The information about the amount deposited every month in the Employees' Provident Fund (EPF) account is visible in the passbook. But when an employee goes to withdraw money, many times he gets less money than expected, why does this happen? We all think this, however there are many reasons for this. In this news, we will explain in detail the reasons due to which there is a difference between the amount shown in EPF and the amount withdrawn and how to avoid it.

EPFO Employees' Provident Fund Organization (EPFO) is considered an important savings scheme. This scheme works to provide financial security to the employees. This safety from money is especially best after retirement. Both the employee and the employer contribute to this scheme, due to which a strong fund is created in the future. By the way, the fund of its passbook and the fund for withdrawal are often different.

Whenever we check our balance in the EPF passbook, the amount always appears to be more. But when we go to withdraw it, the amount changes to something else. Actually, many times we get less funds at the time of withdrawal. There are some reasons for getting less amount on withdrawal and some amount in the passbook.

The reason for getting less amount on withdrawal even after having more money in the EPF passbook is especially related to tax (TDS) rules. Although it is easy to withdraw money from EPF, but withdrawing before 5 years can cause a tax shock. Suppose if you have not completed 5 years of service and withdraw money, then the government can levy TDS i.e. Tax Deducted at Source. This TDS is 10% if you have a PAN card, but it can reach up to 34.608% if you do not have a PAN card. Also, there is no TDS on withdrawal of less than Rs 50,000. Apart from this, non-transfer of some amount or deduction of pension fund can also be the reason. Therefore, it is important to understand the rules at the time of withdrawal.

The rules and conditions regarding withdrawal related to EPF are very clear. If you are in job, then the amount of PF can neither be withdrawn completely nor partially. But in case of unemployment, you can first withdraw 75% of the amount and if you remain unemployed for more than two months, then the remaining 25% can also be withdrawn. But even in this, the money gets reduced in withdrawal after adding tax etc.

10% TDS is deducted on withdrawing money before 5 years. Now let's understand the calculation. Suppose out of 1 lakh you will get only 90,000 rupees. The remaining 10 thousand are deducted as your tax. Also, get the passbook updated before withdrawal, it is important to fill Form 19, 10C and other necessary documents correctly.

If you see less amount deposited in your EPF account, do not panic. Sometimes due to technical reasons the balance is not updated and the amount appears less. In such a situation, you can use Umang app, missed call service or SMS to check EPF balance. (Note: The news is based on general information only.