Eight must know things for PF account holders; Here’s when and how you can withdraw PF money
Employees’ Provident Fund (EPF) money is meant to meet the needs of old age. This money comes to you when you retire. But sometimes during the job you also need money. Then EPF can come in handy. But you cannot remove it all the time or for every task. Money can be withdrawn from EPF only on certain needs. So we are going to tell you when and how PF money is withdrawn
PF money can be withdrawn only in select circumstances in life, there are some circumstances in which you can withdraw money of entire PF. Let’s look at it.
- Medical Emergency
If any medical emergency comes in the house, like husband, wife, children and parents, then you can withdraw PF money. It is not necessary for how many years you have worked. You can withdraw PF money anytime. You have to provide proof of hospitalization for a period of one month or more. Also you have to give your company or ESI approval certificate. You have to fill Form 31 and give a certificate of illness or any other document with it. For treatment, you can withdraw 6 times your salary or full PF money, whichever is less.
2) To buy a house
If you want to take a flat, you can withdraw PF money. Even for this, your service should be completed for 5 years. You can withdraw PF money up to 36 times of your salary to buy a house. You can also do this only once during your entire service.
3) To repay home loan
If you have taken a home loan and you want to repay it as soon as possible, or if you do not have the money to repay the home loan, then you can also repay your home loan with PF money. To do this, you must complete 10 years of service. You can withdraw PF money up to 36 times of your salary. You can do this only once.
4) To repair the house
You can also withdraw your PF money to get the house repaired, provided that five years of your job have been completed. You can withdraw PF money up to 12 times of your salary. You can do this only once during your entire job.
5) Plot / land
If you want to buy a land or plot and need money for this, then you can withdraw PF money, provided you have completed the job for 5 years. Secondly, this plot should be registered in the name of either you or your wife or both. There should not be any case, claim or dispute on the property. To buy a plot, you can withdraw PF money up to 24 times of your salary, but you can do this only once in your life.
6) For studies or marriage
You can withdraw PF money for the marriage of your children, sister, brother. Apart from this, you can withdraw money from PF for your own and children’s studies too. But the condition is that you have completed the job for 7 years. You have to fill Form 31 from your company. PF can withdraw 50 percent of the total deposits till the date of withdrawal of PF. You can withdraw PF money only three times during your entire job for writing studies.
If you have taken retirement before time, then you can withdraw up to 90% of your total PF balance, provided you are 54 years of age. You can do this only once.
8) On leaving the job
If you lose your job and do not get another job for a month, then you can withdraw 75% of the PF money. If you do not get the job even after two months, then you can also withdraw the remaining 25 percent of the EPF amount.
Tax on withdrawing money from PF?
If you withdraw PF money before 5 years of continuous service, then 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 PF account to a new employee.
How long does it take to withdraw money from PF?
After giving the application, the entire process of withdrawing the money of PF is completed in 3 days. If your PF account and bank account are linked to Aadhaar, then they get the benefit. Money comes to your account in 6-7 days.