How to Withdraw Money from Unclaimed EPF Account

Biggest Mistakes Made by Employees: Stop Believing Misconceptions About EPF Withdrawal. A vital component of retirement planning for millions of Indian workers is the Employees' Provident Fund (EPF). Still, an astounding sum is held in unclaimed EPF accounts. This post will help you become aware and ready to act by demystifying the process of retrieving and taking your hard-earned money out of these inactive accounts.

How Can Employees Access Their Old PF Money?

The Employees' Provident Fund Organisation (EPFO) has made great efforts to streamline the process of accessing old PF funds, even though navigating the complex web of EPF laws may appear overwhelming. The Universal Account Number (UAN), which serves as a single hub for several PF accounts accumulated during various job periods, is first issued to each employee having a Provident Fund (PF) account. To begin the process of gathering and accessing your PF money, you must first activate and connect your UAN with your Aadhaar, PAN, and bank account data.

You can access the EPFO site and look for any unclaimed PF sums after your UAN has been authorised and you've complied with KYC. To transfer funds from an old account to a new one or for direct withdrawal, the site offers comprehensive paperwork and instructions. The online PF withdrawal procedure is optimised for employees to save paperwork and provide prompt access to funds.

Initiating a withdrawal from an unclaimed EPF account requires workers to use the UAN portal's 'Online Services' page, choose 'Claim (Form-31, 19, & 10C)', and follow the instructions on the screen to finish the procedure. The system is intended to be user-friendly; it walks customers through every stage, from choosing the purpose of the PF withdrawal to confirming bank account information.

How EPF Accounts Become Unclaimed

EPF accounts get unclaimed for several reasons, the most common of which is prolonged inactivity. If no contributions are made for 36 months, an account is usually deemed inactive. This inaction may happen when a working-class individual changes jobs and forgets to move their EPF accounts to the new employer or when they forget to take money out of their old company after they quit. Moreover, if the contact information is current, the EPFO would be unable to contact you, which might cause the account to go into the unclaimed category. Employees may sometimes just forget about their accounts, particularly if they have opened many from various job periods. 

Rules for Withdrawing Unclaimed EPF Money

To withdraw money from an unclaimed EPF account, follow these guidelines:
• Eligibility: Verify if your account is categorised as inactive or unclaimed.
• Activation of UAN: Your Aadhaar, PAN, and bank information must be connected to your Universal Account Number (UAN) and enabled. 
• Online Application: To apply for a withdrawal online, use the EPFO site and authenticate using your UAN. 
• Offline Application: If internet access is not available or is not desirable, you may still send a paper claim form to the closest EPFO office. 
• Documentation: Be ready to provide the required paperwork, including job history, residence verification, and identification verification. 
• Tax Implications: Recognise the potential tax consequences of taking money out, particularly if you do so before serving five years to the fullest. 
• Follow-Up: Use the EPFO site or get in touch with the helpdesk to stay informed about the progress of your claim.

How To Withdraw Money From an Unclaimed EPF Account

Withdrawing money from an unclaimed EPF account is a straightforward process, facilitated by the EPFO to ensure that employees can access their funds with ease. Here is a step-by-step guide to help you through the process:

Step 1: Activate Your UAN
First and foremost, ensure that your Universal Account Number (UAN) is activated. Your UAN acts as an umbrella for the various member IDs allotted to an individual by different employers.

Step 2: Connect UAN and KYC Information 
Make sure your bank account data, Aadhaar, PAN, and other KYC details are current and connected to your UAN. For the withdrawal procedure to be verified, this step is essential. 

Step 3: Go to the EPFO Portal 
Enter your UAN and password to access the EPFO site. Go to the 'Online Services' page to locate the withdrawal option.

Step 4: Provide Bank Account Information 
You will be asked to input your bank account number's last four digits for verification when you choose the withdrawal option.

Step 5: Verify and Proceed
To begin the withdrawal procedure, click 'Proceed for Online Claim' after your bank information has been verified. 

Step 6: Select the Claim Type
Select the kind of claim that you want to make. Depending on your needs, choose "PF Advance (Form 31)" or "PF Withdrawal (Form 19)" to withdraw money.

Step 7: Fill in the Details
Fill out the application by providing the necessary information, including your address, the needed amount, and the reason for the advance.

Step 8: Upload Documents (If Required)
You could be required to supply supporting documentation, depending on the cause of the withdrawal.

Step 9: Submit the Claim
Check your application for mistakes before submitting the claim. For verification, an OTP will be issued to the registered cellphone number.

Step 10: Employer Approval
The withdrawal request must be approved by your employer once it is submitted. The duration of this process may vary according to the company.

Step 11: Claim Processing
The EPFO will handle claim processing when your employer approves it. Your claim's status may be monitored via the EPFO site.

Step 12: Funds Disbursal
The claimed amount will be deposited to the bank account associated with your UAN after successful verification and processing. Funds are typically distributed after 15-20 days following claim approval.

The procedure is user-friendly, but updating your information and following each step can help you prevent delays or claim denials.

Find Your Unclaimed EPF Account Details

Use the 'Inoperative Account Helpdesk' or 'Know Your Claim Status' function on the EPFO site to get unclaimed EPF account data. By providing your UAN and other necessary identity information you would be able to quickly locate any monies that are waiting to be claimed from inactive accounts 

Submit a Claim Form

Depending on your accessibility and preferences, you may submit a claim form online or offline to take funds from an unclaimed EPF account.

Online
• Using your UAN login credentials, access the UAN Member Portal. 
• Go to "Online Services" and then choose "Claim (Form-31, 19 & 10C)".
•  Complete the claim form by entering the necessary information.

Offline
• From the EPFO website, download the applicable EPF withdrawal form. 
• Fill out the form completely, then attach the required documents.
• Send the form to the EPFO office that is closest to you.

Track Claim Status

• Via UAN Portal: Select 'Online Services' followed by 'Track Claim Status' after entering your UAN and password to view the current status of your withdrawal/transfer claim.
 

• EPFO Website: Navigate to 'Services' > 'For Employees' > 'Know Your Claim Status' on the EPFO website. To observe the status of your claim, proceed as instructed.
 

• SMS Alerts: If your mobile number is associated with your account, EPFO will notify you via SMS regarding the status of your claims.

Receive Payment

• Direct Transfer: Money is sent straight to the bank account associated with your UAN when your claim is approved.
 

• SMS Notification: As soon as the payment is completed, you'll get an SMS notice.

Withdraw Online via UAN

• Access UAN Portal: Log in using your UAN to start an online withdrawal claim.

• KYC Compliance: To ensure a smooth procedure, make sure your KYC information is up to date.

Tax Implications

• Taxable Withdrawals: Withdrawals that occur before five years of service are subject to taxation.
 

• Exemptions: After 5 years, withdrawals are exempt from taxation
 

Protect Your EPF Account

• Update KYC Often: To guarantee account security, keep your KYC information current.
 

• Transaction Monitoring: Keep a close eye out for any unauthorised transactions on your EPF account statements.
 

• Safe Login Information: Keep your OTP, password, and UAN private at all times.

How to Avoid Unclaimed EPF Balances in Future

• Consolidate Accounts: To make tracking easier, combine many EPF accounts into a single one using the UAN. 
 

• Update Nomination: Make sure your nomination information is up to date to allow for a seamless transition in the event of unanticipated events. 
 

• Active Engagement: To ensure that you get EPFO alerts on time, check your EPF balance regularly and maintain your contact information up to date. 
 

• Transfer Upon Job Change: Make sure to move your EPF funds to the new account that is connected to your UAN each time you change jobs.

Conclusion

It takes diligence and regular maintenance to protect your EPF account and make sure your hard-earned earnings are claimed. You can prevent your EPF account from becoming unclaimed and guarantee your future financial stability by doing the actions mentioned above.