How many times can you withdraw the money deposited in PF i.e. Provident Fund in a year? The government provides the facility to open provident fund accounts for employed people. 12% of the employee’s salary is deposited in these accounts every month. Additionally, the same amount of money is also deposited into the employee’s account by the company. The government pays interest on this entire amount. Due to this, after a time, a huge amount comes to the employee.
But can money be withdrawn from the PF account at any time or are there some rules for it.
Let us know that Corona What decisions did the government take regarding PF and what are the new rules.
The facilities available during Corona are now closed
Corona will help in overcoming the economic crisis tomorrow and the epidemic. To deal with this, the facility of Covid-19 advance fund was provided by the government. Under which any EPFO member could withdraw money from PF in the form of Covid Advance Fund in case of need. According to the report of Economic Times, this facility was discontinued in December 2023.
20% TDS will be deducted if money is withdrawn before 5 years
Withdrawal from PF account in Budget 2023 There have been other changes regarding. It is said that if the withdrawal amount is less than Rs 50 thousand then the benefit of deduction will not be available on it. Apart from this, now despite PAN being linked to the PF account, if money is withdrawn before 5 years, TDS will be deducted at the rate of 20 percent.
When will TDS not be imposed
According to the Income Tax Act. Tax exemption can be claimed under Section 80C. When a person withdraws money from PF before working for five years in a company, TDS is deducted on that amount. If money is withdrawn from PF after five years of employment, no tax will be charged.
How many times can PF be withdrawn in a year?
EPF members should also keep this in mind. They cannot make advance withdrawal more than three times for marriage and education. For this, the EPF member should have 7 years of membership under the Provident Fund.
