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Explained: Here's how EPFO members can get COVID-19 advance on job loss

Explained: Here's how EPFO members can get COVID-19 advance on job loss

Explained: Here's how EPFO members can get COVID-19 advance on job loss
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By Anshul  Jun 17, 2021 5:06:36 PM IST (Published)

Employee Provident Fund Organisation (EPFO), the retirement fund body, allows subscribers to avail COVID-19 advance facility even in case of job loss. In case an employee has lost the job and is yet to join another organisation, he/she can withdraw some portion of the corpus as COVID-19 advance.

Employee Provident Fund Organisation (EPFO), the retirement fund body, allows subscribers to avail COVID-19 advance facility even in case of job loss. In case an employee has lost the job and is yet to join another organisation, he/she can withdraw some portion of the corpus as COVID-19 advance.

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Recently, EPFO allowed its members to avail second non-refundable COVID-19 advance to support its subscribers during the second wave of pandemic.
Under this provision, non-refundable withdrawal to the extent of the basic wages and dearness allowances (Das) for three months or up to 75 percent of the amount standing to member's credit in the EPF account, whichever is less, is provided.
In order to apply for EPF withdrawal online during job loss too, the process is same. The subscribers must have an active Universal Account Number (UAN) and the mobile number used for activating the UAN number should be in working condition. The UAN should be Know Your Customer (KYC)-verified by furnishing information such as Aadhaar, Permanent Account Number (PAN) and bank details.
Subscribers are required to put a claim for 'advance' withdrawal via EPFO's unified portal -- unifiedportal-mem.epfindia.gov.in. The claim is then forwarded to the employer for approval. Once approved, the amount is credited to the subscriber's account.
For COVID-19 advance, EPFO has deployed a system-driven auto-claim settlement process in respect of all such members whose KYC requirements are complete in all respects. Auto-mode of settlement enables EPFO to reduce the claim settlement cycle to just 3 days as against the statutory requirement to settle the claims within 20 days.
It's important to note here that the COVID-19 related PF advance is not taxable under income tax law.
Other kinds of EPFO withdrawals (where the reason is not COVID-19) may be taxable in some instances and exempt in others.
TDS (Tax Deducted at Source) is levied on the withdrawal amounts in case the person withdraws EPF before completion of five-year service. If the EPF account is attached with Permanent Account Number (PAN), then TDS (Tax Deducted at Source) would be 10 percent. However, if the EPF account is not seeded with PAN, then the TDS rate is doubled.
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