The government has made the rules for withdrawing money from PF easy. Under this, EPF members can withdraw by taking care of some things. If they want, they can withdraw money even before the stipulated time, although tax will have to be paid for this.
Rules for withdrawal of PF money
EPF is a type of investment plan designed to meet post-retirement needs, so money should not be withdrawn unless there is a very emergency. You can also make partial withdrawal from EPF to meet some requirements, although for this you have to take care of some things, otherwise you may suffer loss.
Compounding interest is added on the money being deposited in the Employees’ Provident Fund (EPF), so it comes in handy for adding a strong fund in the long run. This is a type of investment plan designed for retirement. If you want to withdraw money before retirement, then you need to know some special rules.
1. If you withdraw PF money within 5 years of opening the account, then it is taxed.
2. To meet short term requirements, partial early withdrawal from EPF is allowed on certain conditions. But to withdraw the full amount, the age of the customer should be at least 58 years.
3. If a person wants to withdraw money at the age of 54, 1 year before retirement, then he can withdraw up to 90 percent of the amount from PF.
4. Similarly, if one wants to use the amount of provident fund after leaving the job, then he is allowed to withdraw up to 75 percent. If he remains unemployed for 1 month and remaining 25 percent can be withdrawn even after the second month of unemployment. This exemption has been given by the government during the corona epidemic.
5. You can also withdraw some part of PF for financial goals like marriage planning, education, construction of house and medical issue.
Withdrawal allowed even for these important works
medical emergency
Any PF member can make a premature withdrawal if there is a medical emergency whether it is for the investor, his/her spouse, parents or children.
New Home
One can also make partial withdrawals from his EPF for construction or purchase of a new house, however, the employee should be working for at least 5 years. In such a situation, you can withdraw 90% of the PF balance. If renovation is to be done, then after 5 years of construction of the house, 12 times the monthly salary of the employee can be withdrawn.
home loan
Those who want to withdraw from EPF for home loan repayment can withdraw 90% of the PF balance for this situation. However, for this, the member should have completed 3 years while working.
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