How to close a PF account

Can you close your PF account online?¹

To know how to close an EPF account online, you should know the available scenarios when closure is possible. These are as follows -

1. You can withdraw the full amount after retirement or leaving employment.
2. When an employee dies, the nominee gets the full balance of the EPF account.

Both these scenarios have specific rules which should be fulfilled to become eligible for PF withdrawal. Let’s understand what the rules state.

 

1. Retirement or Job Change²

You can withdraw your PF balance after retirement. However, if you resign and are looking to withdraw the PF amount, here are some conditions that you would have to fulfil –

1. You will have to give a 1-month notice period to your current employer. If you have not served the notice period, you must pay the corresponding amount to your employer.
2. Two months of continuous service are mandatory with the current employer.
3. Your personal details should be updated on the EPF portal
4. You must not have joined another job after resigning from your current position
5. 75% of the PF balance can be withdrawn after one month of resigning from the current job, and the balance is available after the completion of two months.

 

Closure of PF Account in Case of Employee's Death³

Once an employee dies, the nominee who is registered at the time of opening the account acquires the right to claim the full accumulated balance. In case the nominee is a minor, then the guardian of the nominee attains the right to claim.

If there is no nominee, then the family members of the employee can claim the accumulated amount by providing the required documents. These documents include the following –

1. A list of all the surviving family members of the EPF account holder as on the date of death. The list should be provided by either of the following –
   1. The last employer
   2. Tehsildar or mamlatdar
   3. Executive magistrate
2. The list should state detailed information about the family members, such as name, age, relationship with the deceased EPF member, marital status (for parents), and whether the member is a dependent.

If any family member is a minor, the guardian of the minor can claim the amount.

And in case the deceased employee does not have either the nominee or family members, then the legal heir can claim the accumulated amount by presenting the legal heirship certificate.

 

Terms and Rules for PF Account Closure¹

There are a few terms and conditions that you need to keep in mind before you close the PF account. The eligibility for withdrawal is based on the years that you have served and your age bracket. Your years of service will decide what kinds of forms you will file and how much you can get either right now or at the time of retirement. The following is the list of terms and conditions to withdraw the PF amount in case of a change in employment:

 

1. Service Period Less than 10 Years

Even if you have a service period of less than 10 years, you can claim both the EPF and EPS. To do so, you would have to fill out a composite claim form stating ‘final PF balance’ and ‘pension withdrawal’ on the form. If you choose to return to work, then you might submit Form 10C.

 

2. Service Period of 10 Years

If you are between 50 and 58 years of age and have completed 10 years of service, you can receive an early pension. Fill out the composite claim form and Form 10D for the same.

 

3. Service Period Over 10 Years

If you are below 58 years of age, you would not be allowed to withdraw the EPS account balance even if you have completed 10 years of service. The pension amount would be credited only after 58 years of age.

 

4. Age 58 and Above

If you are 58 years and above, you are eligible to claim the full PF amount. You can fill out and submit Form 10D and withdraw the amount.

 

How to Withdraw Your Final PF Balance?¹

The process of withdrawing your full PF balance includes simple steps that you can do either online or offline. Employee Provident Fund Organisation (EPFO) has simplified the process of settlement, and it is accessible to all members. The information you will require is your UAN credentials, registered mobile number, and associated bank account. Both methods are explained below:

 

Online PF Withdrawal

1. Go to the EPFO official portal and log in with UAN, password, and captcha.
2. Go to Online Services and choose claim (Form-31, 19, 10D, and 10C).
3. Enter all the necessary information and click ‘Verify’.
4. Confirm signing the ‘Certificate of Undertaking’ by clicking on ‘Yes’.
5. Select “Only PF Withdrawal (Form 19)” from the dropdown list.
6. Enter your full address and check the checkbox about the disclaimer.
7. Click Get Aadhaar OTP and fill in the OTP that you have gotten on your registered mobile.
8. After registering on the portal, you will receive a reference number.
9. The PF balance would be transferred to the bank account linked with your UAN in 15-20 days.

 

Offline PF Withdrawal

1. Get the Composite Claim forms (Aadhaar and non-Aadhaar forms) from the EPFO site and download them.
2. In case of Aadhaar-based claims, fill out the Composite claim form (Aadhaar) and directly submit it to your jurisdictional EPFO office. Your employer doesn’t need to attest to this document.
3. In case of a non-Aadhaar-based claim, complete the Composite Claim form (non-Aadhaar) and get your employer to attest it before submitting it.

 

Documents Required for PF Closure

If you are closing your PF account online through the EPF portal, you don’t need too many documents. You would have to upload scanned copies of your bank account’s passbook or chequebook to provide your bank account details.¹

 

Key takeaway

1. EPF is a retirement-oriented savings scheme applicable to salaried employees where both employees and employers contribute to build a corpus.
2. You can close the PF account on retirement, resignation, or the death of the member.
3. There are different terms and conditions associated with closing the PF account. Know the conditions so that you can close the account and withdraw the balance seamlessly.
4. You can close your PF account online or offline by following the specified steps.
5. Online claims will only need a scanned copy passbook/cancelled cheque with account details and valid UAN credentials.

 

Conclusion

While you can create a retirement plan with the account, knowing how to close a PF account is critical for salaried employees who want to close their accounts after retirement or resignation. The process has been streamlined and can be completed through the online EPFO portal. All you need are your UAN details and a KYC-compliant account for easy closures. Know the formalities for closing your PF account so you can access your savings when needed, whether you have reached the retirement age or not.

 

FAQs

1. How do I apply for PF account closure online?

   Log in to the EPFO portal using UAN credentials; under Online Services, select Claim (Form-31, 19, 10D & 10C) and select the suitable withdrawal form, verify the details, accept the undertaking, and submit it with Aadhaar and OTP.

2. What documents are required to close a PF account?

   If you close your PF account online, you will not need any documents. You would just have to upload scanned copies of your bank passbook or chequebook.¹

3. How long does it take to process a PF account closure request?

   PF account closure requests are usually done within 15 to 20 days of successful registration of the closure request.¹ Upon approval and verification, the funds are directly deposited into your UAN bank account.

4. Is it mandatory to provide a PAN card for EPF withdrawal for employees?

   No, it is not necessary. However, it is better to consider PAN card as it would reduce the TDS at the time of withdrawal.

 

Sources

1. https://cleartax.in/s/close-pf-account-permanently#h0
2. https://cleartax.in/s/pf-withdrawal-rules-after-resignation
3. https://www.epfindia.gov.in/site_docs/PDFs/Downloads_PDFs/Form20_Instructions_Eng.pdf