Form 10-C

What is Form 10 C?

Form 10C is an essential document used in India for claiming benefits associated with the withdrawal of the pension fund under the Employees' Pension Scheme (EPS).

Form 10C is specifically designed for employees covered under the Employees' Provident Funds and Miscellaneous Provisions Act, 1952, and is part of programs administered by the Employees' Provident Fund Organisation (EPFO).

Under certain conditions, the withdrawal benefit enables qualified employees to request a lump sum payment from their pension fund.

EPFO issues Form 10C, a scheme certificate, to its members who have clocked 180 days of continuous service but less than 10 years. Members may use this form to withdraw their accrued pension amount under certain restrictions.

The primary objective of Form 10C is to provide financial assistance to individuals who cannot secure employment after leaving their previous jobs. Additionally, in the event of a member's demise, their family or legal nominee may withdraw the accumulated pension amount.

The employee must provide certain information when submitting the form for the withdrawal benefit claim. The form often requests information like the employee's name, address, job information, EPF account number, establishment code, bank account information for the benefit payment, and the reason for leaving the service.

It's crucial to understand that Form 10C differs from Form 19, which is used to request the withdrawal of an employee's balance from their provident fund (EPF). It focuses primarily on the EPS withdrawal advantage.

Purpose and Significance of Form 10C

The intent and relevance of Form 10C are to simplify the Employees' Pension Scheme (EPS) of India's withdrawal benefit claim procedure. The main elements of it are listed below.

Claim Initiation

Form 10C is the initial step an employee must take to formally request the withdrawal benefit provided by the EPS. Employees express their desire to use the pension benefits to which they are entitled under the plan by completing and submitting the form.

Information Gathering

The employee must provide certain information on Form 10C to file a withdrawal benefit claim. An individual's name, address, employment history, EPF account number, establishment code, bank account information for payment, and reason for leaving the service are all captured on the form.

This data makes it possible to confirm the employee's eligibility and guarantees that the right pension amount is computed.

Documentation And Record-Keeping

The Form 10C is crucial for keeping track of employee claims made under the EPS. All submissions are kept on file by the EPFO, which makes it easier to track and manage the pension payment process.

Additionally, it offers a record of the employee's withdrawal benefit claim that can be used for future reference, audits, or, if necessary, dispute resolution.

Pension Disbursement

The information collected through Form 10C is used to determine the pension amount and initiate disbursing it to the qualified employee.

Ensuring that the paperwork is submitted accurately and completely speeds up the processing of the withdrawal benefit and guarantees that employees receive their legally due pension payment on time.

Legal Compliance

The Employees' Provident Funds and Miscellaneous Provisions Act, 1952, and its related regulations set forth the legal parameters for the EPS.

Employees follow the rules set forth by the Employees' Provident Fund Organisation (EPFO) for claiming the withdrawal benefit by utilizing Form 10C, which complies with all legal specifications.

This adherence to the established procedure ensures the pension payment process's fairness, uniformity, and transparency.

Withdrawal Benefits under EPS

Employees can withdraw money from the pension accounts they can access through the Employees' Pension Scheme (EPS) in a lump payment. Here are the following points to understand the benefits of EPS.

1. Eligibility Criteria: Employees must fulfill certain requirements to be eligible for the withdrawal benefit, which includes:
   • Completion of at least ten years of qualifying service, including time spent working for one or more EPF Act-covered businesses.
   • Obtaining the withdrawal benefit by fulfilling the requirements established by the Employees' Provident Fund Organisation (EPFO).
2. Circumstances for claiming withdrawal benefit: Employees may be eligible to receive the withdrawal benefit in several situations, including the following:
   • Retirement: The decision to leave one's job at the age of superannuation, often 58 years old.
   • Early Exit: When a worker retires before reaching the age of superannuation despite having at least ten years of qualifying service.
   • Invalidity: When a worker has a lifelong disability and cannot work any job that provides a living, they are considered invalid.
   • Migration: When a worker relocates to a nation where the EPS is not applicable, they lose their pension eligibility.
   • Death: In the event of the employee's passing, the nominee or legal heir may collect the withdrawal benefit 
3. Amount Paid in One Go: The withdrawal benefit is paid from the employee's pension fund in one go. According to the EPS regulations, the sum is determined using the employee's pensionable pay, the number of years of service that qualify, and other elements.
4. Application Process: To apply for the withdrawal benefit, an employee must complete Form 10C and send it to the EPFO. The relevant data is gathered, including personal particulars, employment history, EPF account number, bank account information, and the reason for leaving the service.
5. Tax Consequences: The withdrawal benefit under EPS is taxable. Depending on variables such as the employee's service history, the reason for withdrawal, and the applicable tax laws, different tax rules and exemptions may apply.

Procedure for filling out the Form 10C

To guarantee speedy processing of your withdrawal benefit claim under EPS, it is crucial to completely fill out Form 10C and supply all necessary information and supporting documentation. Here are the following steps to follow:

1. Obtain the Form: To get a physical copy of Form 10C, go to your local EPFO office or download it from the Employee Provident Fund Organization (EPFO) website.
2. Provide Personal Information: Complete the form by entering your full name, address, date of birth, gender, and contact information properly.
3. Employment details: Enter your employment information, including your EPF account number, establishment code, and the date you started working for the company. Add the region or EPFO office where your account is kept, along with the name and address of your employer.
4. Reason for leaving service: Indicate your reason for leaving the service, such as retirement, resignation, termination, or migration to a nation where the EPS is not applicable.
5. Information of Your Bank Account: Indicate the information of the bank account to which you want the withdrawal benefit to be credited. The Indian Financial System Code (IFSC) and the bank’s name, branch, and account number are included.
6. Verification and Declaration: Carefully read the declaration, then sign your name and date in the appropriate section to attest to the veracity of the data provided.
7. Supporting Documents: Be sure to include all required supporting documents with your application, including proof of identity, proof of address, EPF account information, your documents, and any other documents the EPFO ​​may require.
8. Review and submission: Ensure all the information on it is accurate and any necessary attachments are included. Make a copy of the completed form and any supporting documents for your records. 
9. Submission: Following the instructions provided by the EPFO, submit the duly filled Form 10C and the supporting documentation to the regional EPFO office or the relevant organization.

Researched and authored by Priya | Linkedin

Reviewed and edited by Parul Gupta | LinkedIn

Free Resources

To continue learning and advancing your career, check out these additional helpful WSO resources:

• Form S-1
• Form S-4
• Form 8-K
• Form 10-C
• Form 10-Q