EPF Withdrawal Update: EPFO i.e. Employee Provident Fund Organization runs EPF account for employees. Both employee and employer contribute regularly in EPF account, due to which a large fund is prepared in the long term.
EPF Withdrawal Update: EPFO i.e. Employee Provident Fund Organization runs EPF account for employees. Both employee and employer contribute regularly in EPF account, due to which a large fund is prepared in the long term. However, many times when employees go to withdraw money from EPF, they get less money than the amount shown in the passbook. What are the reasons for this difference, let us understand in detail.
Why do we get less money on withdrawal?
The amount deposited in EPF passbook always looks more, but when money is withdrawn, less amount comes. The main reason for this is tax i.e. TDS rules. If you have not completed 5 years of your service and you withdraw money, then the government can deduct TDS. If you have a PAN card then 10% TDS is deducted, but if you do not have a PAN card, this rate can reach up to 34.608%. However, no TDS is levied on withdrawal of less than Rs 50,000.
Pension fund and transfer delay
Apart from this, deduction in pension fund or non-transfer of amount from old account to new can also be a reason. Many times due to technical reasons, the balance is not updated and the amount appears less in the passbook.
Rules for withdrawing money
If you are in a job, then you can neither withdraw the PF amount completely nor partially. But if you are unemployed, then first 75% and if you remain unemployed for two months, then 25% of the balance can be withdrawn. However, in this situation also the amount decreases due to tax.
How can you withdraw money from PF?
Before withdrawing money, get the passbook updated and fill all the necessary documents including Form-19, 10C correctly. You can also check your balance through Umang app, missed call or SMS.
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