The PFE Employees’ Provident Fund Organization (EPFO) is working on a plan to provide bank-like services to customers. According to sources, under the new arrangements, 50% of the total Provident Fund (PF) deposit amount can be withdrawn through an ATM type card.
Union Labor Secretary Sumita Dawra expressed the possibility of starting this service from next year. Union Labor Secretary Dawra on Friday said that under the new system, heirs of deceased EPFO subscribers can also withdraw money from ATMs after settlement of claims through ATMs.
After leaving your job, you will be able to withdraw 75% of your PF money after a month. According to the PF withdrawal rules, if a member loses his job, he can withdraw 75% of the money from the PF account after 1 month. Thanks to this, he can support himself during unemployment. The remaining 25% deposited in PF can be withdrawn two months after leaving the job.
Tax rules relating to PF withdrawal If an employee completes 5 years of service in a company and withdraws the PF, then he is not liable to income tax. The 5-year duration can also be obtained by regrouping one or more companies. It is not necessary to complete 5 years in the same company. The total duration must be at least 5 years. If the employee withdraws more than Rs 50,000 from the PF account before the end of 5 years of service, then he will have to pay 10% TDS. Whereas if you don’t have a PAN card, you will have to pay 30% TDS. However, no TDS is deducted if the employee submits Form 15G/15H.