If you have never withdrawn money from your EPFO account, then the money received after retirement remains tax free. Also, after completing 10 years of service, you also become entitled to pension.
EPFO:
It is important to ensure a better future after retirement. Employees’ Provident Fund ie EPF is a great way to do this. There are many benefits of investing in EPF or PF. People make many types of investments for retirement, but investing in EPFO is a very safe and profitable investment. The biggest advantage in this is that the benefit of tax exemption is available under section 80C. Withdrawal of PF is not taxed, but it may be taxed in some situations. For example, if you withdraw money from the account before 5 years, income tax has to be paid.
How much tax on withdrawal of money from PF
PF is like a savings account, you can withdraw money from here if needed. But it is different from savings account in some respects, because there are some rules for withdrawing money from here. If you withdraw money from here before 5 years of service, then you will have to pay tax according to the current income tax slab.
What are the rules regarding tax?
If the PF subscriber has completed 5 years of service and now he withdraws the money, then there is no income tax liability on it. It is not necessary that this period of 5 years has been completed in the same company, this period can also be done by combining different companies. But it is necessary to complete the duration of 5 years. If you withdraw money before 5 years, then 10% TDS is applicable on it. If the amount is 50 thousand or more and the period is less than 5 years, then TDS can be saved by submitting Form 15G or 15H. TDS up to 30% is deducted even in the absence of PAN card.
Money can be withdrawn in these conditions
A PF subscriber can withdraw the entire amount at any time for the treatment of himself or the family. Apart from this, it is also used for home loan payment for education. For marriage, this limit has been kept at 50%.
