PF Withdrawal: Every month 12% of the employee’s salary is deposited in the provident fund account. Additionally, the same amount of money is also deposited into the employee’s account by the company. The government pays interest on this entire amount.
PF Withdrawal: How many times can you withdraw the money deposited in PF i.e. Provident Fund in a year? The government provides the facility to open provident fund accounts for employed people. 12% of the employee’s salary is deposited in these accounts every month. Additionally, the same amount of money is also deposited into the employee’s account by the company. The government pays interest on this entire amount. Due to this, after a time the employee gets a huge amount of money.
But can money be withdrawn from PF account anytime or are there some rules for it?
Let us know what decisions the government had taken regarding PF in Corona and what are the new rules.
The facility available during Corona is now closed
The facility of Covid-19 Advance Fund was provided by the government to overcome the economic crisis in Corona yesterday and to deal with the epidemic. Under which any EPFO member could withdraw money from PF in the form of Covid Advance Fund in case of need. According to the report of Economic Times, this facility was closed in December 2023.
If money is withdrawn before 5 years, 20% TDS will be deducted.
There are more changes in Budget 2023 regarding withdrawal from PF account. It has been said that if the withdrawal amount is less than Rs 50 thousand then the benefit of deduction will not be available on it. Apart from this, now despite PAN being linked to the PF account, if money is withdrawn before 5 years, TDS will be deducted at the rate of 20 percent.
When will TDS not be charged?
Tax exemption can be claimed under Section 80C of the Income Tax Act. When a person withdraws money from PF before working for five years in a company, TDS is deducted on that amount. If money is withdrawn from PF after five years of employment, no tax will be charged.
How many times can you withdraw PF in a year?
EPF members also have to keep in mind that they cannot make advance withdrawals more than three times for marriage and education. For this, the EPF member should have 7 years of membership under the Provident Fund.
Read this: Section 80C: You can save income tax with these 15 options under Section 80C, know how
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