, Form 31, Form 10C and Form 10D)
• Two revenue stamps
• ITR Form 2 and ITR Form 3 if you want to withdraw the EPF before 5 years of continuous employment
• A cancelled cheque or updated bank passbook.

What is the limit for EPF Withdrawal?

There are some restrictions if you want to withdraw from your EPF account before your retirement. Check the table below to know the situations when you are only allowed to withdraw some portion of your EPF.

Final Word

Depending on your health, fixed commitments and lifestyle, the amount of money required to live a comfortable life after retirement can vary. To meet the ever-changing financial requirements, EPF plays a crucial role as you can take out a lump sum amount from your PF after retirement. 

Frequently Asked Questions

1. Can you withdraw EPF Contribution without Aadhaar card?

Yes, you can withdraw it without an Aadhaar card. All you need to do is submit 2 copies of Form 15G/15H, furnish your PAN card number or UAN and submit Composite Claim Form to the concerned EPFO office.

2. Can I withdraw my pension fund while working?

No, you cannot your pension fund while working. However, you can withdraw the amount if you are unemployed for more than 2 months and you have completed less than 10 years but more than 6 months of service. 

3. Can I withdraw my pension contribution in EPF without leaving the job?

No, you cannot withdraw your pension contribution without leaving a job. You can withdraw it only if you are unemployed for 2 months or more.

4. Is EPS withdrawal taxable?

If you withdraw a lump sum amount, your EPS withdrawal will be taxable.

5. How to withdraw pension contribution in EPF after 10 years?

You will have to fill out the Composite Claim Form and Form 10C to withdraw pension contribution in EPF if you have completed 10 years of service.