Tax on PF withdrawal
3 minutes read

Tax on PF withdrawal

Employee Provident Fund (EPF) scheme, the main approach is to provide benefits to the employees at the time of their retirement. The EPF scheme specifies that a nominal amount is deducted from the employees’ salary as a contribution towards the fund. Tax on PF withdrawal is the main concern of the employee who leaves the company early. The changes regarding the Income-tax rules on the EPF withdrawal are discussed below.

Employee Provident Fund Organisation or EPFO can deduct tax at source (TDS) only if an employee falls under these two cases:

  • If the employee has not completed 5 years of his/her continuous service.
  • If the EPF withdrawal amount is more than Rs.50,000. Earlier the limit was Rs.30,000

Tax on PF withdrawalEPF Withdrawal Rules

The government introduces the new Provident Fund (PF) withdrawal rules. They are;

  • Withdrawal restrictions

The whole amount in the EPF cannot be withdrawn till the age of retirement. The PF account consists of the contribution made by the employer, a contribution made by the employee, and interest earned on employer and employee contribution.

 The exception to the new rule 

Female employees are given exemption who is resigning from the services for getting married or due to childbirth or pregnancy. So, they can withdraw the whole EPF Balance.

  • Retirement Age

The retirement age is 58 years. A person can withdraw up to 90% of the PF balance on attaining the age of 57 years.

  • PF Membership and employment

The membership as an employee would not withdraw the full PF balance till the age of retirement.

This completes our post on Tax on PF withdrawal.

If you have any queries regarding this post, kindly drop your queries in the comment section below.

Related: PF online withdrawal procedure

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75 Comments

  • Hi Sir,

    I have few quires related to withdrawal of my EPF and PF amount. Could you please help me with this. I have completed 5 years of service and unemployed since 2 months.
    1. Can I withdraw both EPF and PF?
    2. Do I need to submit 2 separate forms for EPF and PF withdrawal or can this be done in one consolidated form?
    3. Do I need to pay taxes on the withdrawal of EPF and PF? I have completed 5 years of service and claiming more than 50,000.

    • 1. Yes, you can withdraw
      2. Now, withdraw is through ONLINE mode with a single submission
      3. No, TDS will not be deducted if your PAN is updated in UAN portal.

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