The promise of death that is given to us on the day we are all born, there are indeed so many things we do to make our life meaningful. However, the fact the span between birth and death we call life is the space we have to earn to make our living, and there comes the matter of savings. Well, saving is a thing all human beings do to ease up the time when you no longer being able to work. However, a government plan is available for every firm you work for, called PF. PF or provident fund is a secured savings scheme designed by the government allotted for every firm you work with.
A brief keynote of provident fund
No matter what kind of investment you make, the goal of each is to build wealth, bear a regular income and formulate a pension when you retire and support your family. There are various such schemes available in the financial market which you can buy to facilitate your earnings and the span you retire. However, have you ever imagined the amount that you see being excluded from your salary every month is basically that you are paying for the provident fund? Hence you will need to know about the PF withdrawal online: The step-wise process and the way it works.
The way provident fund works
You must be the one considering knowing a few facts about EPF; therefore, you will need to know about its mechanism of it will be imperative. You need to know that an EPF that is an employee provident fund is a, first and foremost, retirement scheme. And you will also need to know aboutPF withdrawal online: The step-wise process, which is discussed in the latter part of the article. This provident fund is applicable to those companies that run with 20 or more employees. In a nutshell, an Employee Provident fund is an excellent scheme designed by the government that is said to be just the right plan for the employee who can’t buy a financial plan. However, when it comes to withdrawing EPF before its maturity, you will need to know the tax you might need to pay.
The employee provident fund is a retirement benefit you cannot just withdraw before it matures. If you do, you might have to pay a certain amount of tax that is applicable per the tenure. However, before that, you need to know that an EPF is comprised of 12 % of the salary if the company is not government-aided. And it will be 10% if the company is government-aided. According to the Income-Tax (I-T) Act, 1961, the amassed balance in EPF that is payable to a representative is rejected from the calculation of the all-out pay in the event that specific circumstances are met. This implies the withdrawal is excluded from the charge, and the singular need not show a similar in that frame of mind as pay. Nonetheless, it’s available under specific circumstances.
Step-wise guidance of PF withdrawal
While you are in need of money, there is a dire need to withdraw the PF money from the account. You will need to know that there is a step-wise process discussed below is a step-wise guidance of withdrawing the PF money from the PF account.
- The very first thing you will have to do is to log in using the UAN password.
- The next thing you will have to do is to enter the Captcha that you will receive from the service provider.
- For the next part, you will have to select the online service that you want to choose.
- The next you will need to do is to move to the next part of your computer screen and verify your account number; then, you will have to proceed yes.
- After that, you will have to click to proceed and claim.
- In the claim form, you will have to select require and then tap on I want to apply.
- Then you will have to select PF advance if you are to withdraw your fund from the provident fund.
- You will need to know that the employee might need to provide the application.
- One can withdraw once all these above steps are followed.
The conclusion
In the likely event you consider withdrawing the EPF before the tenure period, these charges will add based on the types. Hence, be sure before making any final decision.