EPFO Withdrawal Rules: If you have been in the job for less than 5 years and withdraw money from the PF account in the meantime, according to the rules of the Income Tax Act, you will have to pay income tax on it.
Employee’s Provident Fund Withdrawal Rules: Employee Provident Fund (EPFO) is a long term investment plan. Through this, salaried people secure their old age. EPFO is the flagship scheme of the Employees Provident Fund Organization (EPFO). Every month the company and employees contribute 12 percent to the PF account. This contribution is 12 percent of the basic salary of any employee. This amount is given to the employee along with the interest amount at the time of retirement. However, employees can remove it earlier as per their requirements. Many people in India depend on their PF money.
If you are a salaried person and want to leave your current job, there are tax implications that you need to know. Let us tell you that many types of tax benefits are given to employees on their contribution to PF. If an employee withdraws EPF money before five years, the tax benefits given to him are canceled.
If you have been in the job for less than 5 years and in the meantime withdraw money from the PF account, then according to the rules of Income Tax Act, you will have to pay income tax on it. On the other hand, if you withdraw money from your PAA account for five years, then there is no tax on this amount.
Explain that a period of 5 years can also be inclusive of one or more companies. It is not necessary to complete 5 years in the same company.