PF Withdrawal Relief: Key Cases Where TDS Is Not Applicable On EPF Withdrawals

PF Withdrawal Relief: Tax-free withdrawals are permitted, provided certain regulatory conditions are met

For those withdrawing their PF after less than five years of service, tax deduction at source applies if the withdrawal amount exceeds Rs 50,000.

Source : PTI

PF Withdrawal Relief: Provident Fund (PF) is a popular and safe investment tool for lakhs of working professionals, providing long-term savings for retirement. The Employees' Provident Fund (EPF) allows contributors to withdraw funds at the time of retirement, resignation, or in cases of emergency. However, in the event of resignation (but not retirement), EPFO members must wait for a two-month period before they can access their PF funds. Tax-free withdrawals are permitted, provided certain regulatory conditions are met.

For those withdrawing their PF after less than five years of service, tax deduction at source (TDS) applies if the withdrawal amount exceeds Rs 50,000. The TDS rates depend on the submission of PAN and Form 15G/15H:

With PAN submission:

If Form 15G/15H is submitted, no TDS is applicable.

Without Form 15G/15H, TDS is deducted at 10 per cent.

Without PAN submission:

TDS is deducted at the maximum marginal rate of 34.606 per cent.

No TDS is deducted in the following cases:

Transfer of funds from one PF account to another.

Payment of advance.

Termination of service due to reasons beyond the employee’s control, such as illness, business closure, or project completion.

Additionally, no TDS is applicable in the following situations:

Withdrawal after five years of continuous service.

PF withdrawal amounts less than Rs 30,000, even with less than five years of service.

Withdrawal amounts equal to or greater than Rs 30,000 with less than five years of service, if the member submits Form 15G/15H along with their PAN.

The EPFO continues to offer financial security to its members while ensuring compliance with tax regulations for withdrawals.

Required Documents for EPF Withdrawal

The documents you need for EPF withdrawal vary based on the reason for your claim: Here's you can check the claim form online.

To view types of claim forms click here.

• Buying a House: Declaration and property registration certificate.
• Loan Repayment: Certificate of outstanding principal and interest from the lending agency.
• Cash Advances: Certificate issued by your current employer.
• Medical Reasons: Certificates from both your employer and a doctor.
• Marriage: Declaration submitted with Claim Form 31.
• Physical Disability Treatment: Certificate from the consulting doctor.
• Pre-Retirement Withdrawal: Declaration by the EPF member.
• Education of children: Up to 50 per cent of their total EPF contributions to cover higher education expenses for themselves or their children after class 10. However, this withdrawal is permitted only after a minimum of 7 years of contributions to the EPF account.