PF or EPF Withdrawal Rules 2023

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Money from the EPF account cannot be withdrawn during employment, unlike a bank account.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 The money can be withdrawn only after retirement.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EPF corpus can be withdrawn if unemployed before retirement due to lock-down or retrenchment.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.