How to Withdraw Provident Fund

In three occasions you can withdraw Provident Fund ( PF ). 

1. If you have stopped working or jobless
2. If you are going to be self employed.
3. If you are retired person.
4. Partial withdrawal in the form of Loan

The third option above is genuine need for the retirement life. But apart from that case, generally full withdrawal of provident fund not allowed unless he/she is a jobless or self employed.

If he/she is a jobless or stopped working then, can apply for PF after the 60 days or Two month of jobless. At the time of applying for the PF, he/she should not be in job. 

If you are applying for PF at the time of switching the job, then it is an offence and legal course can be applied. Be aware of the legal issues. ( Because this method followed by most of the people in the industry )

You should provide declaration stating the reason for the PF withdrawal. In this case the reason would be jobless or self employed.

Partial withdrawal of PF is possible under certain circumstances in the form of Loan by stating the reason for opting the loan. The reason can be one of the following

1. Buying a House / Property.
2. Marriage for Self or Daughter.
3. Education for Self or Children. 
4. Medical Treatment for Self or Family.

Proof has to be submitted in all above cases.

In case of Marriage and Education, a person can withdraw only up to 50% of the total PF amount and he should have completed minimum 7 Years of experience in the work. In this case withdrawal is allowed only three times during the entire service tenure. Once after withdrawal, he / she should start repaying the loan.

In case of Medical treatment, there is no restrictions on number years of service. But you can withdraw only six times of your basic salaries. In this case withdrawal is allowed only three times during the entire service tenure. Once after withdrawal, he / she should start repaying the loan.

In case of Buying a house, you should have minimum 5 Years of work experience and you can withdraw up to 36 times of your monthly salary. In this case withdrawal is allowed only once during the entire service tenure.

In case of Buying a property, you should have minimum 5 Years of work experience and you can withdraw up to 24 times of your monthly salary. In this case withdrawal is allowed only once during the entire service tenure.

In case of alteration or renovation of house, withdrawal is allowed up to 12 times your monthly salary and only once during the entire service tenure. But the house need to be registered in your or your spouse's name or should be owned jointly.

If you want to withdraw for repaying your home loan, then you should have completed minimum 10 years of employment. You can withdraw up to 36 times of your monthly salary and withdrawal is allowed only once during the entire service tenure.

If you are retired or stopped working, s/he should fill a PF withdrawal form with his/her bank account details and a counter sign by the employer. After this, the money is directly sent to your bank account. The process takes longer time. It can be anywhere between 2 weeks to may be up to two months also.

Reference : Want to withdraw from your provident fund account? Here's how!