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4/21/21

Withdrawals from PF also have to be taxed, find out here when and how much tax has to be paid on withdrawals





Speaking of work: Withdrawals from PF also have to be taxed, find out here when and how much tax has to be paid on withdrawals







Many people are facing financial problems due to the Corona epidemic. If you are also facing a shortage of money, you can withdraw money from your Employees Provident Fund (EPF / PF) account. Many people think that it is difficult to withdraw money from EPF but it is not. All PF money can be easily withdrawn. We are telling you how much money you can withdraw from an EPF account if needed and how much tax you will have to pay on it.

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Withdrawal of 75% of PF on withdrawal one month after departure of job Under the rule of PF withdrawal, if a member loses his job, he can withdraw 75% from PF account after 1 month. This allows him to meet his needs during unemployment. The remaining 25% deposit in PF can be withdrawn after two months of employment.

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All money can be withdrawn for treatment
EPF account holder can withdraw all amount of EPF for his or her family's treatment. In this case, EPF money can be withdrawn at any time. He has to provide proof of hospitalization for a month or more.


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You can withdraw 90% for home loan repayment and 50% for education. In case of education, you have to apply through Form 31 through your employer. You can withdraw only 50% of the total deposit till the date of withdrawal of PF. For home loan repayment, the account holder is allowed to withdraw 90% of the total deposit amount. As well as for marriage this limit is kept at 50%.

All money can be withdrawn
at the time of retirement only at the time of retirement all amount can be withdrawn at once. You must be 54 years old for pre-retirement. In this case you can withdraw 90% of the total PF balance, but this withdrawal can be done only once.

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Income tax rule on PF withdrawals
If an employee completes 5 years in the company and then withdraws money from EPF, he does not have to pay any tax. But a 5-year period can also be a combination of one or more companies. It is not necessary to complete 5 years in a single company. The total duration must be at least 5 years. An employee does not have to pay tax even if he loses his job due to poor health, business closure or any other such reason and does not complete his 5 year term.

TDS and tax are deducted 10% if the 5 year period is not completed. If the amount is 50 thousand or more and the period is less than five years, TDS deduction can be avoided by submitting Form 15G or 15H. Also if you do not have a pen card you will have to pay 30% TDS. But if you withdraw less than Rs 30,000, you do not have to pay TDS. However, for that you have to show the receipt of income tax return.





Will there be tax on withdrawals from EPF account five years ago?
As mentioned above, income tax has to be paid on withdrawals from PF account five years ago. Income tax on this amount has to be paid according to your current slab. You have to pay tax as per the tax slab applicable to your total income for the year in which you have contributed to the PF account.

Assume that you deposited money in EPF in the years 2014-15 and 2016-17. Then in the year 2017-28 you quit your job and in the same year you decided to withdraw the amount deposited in the PF account. Withdrawals from your PF account in this way will have to pay tax in the year 2017-28. You will have to pay tax after deducting your amount this year as per the tax levied on your income in the year 2014-25 and 2016-17.

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