There is big news for government employees. Especially for those who have recently lost their jobs, there is big news. Now the EPFO has implemented a new rule. If an employee loses his job before retirement, he can withdraw 75 percent of his total deposits from the Employees Provident Fund Organization (EPFO) after one month. If unemployment persists for two months, he can withdraw his entire amount. On getting a new job, the remaining funds can be transferred to the new EPFO account.
EPFO’s new rule
The EPFO has made changes in the withdrawal rules in this regard, which has made the withdrawal process more simple.A salaried person deposits a part of his salary in EPFO, which matures after retirement. However, if required, a partial amount can be withdrawn from time to time. Now, under the new rules, any member can apply online for his deposit. There is a provision for fund withdrawal for education, home purchase or construction, marriage, or medical expenses.
90% withdrawal facility up to one year before retirement
According to the new rules, any employee can withdraw up to 90 percent of his total deposit amount up to one year before retirement. For this, the minimum age of the member should be 54 years. This provision is beneficial for those who are approaching retirement and need immediate funds.
Provision of tax benefits
If an employee contributes to EPF for five years, then he can get the benefit of tax exemption at the time of withdrawal. TDS (tax deducted at source) will also be applicable on maturity. However, if the withdrawal is less than Rs 50,000, TDS will not be deducted. 10 percent TDS will be deducted on submission of PAN card, while this deduction will be 30 percent if there is no PAN card.
Online Application Process
EPFO members can use the EPF portal or UMANG app for withdrawal of their funds. After submitting the application, the amount is directly transferred to the bank account if approved by the employer. Along with this, members can also check the status of their application online, which keeps the process completely transparent.