PF Withdrawal: The days of waiting are over, now PF money will come in the bank account easily
It has become even easier to withdraw up to Rs 1 lakh from the Provident Fund (PF) account for expenses such as education, illness, house building or marriage. The government claims that such small claims will be transferred directly to the bank account within 72 hours (three days). According to the EPFO, 99% of the applications for PF withdrawal are coming through online mode, making the process faster and transparent. Out of 68.96 lakh claims made in the financial year 2024-25, 50% of the claims were settled within 72 hours. The government’s next target is to settle all claims up to Rs 1 lakh in 72 hours in the financial year 2025-26. 90% of the claims above Rs 1 lakh are also being settled within 20 days.
At present, EPFO has 7.37 crore active members. The data in the accounts opened after 2012 is completely digital, so the claims related to these accounts are being settled quickly. At the same time, there is some delay in the process of data verification in accounts before 2012 due to its lengthy process. The Employees Provident Fund Organization has appealed to the people not to take the help of any agent or middleman for PF related work, but to directly
When can money be withdrawn
According to the rules of EPFO, money can be withdrawn from the PF account even before retirement in some circumstances. You can withdraw money from PF for marriage. For this, you need to be a member of EPF for at least 7 years. You can also withdraw money from PF for children’s education. For this also 7 years of membership is necessary. Even if you want to buy, build or repair a house, money can be withdrawn from the PF account. For this, at least 5 years of EPF membership is necessary. Money can be withdrawn at any time for treatment.
Tax rules on PF withdrawal
If an employee completes 5 years of service in a company and withdraws PF, then there is no income tax liability on him. The period of 5 years can also be combined with one or more companies. It is not necessary to complete 5 years in a single company. If an employee withdraws more than Rs 50,000 from his PF account before completing 5 years in the job, then he will have to pay 10% TDS. On the other hand, if you do not have a PAN card, then you will have to pay 30% TDS. However, if the employee submits Form 15G/15H, then no TDS is deducted.
