PF withdrawal tax rules: The government has kept this withdrawal completely tax free. However, the withdrawal limit has been fixed.
Right now, up to 75 percent of the funds can be withdrawn from the fund.
PF withdrawal tax rules: The new wave of Corona is more dangerous and contagious than expected. Now on a daily basis, 3 lakh new cases are coming up. Lockdown has been announced in many states and it is possible that other states may also move in this direction. In such a situation, the factory, industry, business has become dilapidated and the problem of unemployment is starting to get dire. In this difficult time people use their provident fund.
Last year, the government gave permission to those affected by the Corona epidemic to withdraw money from the Provident Fund. The rules have been made easy for this and EPFO is also doing the work of disbursement very fast. Under the new rule, if a corona is affected by the crisis, then it can use its PF fund. He can withdraw up to 75 percent of his funds. However, it cannot be more than three months basic salary and dearness allowance. What is less in both can be withdrawn.
Currently such withdrawal is tax free
The government has asked the EPFO to process this claim within three days and the PF department is also very cautious about it. In such a situation, if you also want to do this kind of withdrawal, then information about tax rules is important. The government has kept this withdrawal completely tax free at the moment.
Tax rules completely different under normal circumstances
Under normal circumstances, if you withdraw funds from EPFO, then the tax rules are different. This fund can be used for things like buying a house, marriage of children, studies, marriage. If you withdraw after five years, then it is completely tax free. If withdrawals before five years, it is taxable.
Avoid using this fund
If withdrawals from the fund before 5 years, if the withdrawal amount is more than 50 thousand, then TDS of 10 percent is deducted. If PAN information is not available, TDS will be deducted at the rate of 30 per cent. If the withdrawal amount is less than 50 thousand then TDS will not be deducted. Experts have always been advised that this is a retirement fund and should not be used at all. When you have no choice, then think about it.
Also read, invest in this scheme of Post Office 150 rupees a day, you will get around 15 lakhs on maturity
Also read, deposit 100 rupees daily in this scheme and get 1.15 crore on maturity, 20 thousand monthly pension will also be received in old age