New Delhi. For the jobber, the money of PF i.e. Provident Fund means a lot. People never withdraw that money without force. But if the job is missed due to some reason, then after some time, you can withdraw PF money. However, few people know about the rules related to withdrawal of money. In such a situation, they have to face many troubles. That is why today we are giving you information about a rule related to withdrawal of PF money. Let us tell you that if an employee withdraws his PF before the period of 5 years, then he has to pay tax while withdrawing EPF. In case of job change, the EPF of the employee will be transferred to another employer. In this case, while calculating the continuous period of the employee, the period of the new employer will also be added.
If you stayed in the job for less than five years and in the meantime withdraw money from the PF account, then according to the rules of Income Tax Law, you will have to pay income tax on it.
On these occasions, you do not have to pay tax on withdrawal of funds from PF
>> If the job has been lost due to poor health of the employee.
>> The employer (company) has merged the business.
This is the rule for withdrawal of PF money if there is no job, according to the rules of EPF, a member can withdraw 75% of the total amount deposited during the job after one month of leaving the job. If the person remains unemployed for more than two months, then he can withdraw the entire amount from the PF account.
>> According to income tax law, withdrawal of money from EPF account before five years is taxed. You should work with one employer (company) for five years or with many employers. If you withdraw money after contributing to EPF for five years, then no tax will be paid on this amount.>> Income tax has to be paid for withdrawing money from PF account before five years. Income tax on this amount is to be paid according to your existing slab.
>> In the year in which you have contributed (deposited) to the PF account, the tax has to be paid according to the tax slab applicable to your total income.
Understand this- Suppose that you deposited the amount in the EPF in the years 2014-15 and 2016-17. After this, in the year 2017-18, you left the job and in the same year you decided to withdraw the amount deposited in the PF account.
In this way, you will have to pay tax in the year 2017-18 on withdrawing money from your PF account. In this year, your income was taxed in the year 2014-15 and in the year 2016-17, accordingly you will have to pay tax after withdrawal of funds this year.
Read More here