How Much Percentage of PF can be Withdrawn?

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How Much Percentage of PF can be Withdrawn?

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May 19, 2022

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Asmita Parekh · Answer 1 · 2022-05-20T08:18:59+00:00

Hi Buddy, I have left my job and it was around 1 year that I was unemployed. On the other hand, I was thinking of purchasing an apartment for myself which was of utmost importance to me. Hence, I decided to withdraw my PF. However, I was unaware of how much percentage of PF can be withdrawn? Hence, I started browsing the internet for the same. Also, my father instructed me about the procedures, and regulations for withdrawing PF. Pay your utility bills using credit cards through NoBroker and earn reward points on your card. I would like to share my insights about what percentage of PF can be withdrawn. I would also appreciate it if anyone could provide me with any other relevant information on withdrawing PF. I discovered that in 2021, the Employees' Provident Fund Organisation (EPFO) changed a number of restrictions regulating how much percentage of PF amount can be withdrawn from the Provident Fund (PF) account. The goal of these changes is to make it easier for subscribers who are experiencing financial hardship as a result of the coronavirus outbreak to access their PF money. According to the new guidelines, PF account holders can withdraw up to three months' basic income + dearness allowance, or 75 percent of their net PF or EPF account balance, whichever is less. This amount will be considered a non-refundable deposit. These withdrawal claims can be made through the internet. Online claims must be resolved within three working days, however offline claims can take up to 20 days to resolve. Get stress-free home loan disbursement through NoBroker home loan services. I have provided a tabular chart to highlight the amount of PF that can be withdrawn for various reasons along with its eligibility criterion.

Reasons	Eligibility	Maximum Withdrawal
Housing loan for house construction or addition/site/flat acquisition	Minimum service of 60 months	Up to 36 months of his or her basic salary + DA/ total employee and employer shares + interest/ total house cost
Self-marriage, son/daughter, brother/sister, or children's post-matriculation education	84 months of service minimum	Using up to 50% of the EPF account
A year before to retirement	You must be at least 54 years old.	Up to 90% of his EPF contribution
Medical expenses/natural disasters/physically handicapped equipment purchases/factory closures/power outages in the establishment	There are no minimum service requirements.	Up to six months' worth of basic and DA pay/the entire contribution

EPF contributions come from both the employer and the employee. EPF funds, on the other hand, cannot be withdrawn at any time. I would also like to highlight the rules of PF withdrawal. These rules I learned while withdrawing my PF balance. The 10 significant EPF withdrawal rules are as follows:

Unlike a bank account, money from an EPF account cannot be withdrawn while employed. EPF is a long-term pension savings plan. Only after retirement can the funds be withdrawn
In the event of a medical emergency, home acquisition or building, or higher education, partial withdrawals from EPF accounts are permissible. Depending on the reason, partial withdrawal is subject to restrictions. A partial withdrawal request can be made electronically by the account holder
Despite the fact that the EPF corpus can only be taken after retirement, early retirement is not considered until a person reaches the age of 55. If the person is not less than 54 years old, EPFO authorises a withdrawal of 90% of the EPF corpus one year before retirement
If a person is laid off or retrenchment occurs before retirement, the EPF corpus might be taken
To withdraw funds from the EPF, the subscriber must declare unemployment
EPFO now permits 75 percent of the EPF corpus to be withdrawn after one month of unemployment. After finding new work, the remaining 25% can be transferred to a new EPF account
After two months of unemployment, the prior rule allowed for a 100% EPF withdrawal
Withdrawals from an EPF account are tax-free, but only under specified circumstances. Employees can only get a tax break on their EPF contributions if they make them for five years in a row. If there is a five-year hiatus in contributions to the EPF account, the sum is taxed. The entire EPF amount will thereafter be deemed taxable income for that financial year
On early withdrawals of the EPF corpus, tax is deducted at source. TDS, on the other hand, is not applied if the total amount is less than Rs.50,000
Keep in mind that if an employee submits their PAN with the application, the TDS rate is 10%. Otherwise, it'll be 30% + tax. Form 15H/15G is a declaration form that declares that a person's whole income is not taxable, avoiding TDS
Employees no longer have to wait for their employer's permission to withdraw their EPF funds. If the employee's UAN and Aadhaar are linked, and the employer has accepted it, it can be done directly through the EPFO. You can check your EPF withdrawal status online

These points actually helped me a lot in withdrawing my amount of PF. As I mentioned I wanted to purchase a house for myself, and my total service period was 60 months hence, I was able to withdraw up to 36 months of my basic salary + DA + interest. I hereby conclude my answer on how much percentage of PF can be withdrawn. I hope this helps:) Pay your rent with a credit card with NoBroker and receive guaranteed rewards! Read More: How To Transfer PF Online? Is PF Withdrawal Taxable? How To Withdraw PF Pension?

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