PF account holders: Employees Provident Fund (EPF) is a retirement scheme. In this, employers and employees contribute every month, so that the employee can manage his expenses after retirement. This scheme is regulated by the Employees Provident Fund Organization (EPFO).

Its purpose is to provide financial stability to the workers. Although this is a retirement investment plan, in which the facility of withdrawal is given after a certain age, but employees can withdraw some part of the deposit earlier to manage important expenses like medical emergency, home loan, marriage or education. Let us know what are the terms and conditions for withdrawal from EPF –

unemployed

If a person is unemployed for at least one month, then he can withdraw 75% of the amount. If a person is unemployed for two months or more, then he can withdraw the entire amount.

Premature withdrawal

Withdrawals made from the Provident Fund within 5 years of opening the account will be taxed. However, if you withdraw less than Rs 50,000, no TDS will be levied. But during this time, if you withdraw more than Rs 50,000, TDS will be levied. If you show your PAN card, then 10% will be charged and if you do not show, then 30% will be charged.

What will happen if you change jobs

When you change jobs, you do not need to immediately transfer your previous PF balance to your new account. The transfer process can start after your Universal Account Number (UAN) is activated and the necessary documents are submitted.

Withdrawal after retirement

According to the EPF Act, the member has to apply for his final settlement claim after retiring at the age of 58 years. If the member has continued service for more than 10 years, then he is also eligible for EPS amount. If the member has not reached the 10-year period at the time of retirement, he can withdraw the entire amount of his EPF as well as EPS. The amount withdrawn from the EPF account after retirement is not taxable.

PF withdrawal to repay home loan

EPF members can use the funds deposited in their account to buy their own house after three years of opening the account. Under paragraph 68-BD in the EPF Scheme, 1952, EPF members can request to withdraw up to 90% of their deposits to build a new house, pay EMIs or make down payment on a home loan.