The Employees Provident Fund Organization (EPFO) allows withdrawal of some part of the Provident Fund (PF) for marriage, medical emergency, education etc. before retirement.
new Delhi. Provident Fund is a better investment option for retirement. Provident Fund is the amount that is usually received after retirement. However, the Employees’ Provident Fund Organization allows to withdraw some portion of the provident fund for marriage, medical emergency, education, etc. before retirement. There is an online facility for withdrawal of provident fund of EPFO. According to EPFO, after the online application is filed, the entire process of extracting PF is completed in 3 days.
Also Read: ITR: You May Not Claim Income Tax Refund This Year: Here’s Why
EPFO Rules
1. Purchase or construction of house, repayment of loan, non-payment of wages for two months, partial withdrawal or advance withdrawal of PF money for self / daughter’s marriage is allowed. You can also do PF withdrawal for the treatment of yourself, wife, children or parents.
2. For online PF withdrawal, the customer must have an active universal account number (UAN) and a mobile number is required to activate the UAN number.
3. Universal account number should be KYC verified with Aadhaar, PAN card and bank details.
4. Customers can claim for advance withdrawal through the integrated portal of EPFO. The claim is then sent to the employer for approval. After approval, the amount gets deposited in the customer’s account.
5. According to financial experts, if you withdraw money from the provident fund, then at the time of retirement you will have to face a long loss. So try to make sure that you do not have to withdraw money from PF during the job.
6. These withdrawals are taxable in some cases and are exempt from tax in some cases. If a person withdraws PF after the completion of five years of service, then it is tax free. However, if the person withdraws without completing five years of service, then in that case, except for a few exceptions (termination of employment and medical etc.), it is taxable.
