EPFO News: Planning To Withdraw Money From PF Account? Know How Much Tax Will Have To Be Paid On It
Many people are facing economic problems due to Corona epidemic. To overcome this problem, people are withdrawing money from the Employees Provident Fund (EPF / PF). In such a situation, if you are also thinking of withdrawing money from Provident Fund, then it is important to know first of all how much tax you have to pay on this, 10% tax is deducted if the period of 5 years is not completed. If you withdraw less than 50 thousand, then there is no tax.
PF (Provident Fund) Withdrawal Income Tax Rules
If an employee completes 5 years of service in a company and withdraws PF, there is no income tax liability on him. May consist of one or more companies over a period of 5 years. It is not necessary to complete 5 years in the same company. Total duration should be at least 5 years. 10% TDS and tax is deducted for not completing 5 years. If PF withdrawal less than 50 thousand rupees from Provident fund before 5 years of job, then there will be no tax! If you make more than 50 thousand withdrawals, 10% will be taxed.
No tax on evacuation due to illness
If the employee has to leave the job before 5 years due to illness or due to the closure of the business of the company, even if the employee withdraws the PF (Provident Fund) before 5 years, then tax liability is not created. Employees’ Provident Fund Organization, worth Rs 35,445 crore withdrawn in 5 months, has settled 94.41 lakh provident fund claims for a total of Rs 35,445 crore during the 5 months from April to August in the current financial year.
To know the balance of the amount deposited in the PF account through SMS, you have to send the SMS from the registered mobile number itself.
EPF (Employees’ Provident Fund)
If the employee has to leave the job before 5 years due to illness or due to the closure of the business of the company, even if the employee withdraws the PF (Provident Fund) before 5 years, then tax liability is not created! Employees’ Provident Fund Organization, worth Rs. 35,445 crore withdrawn in 5 months, has settled 94.41 lakh provident fund claims for a total of Rs. 35,445 crore during the 5 months from April to August in the current financial year!
You can know your PF balance by SMS
- To know the balance of the amount deposited in the PF account through SMS, you have to send the SMS from the registered mobile number itself.
- This facility provides balance through SMS in ten languages! You can get it in English, Hindi, Telugu, Punjabi, Gujarati, Marathi, Kannada, Malayalam, Tamil and Bengali.
- To know the balance through SMS, you have to send EPFOHO UAN from your registered mobile number with 7738299899 first 3 letters of the language in which you are asking for information.
- For example, if you want to receive a message in English, type EPFOHO UAN ENG for this type and send it to 7738299899.
- This is how SMS will be for other languages! If you do not know the balance message, you can talk to the toll free number 1800118005.
PF can be extracted through these easy steps.
- To remove PF, the employee must first login to EPFO official website https://unifiedportal-mem.epfindia.gov.in/memberinterface/.
- On opening the website, you have to enter the UAN and password and captcha on the right side. After which click on Sign in.
- On the open page, you can see the employee profile on the right side of the page! Now click on the ‘Manage’ tab and choose KYC from the drop-down menu.
- Click on the Services Online Services tab on the next page! And choose the form (Form-31,19 and 10C) from the drop-down list.
- You can see member details here! Now verify and enter the last four digits of your bank account on Yes.
- Choose form number 31 on the next page! After this, you will see ‘I want to apply for’ here, which you will have to click on! Next, click ‘Proceed to Claim Online’.
(With inputs from srbpost.com)