Thursday, March 28, 2024
HomePersonal FinanceIncome tax rules on PF withdrawal - TDS will be charged if...

Income tax rules on PF withdrawal – TDS will be charged if you withdraw money from EPF account before 5 years

EPF Tax Rules- If the amount is withdrawn from the EPF account before 5 years of continuous employment, then the income tax will have to be paid according to the existing income slab.

If you need money during Kovid-19, then you can use your EPF account. Employee Provident Fund (EPF / PF) accounts can be used to fulfill their needs by withdrawing money at such times. Often people feel that it is difficult to withdraw money from EPF, but it is not so. PF money can be withdrawn very easily. But, one has to keep in mind what the rules are for this. For example, if you are withdrawing money before 5 years, then you will have to pay Income Tax (EPF Tax Rules). This is the rule of EPFO. Apart from this, the rules of evacuation are different for different reasons.




Tax on withdrawal of money from EPF account?
EPF account is like a savings account, where you deposit money and can withdraw it if needed. But this is different from a savings account. Because, there are some conditions to withdraw money here. If the amount is withdrawn from the EPF account before 5 years of continuous employment, then the Income Tax (EPF Tax Rules) will have to be paid. Income tax will have to be paid according to your existing income slab.

What are EPF Tax rules?
If the employee completes 5 years while working and withdraws PF, then there is no liability for income tax on him. The period of 5 years can also be inclusive of one or more companies. It is not necessary to complete 5 years in the same company. However, TDS and tax is levied at the rate of 10 per cent on the withdrawn money if the 5-year period is not completed. If the amount is 50 thousand or more and the duration is less than five years, TDS can be saved by submitting Form 15G or 15H. In case of not having PAN card, 30% TDS will have to be paid.

75% of the money can be withdrawn after 1 month on leaving the job
According to the rules of EPFO, if a member’s job is missed, he can withdraw up to 75 percent money from the PF account after 1 month. EPFO believes that it can fulfill its needs during unemployment. The remaining amount in the PF account i.e. 25 per cent can be withdrawn after two months.

Under which conditions can PF money be withdrawn
The EPF account holder can withdraw the entire amount of EPF (EPF Withdrawal) for his or her family’s treatment. In this situation, EPF money can be withdrawn at any time. At the same time, in case of education, one has to apply from his employer under Form-31. PF can withdraw 50% of the total deposits till the date of withdrawal of PF. Apart from this, for the home loan payment, the account holder gets a discount of 90% of the total deposit amount. At the same time, this limit has been kept 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 54 ie pre-retirement, but this withdrawal will happen only once.

Parvesh Maurya
Parvesh Maurya
Parvesh Maurya, has 5 years of experience in writing Finance Content, Entertainment news, Cricket and more. He has done BA in English. He loves to Play Sports and read books in free time. In case of any complain or feedback, please contact me @ informalnewz@gmail.com
RELATED ARTICLES
- Advertisment -

Most Popular

Recent Comments