EPFO allows withdrawal of 75% of the fund after one month of unemployment and transfer of the remaining 25% to a new EPF account after a new job.
If you are working, then obviously you also have an EPF account. In the EPF account, 12 percent of your basic salary is deposited in EPF. To provide employees easy access to this savings fund in case of any financial emergency, EPFO ​​has amended the PF withdrawal rules. You know that interest is earned on the money deposited in the PF fund and the deposited amount can be withdrawn after retirement. But employees or subscribers can also make premature withdrawal which is equal to three months of their basic salary and dearness allowance or 75 percent of the total balance in their PF or EPF account, whichever is less. In such a situation, if you understand the latest rules for withdrawing money, it will be easy for you.
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- The employer and employee contribute to the EPF account. However, the money present in the EPF account cannot be withdrawn arbitrarily.
- The money deposited in the EPF account can be withdrawn only after retirement. Partial withdrawal can be applied for online and is applicable under emergencies like treatment, higher education, purchase or construction of a residential house.
- EPFO allows withdrawal of 90 per cent of the EPF funds 1 year before retirement, provided the age of the individual is not less than 54 years.
- In case of unemployment before retirement due to retrenchment, EPF funds can be withdrawn.
- EPFO allows withdrawal of 75% of the funds after one month of unemployment and transfer of the remaining 25% to a new EPF account after a new job.
- If an employee contributes to the EPF account for five consecutive years, then tax exemption is given on withdrawal of EPF funds.
- TDS will be deducted on premature withdrawal of EPF funds, but if the entire amount is less than Rs 50,000, then TDS will not be deducted.
- For premature withdrawal, if PAN is submitted, the TDS deduction will be 10% and if PAN is not submitted, it will be 30% plus taxes.
EPF status can be checked online and can also be done directly through EPFO ​​if UAN and Aadhaar are linked and the employer has approved it. According to bankbazaar, the EPF subscriber has to declare unemployment to withdraw the EPF amount. As per the old rule, 100% EPF withdrawal is allowed after 2 months of unemployment.
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