EPF Withdrawal During Employment
Money from the EPF account cannot be withdrawn during employment, unlike a bank account.
Long-Term Retirement Savings
EPF is a long-term retirement savings scheme. The money can be withdrawn only after retirement.
Partial Withdrawal for Emergencies
Partial withdrawal from EPF accounts is permitted in emergencies: – Medical emergency – House purchase/construction – Higher education
Limits on Partial Withdrawal
Partial withdrawal subject to limits based on reason. Account holder can request online for partial withdrawal.
Early Retirement Conditions
Early retirement considered after age 55. 90% EPF withdrawal possible 1 year before retirement (age 54+).
Unemployment due to Lock-down
EPF corpus can be withdrawn if unemployed before retirement due to lock-down or retrenchment. Declaration of unemployment required for withdrawal.
New Rule - 75% EPF Withdrawal
New rule: 75% EPF withdrawal after 1 month of unemployment. Remaining 25% can be transferred to new EPF account after gaining new employment.
Old Rule - 100% EPF Withdrawal
Old rule: 100% EPF withdrawal after 2 months of unemployment.
Tax Exemption Conditions
EPF corpus withdrawal exempt from tax under certain conditions. Tax exemption requires 5 continuous years of EPF contribution.
Taxable EPF Amount
EPF amount taxable if no contribution for 5 continuous years. Entire EPF amount taxable income in that financial year.
Tax Deduction at Source (TDS)
TDS on premature EPF withdrawal. 📌 TDS not applicable if amount < Rs.50,000. 📌Applicable TDS rate: 10% with PAN, 30% without PAN.
Form 15H/15G for TDS Avoidance
Form 15H/15G for TDS avoidance. Declares total income not taxable.
Direct EPF Withdrawal
No need for employer approval. Withdraw directly from EPFO if UAN and Aadhaar linked.