You have a zillion things on your mind after you put in your papers. Your provident fund account, more often than not, may not be your number one priority. All the same, you cannot keep putting off withdrawing your money in the account. You would do well to understand the rules regarding withdrawal of PF amount after resignation.
You cannot apply for withdrawal of provident fund account balance immediately after your resignation from a company. If you chose to withdraw your money in the PF account before completion of 5 years, you will liable to pay tax on the amount. Also, as on December 2015, you cannot withdraw your PF money through any online facility in that you will have to meet your ex-employer. However, the Employees' Provident Fund Organization (EPFO) is set to launch an online facility for provident fund withdrawal by March 2016 since the Supreme Court extended Aadhaar card usage for government schemes. If the facility takes off, running from pillar to post for withdrawal of provident fund will soon be a thing of the past. What’s more, PF claims are likely to be ‘settled’ under three hours following receipt of an application after launch of the online facility. Your Unique Account Numbers (UANs) will be seeded with your Aadhaar numbers for the online facility. It is common knowledge that with the introduction of UAN (Universal Account Number), the EPF transfer has become more transparent. About 1.99 crore have activated their UANs as on October 16th, 2015.
PF money after Resignation
It is important to note that there is a 2-month waiting period, following which you can opt for withdrawal of your provident fund money after resignation. The two-month waiting period is aimed at saving your retirement corpus. However, if you are in need of money and not joining a job in India, you may withdraw your provident fund account balance after resignation. You would do well to take note of the following points
- If you plan to go abroad and do not wish to return any time soon, you can apply for the immediate withdrawal of your provident fund balance
- If you are employed in a foreign country, you can apply for withdrawal of your provident fund account after resignation
You have to submit the necessary proof such as copies of your visa and appointment letter to avail of the aforementioned concession. Secondly, a female employee can choose to withdraw money if she intends to resign to get married. Intriguingly, not many are aware of this factor. However, this waiver finds clear mention in section 69 para-2 of the EPF scheme document. The girl, must however, submit a proof of her marriage such as a wedding card. Women who wish to leave a city or country after getting married can avail of this provision.
It is important to note that the provident fund money is released after the end of one’s service, i.e, after retirement or death. If you wish to, you can take a non-refundable loan against your provident fund account.