Provident Fund Account is a method of saving for privately employed persons. The money placed in this fund helps the public through hard times. The government pays interest on a portion of the salaried population’s basic wage that is placed in the PF fund each year. For the current fiscal year, the government set an interest rate of 8.1%. When you need it, you can quickly withdraw the funds in your PF account. EPFO members may withdraw money from the fund as a marriage advance.
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Withdrawal is possible in the case of marriage
The recent PF withdrawal regulations additionally let an account holder take out money from the PF account of an employee to cover wedding-related costs.
The bride and groom must be either the person in question or the account holder’s son, daughter, brother, or sister. Nevertheless, this provision cannot be used until 7 years of PF contributions have been made.
How much amount can be withdrawn?
The main question arises that how much employees can withdraw from their PF account. Members may withdraw 50% of the total amount put in their fund, including interest, according to EPFO.
However, the criterion for this is that the provident fund should have a membership of seven years. Moreover, advance withdrawals for school and marriage are limited to three times each. You can conveniently withdraw PF funds while at home. The EPFO states that you can only withdraw money online after 72 hours.
TDS on leaving the PF
In the Union Budget for the fiscal year 2023–2024, the government said that TDS on EPF withdrawals would be reduced from 30% to 20%. Some account holders, whose PAN card is not updated in their PF account, will profit from this notification. Before now, if someone’s PAN card is not updated in the records of EPFO, then they will have to pay TDS at the rate of 30 per cent on withdrawal of money, but now instead they will have to pay 20 per cent TDS. Explain that TDS is applied to any money a PF account user withdraws from the account within 5 years.
