Synopsis:Under specific conditions, such as a medical emergency, further education, or the purchase or construction of a home, a partial withdrawal of PF funds is permitted.
Rule of PF Withdrawal:For workers in the organized sector, the sum placed in PF is a huge assistance. When necessary, employees take money out of their PF account. The ability to withdraw funds for various purposes is offered by the Employees Provident Fund Organization (EPFO). Allow us to inform you that the primary goal of the EPF program is to provide guaranteed retirement funds and pensions to workers in the organized sector, thereby securing their financial future after retirement. Employees may, however, take withdrawals in full or in part from their EPF accounts prior to the plan’s maturity. Nevertheless, EPFO modified the withdrawal policy lately.
New 2024 EPF Withdrawal Regulations:
You are normally not allowed to take out provident funds prior to retirement if you work a regular job without taking a sabbatical or other interruption. Partial withdrawals of money are permitted, nonetheless, in specific situations, including emergencies involving health care, pursuing further education, and purchasing or building a home. After one month of unemployment, an employee can withdraw 75% of his EPF, and after two months, he can withdraw the full 100%. However, the worker must file for unemployment in order to do this.
When will 30% tax have to be paid on withdrawal
For partial or full tax-free withdrawal of PF funds, it is mandatory that the PF subscriber has completed 5 years of contribution under the EPFO scheme. However, if the withdrawal amount is less than Rs 50,000, no tax will have to be paid. If the EPF withdrawal amount exceeds Rs 50,000 within five years of opening the account, the EPF subscriber will have to pay TDS of 10%, provided he has a PAN card. Without PAN, this tax liability becomes 30%.
