Provident Fund is an important safe investment option for millions of working people in India, which provides long-term savings for retirement. The scheme is operated by the Employees Provident Fund Organization and is especially beneficial for their employees. Who want financial security during their job and after retirement.
The rules of TDS on PF withdrawal are quite strict. Withdrawals are made after less than 5 years of service and if the amount is more than Rs 50000 the following TDS rates are applicable.
I submitted – If Form 15G/15H is submitted then no TDS is deducted, without form TDS is deducted at the rate of 10%.
Without PAN – TDS is deducted at the ceiling rate of 34.606%.
No TDS is deducted in special circumstances such as transfer of PPF account to another, advance payment or termination of service for reasons beyond the control of the employee.
The EPF process involves required documentation.
Loan Repayment: Certificate of outstanding principal and interest from the lending agency.
Cash Advance: Certificate issued by your current employer.
Children’s education: After class 10, you can withdraw up to 50% of the contribution for higher education of yourself or your children.
For medical reasons: Certificate from both the employer and the doctor.
Buying a House: Declaration and Property Registration Certificate.
Marriage: Declaration with Claim Form 31.
Physical Disability Treatment: Certificate from consulting physician.
Pre-Retirement Withdrawal: Declaration by EPF member.
The PF withdrawal process is extremely convenient and is a testament to EPFO’s continuous efforts for financial security. Apart from this, this system helps the employees to access their deposits in different circumstances, thus maintaining the stability of their financial condition.
