10% tax is deducted if the period of 5 years is not completed, if you withdraw less than 50 thousand rupees then there is no tax.
Many people are facing economic problems due to the Corona epidemic. To overcome this problem, people are withdrawing money from the Employee Provident Fund (EPF / PF). In such a situation, if you are also planning to withdraw money from the PF fund, then it is important to know first of all how much tax you will have to pay on it.
PF Withdrawal Income Tax Rules
There is no income tax liability if the employee completes 5 years of service in a company and withdraws PF. The period of 5 years may also be inclusive of one or more companies. It is not necessary to complete 5 years in the same company. The total duration must be at least 5 years. TDS and tax is deducted at 10% for non-completion of 5 years. If PF withdraws less than Rs 50 thousand from the fund before 5 years of job, then there will be no tax. If you make more than 50 thousand withdrawals, then 10% tax will be levied.
No tax on evacuation due to illness
If the employee has to leave the job before 5 years due to illness or due to the closure of business of the company, even if the employee withdraws PF before 5 years, the tax does not become a liability.
35,445 crores withdrawn in 5 months
The Employees Provident Fund Organization (EPFO) has settled 94.41 lakh provident fund claims for a total of Rs 35,445 crore during the 5 months from April to August in the current financial year.
You can know your PF balance with an SMS
To know the balance of the amount deposited in the PF account through SMS, you have to send the SMS from the registered mobile number itself. EPF provides this facility to transfer the balance through SMS in ten languages. You can get it in English, Hindi, Telugu, Punjabi, Gujarati, Marathi, Kannada, Malayalam, Tamil and Bengali. To know the balance through SMS, the language you want to know with EPFOHO UAN from your registered mobile number 7738299899 has to be sent with the first 3 letters of that language. For example, if you want to receive a message in English, then for this type, EPFOHO UAN ENG has to be typed and send to 7738299899. In this way, SMS for other languages has to be sent. If you do not know the balance message, you can talk to the toll free number 1800118005.
PF can be removed through these easy steps
- To remove PF, the employee must first login to the official website of EPFO https://unifiedportal-mem.epfindia.gov.in/memberinterface/.
- On opening the website, you will need to enter the UAN and password and captcha on the right side. After that click on Sign in.
- On the opened page, you can see the employee profile on the right side of the page. Now click on the ‘Manage’ tab and choose KYC from the drop-down menu.
- On the next page click on the Services Online Services tab and select Form (Form-31,19 and 10C) from the drop-down list. Key details can be seen here.
- Now to verify and enter the last four digits of your bank account on ‘Yes’.
- Select Form No. 31 on the next page. After this you will come here written ‘I want to apply for’, on which you will have to click.
- After this, click on ‘Proceed for online claim’.