During the pandemic, everyone is running with their own deposits. Those employed people who have PF account, they also think about withdrawal from it. You can do this, but this savings is for your retirement. So before withdrawing money from PF account it is important to keep some things in mind.
The money deposited in your PF account is mainly a part of your retirement plan. Therefore, it is generally said that one should not withdraw money from PF without any major need. However, the Provident Fund Organization provides the facility of withdrawal to its account holders. Some people take loan against their deposits for some important work before retirement but after the second wave of pandemic and black fungus, EPFO has facilitated that account holders can take non-refundable advance.
EPFO provides facility of non-refundable advance
In March 2020, EPFO had given this facility to the account holders under the Pradhan Mantri Garib Kalyan Yojana that they can take non-refundable advance from their PF account due to financial constraints due to covid. On 31 May 2021, EPFO announced that account holders can also take another non-refundable advance. The rules for the second advance are same as for the first non-refundable advance.
How can covid based withdrawal from PF be done
If you want to take it online, then your Universal Account Number should be linked with your Aadhaar, PAN and Bank Account. After that you choose online service with UN and Password and claim Form 31, 19 and 10C. After that you will verify your bank account number. Will fill the reason for withdrawal and how much amount is required. OTP will be received after uploading the scan copy of the bank passbook or cheque. OTP will come on your registered number. After entering the OTP, your claim will be registered and your requested amount will reach the bank account after a process.
It would be good to note a few things
You can claim but also keep in mind that this money is for your retirement and what will be the effect of withdrawing money from it. PF is currently the highest interest paying institution on deposits, so it will also have an impact on deposits. The higher the amount, the more interest you will get. There is also a tax exemption on the interest earned on this. Try this that if you are in financial trouble due to covid, then pay attention to other options first. If there is no arrangement from anywhere, then only then hand the PF money. When you recover from your problem, you can balance this withdrawal by increasing your PF contribution.