How many times can you withdraw money from a PF account? Know the rules of EPFO.
Important news for PF account holders. Let us tell you that EPFO rules say that money can be withdrawn from the PF account several times before retirement, but a reason will have to be given for it. If you are buying or constructing a house or land for it, you can withdraw the money just once.
We all know that advance PF withdrawal can be done while on the job. But do we know when and how many times it can be taken out? A Provident Fund (PF) is the accumulated capital of our future, according to which it should be kept as reserve only for retirement.
But what to do when a difficult situation arises? At the same time, a rule for advance withdrawal of PF has been made. Employees Provident Fund Organization (EPFO) helps you completely in this. All you have to do is give the reason for withdrawing the money. Only after this, the withdrawal process starts.
If you lose your job and have no money in hand, this can also be a reason for PF withdrawal. Apart from this, you can withdraw money in advance for marriage, higher education, construction of a house for living, purchase of land for construction of a house, etc. Now it comes to how much money can be withdrawn and how many times the money can be withdrawn. If you open your PF account on the EPFO website, both the company's money and your deposited money are visible there. That means the company and your shares appear together in the passbook.
EPFO rules-
EPFO rules clearly state that the reason you choose to withdraw will decide how much money you will get. If you have chosen unemployment as the reason and have not received a salary for two consecutive months, then you can withdraw whatever money you have deposited in PF. The second reason is a natural disaster. In this, you will get 75 percent plus interest on the total amount deposited in PF. Or 3 months salary plus DA. You will get whichever is less among these two. The same rule applies to the advance withdrawal of PF during the time of COVID-19. PF advance can be withdrawn only once in the name of Covid-19.
The question is whether you can apply to withdraw money from a PF account several times before retirement and how many times you can get the money. EPFO rules say that money can be withdrawn from the PF account several times before retirement, but a reason will have to be given for the same. For example, suppose there is a marriage of a son or daughter in the house, then you can easily withdraw money from PF but not more than 3 times.
When can you withdraw money?
If you want, you can withdraw money 3 times for your son or daughter's education after the 10th. If you are buying or constructing a house or land, you can withdraw the money only once. You can withdraw money from EPF account any number of times for medical emergencies before retirement. There is no restriction in withdrawing money but you should also keep in mind its tax rules.
If you withdraw PF money before completing 5 years of continuous service, TDS will be deducted at the rate of 10 percent. This rate is applicable when PAN is given while withdrawing money. If a PAN number is not given then TDS will be deducted at the rate of 30 percent. If you withdraw PF money after 5 years of continuous service, there will be no tax on it. If an employee transfers his EPF money to the National Pension Scheme or NSC, then he will not have to pay any tax.
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