Employee Provident Fund, commonly known as EPF, is one of the most popular saving schemes offered by the Government of India. It is also the primary scheme under Employee Provident Funds and Miscellaneous Act of 1952, managed by the Employee Provident Fund Organisation (EPFO). In here, we will guide you on partial withdrawal from the fund with EPF withdrawal form 31, how to download and the procedure to file it.
The Employee Provident Fund aims to build a sufficient retirement corpus for the investor. The corpus is created with regular monetary contributions from both, the employee and employer. The monthly contributions are supposed to be 12% of the employee’s basic salary
What is EPF Withdrawal Form 31?
The EPF withdrawal Form 31 is also known as the PF Advance Form. This form can be used to request a partial withdrawal of money from the EPF account. This account’s funds cannot be withdrawn as and when needed. Additionally, there is a set requirement for withdrawals from the EPF account. In other words, only in exceptional circumstances can a person withdraw the money.
When Can You Use EPF Withdrawal Form 31?
Some of the reasons to use EPF withdrawal form 31 include:
|Purpose of Withdrawal||Withdrawal Limit||Minimum Service Years||Other Conditions to be Noted|
|Marriage||Up to 50% of the contributions||7||For covering marriage experiences of self or dependents|
|Education||Up to 50% of the contributions||7||To cover cost of higher education for self or child|
|Home Renovations||Up to 12 times the employee’s monthly income plus the dearness allowance, the employee share plus interest-added costs, or the employee share alone, whichever is lower||5||To home to be renovated should be owned by self, partner or jointly.
It can be availed after 5 or 10 years after completion
|Purchasing Property||– Up to 36 times the employee’s monthly pay plus the dearness allowance, or the employee share plus the addition of interest or cost, whichever is lesser, is available for home purchases.
– Up to 24 times the employee’s monthly pay plus the dearness allowance, or the employee share plus the addition of interest or cost, whichever is lesser, is required for the purchase of land.
|5||The property must either be bought under the name of the member, or their spouse. It can also be owned jointly|
|Before Retirement||Up to 90% of the accumulated corpus along with interest accrued||Once the member turns 54 years old and within a year of superannuation or retirement whichever is earlier||The amount is to be used by the investor to cover their financial investments|
|Loan Repayment||Up to 24 times the employee’s monthly salary plus the dearness allowance, the employee share plus interest-added dividends, or the outstanding principal balance plus interest||10||You will have to avail a loan from an agency who must clearly specify the principal amount outstanding, and the interest charged on it|
|Not Received Salary/Unemployed Without Compensation||Share of the employee with interest||NA||The reason for not receiving your compensation can be anything except for strike|
Declaration in EPF Withdrawal Form 31
EPF withdrawal Form 31 is admissible as evidence that the justification for the partial withdrawal fully satisfies the requirements. Before submitting the form, the employee must sign it. The employer and the EPF Commissioner must fill out a few fields. Make sure to fill out the form with accurate and up-to-date information. When submitting the form, don’t forget to include the necessary documents.
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EPF withdrawal Form 31 requires you to fill in the following information:
- Member’s name, parent/spouse’s name
- Name and address of establishment
- PF account details
- Basic salary and dearness allowance
- Mode of remittance
- Signature of employer and employee
- Advance stamp receipt
- A section of the EPF withdrawal Form 31 to be filled by the employer
- A section to be used in the PF Commissioner’s office
Submitting EPF Withdrawal Form 31
- Download the EPF withdrawal Form 31 from the EPFO website
- Fill in the relevant details
- After completing out the form, get in touch with your company to obtain a certification confirming your work there. Request that they complete the form’s designation, date, and signature fields. Get the enclosures attested as soon as possible.
- Submit the filled form at the nearest EPFO office.
The Employee Provident Fund scheme is an excellent long-term savings and investment option. However, if you are looking for a short-term savings instrument, we recommend opening a recurring deposit (RD) account. Now if you are wondering what is RD account, the simple answer to that is – it is an investment tool that allows investors to make regular deposits and earn decent returns. It is an excellent investment tool for your short-term goals.