EPF withdrawal before 5 years


#1

I have worked in an organisation for more than 4 years. Now I want to quit. Can I get EPF without paying any tax?


#2

Hi,

You have to complete 5 years in your present organisation in order to withdraw your EPF without taxes. EPFO has listed a number of PF withdrawal rules. They are as follows.

• All withdrawals made before completion of 5 years of continuous service are subject to tax. Withdrawals after completion of 5 years of continuous service are tax-free.
• If in case the employee was terminated or is unemployed as a result of ill-health and so on, withdrawals will not attract tax.
• If the employee makes a withdrawal before the completion of 5 continuous years in the scheme, the principal amount as well as the interest accrued is subject to tax. That said, the amount will be taxable in the current financial year.
• For withdrawals before completion of 5 continuous years towards the scheme, the employee will be taxed 30% of the principal amount and the interest accrued if he/she has not submitted their PAN to the EPFO authorities. If the employee has submitted his/her PAN details to the EPFO authorities, 10% TDS (tax deducted from source) will be applicable.
• Employees have to use the Composite Claims Form on the EPFO website to make a partial withdrawal or a final settlement claim.
• If the employee has seeded his/her Aadhaar card details with their UAN, they can submit the Composite Claims Form to make a withdrawal directly to the EPFO without the requirement of the attestation of their employer. Those who have not seeded their Aadhaar card details with their UAN have to submit the Composite Claims Form with the attestation of their employer to make a withdrawal.

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Cheers,
BB Expert