Here are some key rules to remember when withdrawing from your Employee Provident Fund (EPF):
1. Employment Status
You cannot fully withdraw your EPF balance while you are still employed.
However, partial withdrawals (non-refundable advances) are allowed for specific purposes such as medical treatment, higher education, marriage, or house construction.
2. Unemployment
If you’ve been unemployed for at least one month, you can withdraw up to 75% of your EPF balance.
If your unemployment continues for two months or more, you become eligible to withdraw the entire balance.
3. Tax Deduction (TDS)
TDS rules on EPF withdrawals depend on your service duration, withdrawal amount, and documentation:
- No TDS will be deducted if:
- You have completed 5 years of continuous service
- The withdrawal amount is less than Rs. 30,000
- The withdrawal is due to ill health, business closure, project completion, or reasons beyond your control
- You submit Form 15G or 15H along with PAN, even if withdrawing Rs. 30,000 or more (with less than 5 years of service)
- TDS will be deducted in the following cases:
- Withdrawal is Rs. 30,000 or more, service is less than 5 years, and:
- 10% TDS if PAN is submitted but Form 15G/15H is not
- 34.608% TDS if PAN is not submitted
4. Premature Withdrawal
If you withdraw your EPF corpus before completing 5 years of service, it may be taxable, and TDS may apply as per the rules above. Submitting Form 15G/15H (if eligible) can help avoid TDS.
5. PF Advances (Not Loans)
You can request partial advances from your EPF for specific reasons. These are not loans and have no repayment requirement.
Eligibility depends on the purpose:
- Medical emergencies: No minimum service required
- Marriage/Education: Minimum 7 years of service
- Home purchase/construction: Minimum 5 years of service
6. Job Changes
When you switch jobs, it is mandatory to transfer your existing PF balance to your new employer’s PF account.
You can initiate the transfer online through the EPFO portal using your Universal Account Number (UAN).
7. Full Withdrawal
You are allowed to withdraw your full EPF balance if:
- You have been unemployed for 2 months or more, or
- Your new job starts after a 2-month gap following your last working day
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