EPFO has launched an e-Nomination campaign making it mandatory to register a candidate online
By Homi Mistry & Mousami Nagarsenkar
Employees Provident Fund (EPF) members can now withdraw their PF account balance via the unified portal (e-SEWA member) of EPFO. Although the online installation has made the process of withdrawing the PF easier, the member must ensure that all the prerequisites are met for a hassle-free experience.
Key points to consider before
Removal of PF
Enable Universal Account Number (UAN): It is not possible to withdraw PFs online without having a UAN. The UAN is a unique identification number assigned to an EPFO member to which all their PF accounts are linked. You can generate the UAN on the e-SEWA Member Portal yourself using an Aadhaar-based one-time password (OTP).
Once the UAN is generated, activate it online via the e-SEWA member portal or via the UMANG app.
Linking Aadhaar with UAN: The government has made it mandatory to link UAN with Aadhaar number to enable the employer to deposit monthly contributions. Aadhaar-UAN seeding can be done online through the e-SEWA member portal or through the UMANG app.
Complete the Know Your Customer (KYC) process: KYC is a unique process. Aadhaar number is mandatory to be eligible for online claim submission. The PAN is mandatory if the number of years of service is less than five years at the time of the withdrawal of the funds. Bank details must be entered to credit the withdrawal proceeds. Additionally, the employer must approve the KYC details online, after which EPFO will update the KYC status as “verified”.
Complete electronic appointment
EPFO has launched an e-nomination campaign whereby all EPF members must register a candidate. The member must provide the applicant’s name, date of birth, gender, relationship, address, bank details (optional), Aadhaar, guardian (in case of a minor) and photograph. Electronic nomination must be completed prior to PF withdrawal (except medical related claims and Covid-19 advance). Physical submission of documents is not required.
If the member has a PF account with a former employer, the balance of which has not been transferred to their PF account with the new employer, ensure that this transfer takes place before submitting the PF withdrawal request.
The member’s old PF amount is automatically transferred to their new account where their UAN is seeded and is fully KYC compliant. However, when the employee had a PF account before the introduction of UAN, it is necessary to initiate the transfer process separately. The application form must be attested online by the employer (former or current) and the employer must digitally approve the EPF transfer request by accessing the employer interface of the unified portal.
Once all the above steps have been taken, the member can submit a request for withdrawal of his FP balance. If the net taxable income is less than Rs 2.5 lakh, he can submit Form 15G/15H (if applicable) for non-deduction of withholding tax (TDS).
Homi Mistry is a partner of Deloitte India. Mousami Nagarsenkar is Director and Nikita Malkan is Deputy Director at Deloitte Haskins & Sells LLP.
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