EPF Withdrawal: EPF is like a savings account, where you deposit money and can also withdraw it when needed.
EPF Withdrawal: The needs can be met by withdrawing money from the Employee Provident Fund account. Withdrawal from EPF is not difficult. But, it has to be kept in mind that some of its rules have been set by EPFO. For example, if you are withdrawing money from the account before 5 years, then income tax (EPF Tax rules) will have to be paid. Apart from this, the rules of withdrawal are different for different reasons.
How much is the tax on EPF withdrawal?
EPF is like a savings account, where you deposit money and can also withdraw it when needed. But it is different from savings account. Because, there are some conditions for withdrawing money here. If the amount is withdrawn from the EPF account before 5 years of continuous service, then income tax (EPF Tax rules) will have to be paid. Income tax will have to be paid according to your current income slab.
Tax rules on EPF?
If the EPF subscriber completes 5 years while working and withdraws EPF, then there will be no income tax liability on him. The period of 5 years can also be one or more companies amalgamated. It is not necessary to complete 5 years in the same company. However, if the money is not withdrawn after the completion of 5 years, 10 percent TDS will be levied. If the amount is 50 thousand or more and the period is less than five years, then TDS can be saved by submitting Form 15G or 15H. In case of non-availability of PAN card, 30% TDS will be deducted.
When can PF money be withdrawn?
EPF subscriber can withdraw the entire amount of EPF for the treatment of himself or family (EPF Withdrawal). EPF money can be withdrawn at any time for treatment.
In the case of education, you have to apply from your employer under Form-31. In this, only 50% of the total deposit can be withdrawn.
There is a relaxation of 90% of the total deposit amount for home loan payment.
This limit has been kept at 50% for marriage. The entire amount can be withdrawn only at the time of retirement.
At the same time, up to 90 percent of the PF balance can be withdrawn at the age of pre-retirement i.e. at the age of 54, but this withdrawal will happen only once.
If a member loses his job, then he can withdraw up to 75 percent of the money from the
PF account after 1 month.
To meet the needs during unemployment, the remaining amount in the PF account means 25 percent of the amount can be withdrawn after two months. Read More
Source By: businessleague