New EPF withdrawal rules 2024 – All you need to know
3 min read
EPFO allows withdrawal of 75% of the funds after one month of unemployment and transfer of the remaining 25% to a new EPF account after joining a new job.
If you are doing a job, then obviously you also have an EPF account. In the EPF account, 12 percent of your basic salary is deposited in the EPF. To provide employees easy access to this savings fund in case of any financial emergency, EPFO has amended the PF withdrawal rules. You know that interest is earned on the money deposited in the PF fund and the deposited amount can be withdrawn after retirement.
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But employees or subscribers can also make premature withdrawal which is equal to three months of their basic salary and dearness allowance or 75 percent of the total balance in their PF or EPF account, whichever is less. In such a situation, if you understand the latest rules for withdrawing money, it will be easy for you.
- The employer and employee contribute to the EPF account. However, the money in the EPF account cannot be withdrawn arbitrarily.
- The money deposited in the EPF account can be withdrawn only after retirement. Partial withdrawal can be applied for online and is applicable under emergencies like treatment, higher education, purchase or construction of a residential house.
- EPFO allows withdrawal of 90 per cent of EPF funds 1 year before retirement, provided the person is not less than 54 years of age.
- In case of unemployment before retirement due to retrenchment, EPF funds can be withdrawn.
- EPFO allows withdrawal of 75% of the funds after one month of unemployment and transfer of the remaining 25% to a new EPF account after joining a new job.
- If an employee contributes to the EPF account for five consecutive years, tax exemption is given on withdrawal of EPF funds.
- TDS will be deducted on premature withdrawal of EPF funds, but if the entire amount is less than Rs 50,000, then TDS will not be deducted.
- For premature withdrawal, if PAN is submitted, the TDS deduction will be 10% and if PAN is not submitted, it will be 30% plus tax.
- EPF status can be checked online and if UAN and Aadhaar are linked and the employer has approved it, then it can also be done directly through EPFO. According to bankbazaar, the EPF subscriber has to declare unemployment to withdraw the EPF amount. As per the old rule, 100% EPF withdrawal is allowed after 2 months of unemployment.
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