Employees' Provident Fund (EPFO) is an investment fund, which is formed by the contribution of the employee, company and government. All job professionals deposit a part of their salary in this PF account every month, while the company also contributes to it. This fund provides financial security to the employees in the future. When employees retire, a good amount is deposited in their PF account.

Many people apply in advance to withdraw money from the PF account. For this, they have to give the reason for withdrawal. EPF account holders can make a maximum of three advance withdrawals for marriage and education in a year. For this, the EPF member must have a membership of 7 years under the Provident Fund. By knowing the rules for withdrawing PF money, members can properly meet their needs. To know in detail, information about the withdrawal rules of EPF is necessary.

Money can be withdrawn for treatment-

For the treatment of employee in case of illness, employee's contribution with interest or six times the monthly salary can be withdrawn. PF account holders can withdraw up to Rs 1 lakh from their account. Under this, employees can withdraw money from their PF account for their own treatment, treatment of wife, children and parents. There is no minimum service period to withdraw it.

Repair of old house-

Employees can also withdraw money from their PF account for the repair of old house. The condition here is that the house should be in the joint name of the employee, wife or both. For this, at least five years of service is necessary. For this, 12 times the salary can be withdrawn.

Home loan payment-

If the house is in his name to repay the home loan dues, then money can be withdrawn from the PF account. For this, employees can withdraw up to 90 percent of the amount from their PF account. To withdraw this amount, it is necessary to have at least 3 years of service.

For buying house-land or house construction-

Salaried employees can withdraw money from their PF account to buy a house, buy land to build a house, or build a house. The condition in this is that the property should be in the name of the employee, the employee's wife, or the joint name of the husband and wife. At least five years of service is required for this.

For marriage-

Apart from this, salaried employees can withdraw money from their PF account for marriage. At least seven years of service is required for this. Salaried employees can withdraw money for their marriage, daughter, sister, brother, or child's marriage.

On losing the job-

Apart from this, if a PF account holder employee loses his job, then in such a situation he can withdraw up to 75 percent of the amount from his PF account. The convenience in this is that in case of unemployment for more than two months, he can also withdraw the remaining 25 percent of the money.

On retirement-

A PF account holder employee can withdraw the entire amount deposited in the provident fund at the time of retirement on completion of 58 years of age. In such a situation, he can withdraw 90 percent of the amount. On completing 10 years of service, the employee becomes entitled to a pension after retirement. Withdrawal of money deposited in EPF account is completely tax-free, but tax has to be paid on the interest earned after retirement.

Tax on withdrawal of money from PF-

An employee who withdraws money from his PF account before completing his five years of service will be eligible for a deduction of TDS. If PAN is not provided, 34.608% TDS will be deducted, while 20% TDS will be deducted on the amount withdrawn from the account linked to PAN. If the withdrawal amount is more than 50,000, tax exemption can be claimed under section 80C of the Income Tax Act.

Documents required for withdrawal from the PF account

- UAN (Universal Account Number) is a mandatory document. The employee can get it from the company.

- Bank account information should be given clearly with the name as per the EPF account.

- The bank account should be in the name of the EPF account holder as the money cannot be transferred to a third party if the holder is alive.

- Personal information like the father's name and date of birth should match with the identity proof.

Disclaimer: This content has been sourced and edited from Hr Breaking. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.