Before the implementation of the Composite Claims Form by the EPFO, the whole process involving the required attestation of one’s employer and so on to make a PF withdrawal took a few months and in some cases years. Employees more often than not were harassed by their employers when it came to them attesting the withdrawal form. Thankfully, following the Government of India’s initiative to ease the process of settling EPF claims, now EPF customers can get their claim settled in 5-10 days. All that the customer needs to do is link his/her Aadhaar card to their UAN to get the job done in a few days and fill in the Composite Claims Form - which contains the Aadhaar details of the EPF member.
What you need to keep in mind before making an EPF claim settlement
The Government of India has introduced the Composite Claims Form - which holds the details of the customer’s Aadhaar card. Using this Composite Claim form, employees now do not need the attestation of their employer to make a withdrawal and neither is there a requirement for the employee’s KYC documents as all that is required is the Composite Claims Form. The introduction of the Composite Claims Form has reduced the time taken for an EPF claim settlement, reducing the process to within 5-10 days. To ensure that the claim is done within 5-10 days, employees need to fulfil certain conditions. The EPF claim has to filed online - https://unifiedportal.epfindia.gov.in/ Employees need to have a valid UAN to file for PF settlements. Employees have to then update their Aadhaar card details and their bank details - account number, account name, bank name, etc. - on the EPF portal. Next, the details have to be verified by their current employer, including the KYC documents provided by the employee. Once the details have been verified by the employer, it is stored on the EPF database. PF members can file for a claim settlement only after two months of changing their job.
Benefits of the Composite Claims Form
Recently introduced by the Government of India, the Composite Claims Form replaces the benefits that come with Form 19, Form 10C (for pension) and Form 31 (for partial withdrawals from EPF). Now, to make PF settlements, customers have to only fill the Composite Claims Form. The benefits of the Composite Claims Form are listed below: Attestation of the the employee is not required when filing for PF settlements using the Composite Claims Form. If the employee wishes to make a partial withdrawal from his/her PF account, he/she doesn’t need to submit any KYC documents to process the withdrawal - the Composite Claims Form is all that is required.
Steps to make a PF withdrawal online
To make a PF claim settlement, employees need to follow the steps mentioned below: Login to the EPF member portal. On the website, click on “KYC” that comes under the “Manage Option”. Enter the details of your Aadhaar card and bank. Click on “submit” once the details have been entered. The Aadhaar card details and and bank details have to be verified and approved by your current employer. Once your employer has verified your details and you have filed for a PF settlement, an OTP will be sent to your registered mobile number. Enter the OTP and submit the Composite Claims Form. Once this is done, the process for making a withdrawal is initiated. Employees can expect their PF settlement in their registered bank account within 5-10 days.
The EPF has a lock-in period of 5 years, within with any withdrawal made will be termed as a premature withdrawal. All withdrawals made after completion of 5 years in the EPF will be completely tax free as the EPF enjoys the EEE (Exempt, Exempt, Exempt) status. Withdrawals made before completion of 5 years in the scheme will be subject to TDS (Tax deducted from source) under Section 80C of the Income Tax Act. For example, if an employee has worked in one company for three years and another one for two years and has been making contributions towards the same PF account, he/she is eligible for withdrawals that would be completely tax free. Now, customers can make withdrawals, contributions and so on towards the EPF online, a factor that is luring more and more employees into this savings scheme. Currently, the EPF has an interest rate of 8.65% - the highest in tax savings instruments, making this another bonus feature of this savings scheme.