Provident Fund Latest Update: To withdraw money, the EPFO subscribers need to have an active Universal Account Number (UAN).
Provident Fund New Guidelines: Along with offering good interest rate, the Employees’ Provident Fund Organisation (EPFO), which regulates Employees Provident Funds (EPF), gives the subscribers the option of early withdrawal of money from their PF corpus under certain circumstances. The employees who are looking to withdraw specific amount from their PF account should know rules about withdrawing provident fund money.
What to do for EPF withdrawals: To withdraw money, the EPFO subscribers need to have an active Universal Account Number (UAN), and the mobile number used for activating the UAN number should also be working. Moreover, the UAN number should have KYC details like Aadhaar number, PAN number and bank details.
Is EPF withdrawal taxable? The EPFO subscribers must know that withdrawing EPF money can be taxable if you want the amount before completion of five years term. However, if you withdraw money after five years, it will not attract income tax. Even early withdrawals can be out of the tax ambit if the money is used for emergency purposes.
On the other side, withdrawal of PF money can attract tax if the PF account has not registered any new contributions for five straight years. In such a case, the entire PF amount is considered taxable for that financial year.
When EPF claim getting rejected? Many times, the PF claim can be rejected for reasons including the non-updation of bank account number and IFSC code on the EPFO portal. Apart from this, the incomplete KYC details and unclear cheque can also lead to PF claim getting rejected.
