Employee Provident Fund Organization (EPFO) has the advantage of online service to withdraw provident funds (EPF Withdrawal). More than 6.5 crore account holders are getting the benefit of online service. According to EPFO, the entire process from EPF transfer to PF withdrawal is completed in 3 days after application processing. But, the benefit of this service is available only to those people, whose EPF and bank account is linked to the Aadhaar number. The rules for partial withdrawal and full and final settlement are different from EPF. Let us know in which circumstances the complete settlement of EPF takes place?
When can you withdraw all the money from PF
EPF amount can be withdrawn in case of emergency (EPF Withdrawal). In 7 circumstances you can withdraw PF deposit. In some circumstances you can withdraw the entire part of EPF and in some, a certain portion of the total money of EPF is withdrawn. What are these 7 circumstances in which EPF amount can be withdrawn?
1- Medical treatment
– You can also remove PF for the treatment of yourself, wife, children or parents.
– EPF Withdrawal can be done at any time in this situation. This does not necessarily mean what is your service history.
– Proof of hospitalization has to be given for a month or more.
– Approval leave certificate from the employer has to be given.
– The account holder has to give a certificate approved from their employer or ESI. Declaration in this certificate is that anyone who needs medical treatment cannot be provided ESI facility or does not get ESI facility.
– Along with applying under Form 31, a certificate of illness or a document, from which the veracity can be checked.
For medical treatment, you can withdraw 6 times your salary or the entire PF money, whichever is less.
2- Education / marriage-
– EPF amount can be withdrawn for the marriage of his or her siblings or their children.
– You can withdraw the amount of PF for your studies or even for children’s studies.
– For this, there should be a job of at least 7 years.
– In case of education, you have to apply under Form-31 from your employer. You can withdraw 50 percent of the total deposits till the date of withdrawal of PF.
– PF can be used for education only 3 times in its entire service history.
3- To buy a plot
– Provident fund money can be withdrawn to buy a plot. But for this, it is necessary to complete 5 years of your service.
– The plot should be registered in the name of you, your wife or both.
– The plot or property should not be entangled in any kind of dispute and no legal action is being taken on it.
– To buy a plot, any person can withdraw EPF money up to a maximum of 24 times his salary.
– In this type of situation, you can withdraw EPF money only once in the total time of your job.
4- House Build or Flat
In such a situation it is necessary to complete 5 years of your job. Under this, any person can withdraw EPF money up to a maximum of 36 times of his salary. For this, PF money can be used only once during the tenure of your job.
5- Repayment of home loan
For this, your job should be 10 years. Under this, any person can withdraw PF money up to 36 times of his salary. For this, PF balance can be used only once during the time of your job.
6- House renovation
In this case, your job should be completed for at least 5 years. Any person can withdraw PF money up to a maximum of 12 times of his salary. EPF balance can be used only once during the time of your job.
7- Pre-retirement
You must be 54 years old. In this situation, you can withdraw up to 90 percent of the total EPF balance, but this withdrawal can be done only once.
EPF withdrawal is taxable or not?
If you withdraw the provident fund before 5 years of continuous service, it will be taxable. Continuous service here does not mean that the same institution should be in service for 5 years. You can change service and join any organization. You can transfer your EPF account with a new employee.
