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EPFO New Rule: The Employees Provident Fund Organization provides employees the facility to withdraw money for different needs! Let us tell you all that the main objective of the Employees Provident Fund Scheme is to financially secure the lives of workers employed in the organized sector after retirement through assured retirement fund and pension! But employees can withdraw money partially or fully from their Employees Provident Fund account even before the pension scheme matures!
But recently the Employees' Provident Fund Organization has changed the withdrawal rules! After this, the tax burden on employees has increased! So let's know what new rule the Employees' Provident Fund Organization has implemented! And what will be its effect on the employees, so let's know in detail….
New EPF Withdrawal Rules 2024
Under normal circumstances, if you continue doing a regular job without any break or gap, you cannot withdraw provident fund before retirement. But partial withdrawal of funds is allowed under certain circumstances.
Such as medical emergency, higher education and buying or constructing a house etc. If an employee loses his job, he can withdraw 75% of his EPF after being unemployed for one month and the full 100% after two months! But for this the employee will have to inform about his unemployment!
When will you have to pay 30% tax on withdrawal
For partial or full tax-free withdrawal of PF funds, it is mandatory that the PF subscriber has completed 5 years of contribution under the Employees' Provident Fund Organization scheme. But if the withdrawal amount is less than Rs 50,000, no tax has to be paid.
If the amount withdrawn from the Employees' Provident Fund within five years of opening the account is more than Rs 50,000, the Employees' Provident Fund subscriber has to pay TDS of 10%, provided he has a PAN card. Without a PAN, this tax liability goes up to 30%.