Tax on PF withdrawa

Employee Provident Fund (EPF) scheme, the main approach is to provide benefit to the employees at the time of their retirement. The EPF scheme specifies that a nominal amount is deducted from the employees’ salary as a contribution towards the fund. Tax on PF withdrawal is the main concern of the employee who leaves the company early. The changes regarding the Income-tax rules on the EPF withdrawal are discussed below.

Employee Provident Fund Organisation or EPFO can deduct tax at source (TDS) only if an employee falls under these two cases:

  • If the employee has not completed 5 years of his/her continuous service.
  • If the EPF withdrawal amount is more than Rs.50,000. Earlier the limit was Rs.30,000

Tax on PF withdrawalEPF Withdrawal Rules

The government introduces the new Provident Fund (PF) withdrawal rules. They are;

  • Withdrawal restrictions

The whole amount in the EPF cannot be withdrawn till the age of retirement. The PF account consists of the contribution made by the employer, a contribution made by employee and interest earned on employer and employee contribution.

 The exception to the new rule 

Female employees are given exemption who is resigning from the services for getting married or due to childbirth or pregnancy. So, they can withdraw the whole EPF Balance.

  • Retirement Age

The retirement age is 58 yrs. A person can withdraw up to 90% of PF balance on attaining the age of 57 yrs.

  • PF Membership and employment

The membership as an employee would not withdraw the full PF balance till the age of retirement.

This completes our post on Tax on PF withdrawal. If you have any queries regarding this post kindly drop down your queries in the comment section below.

Related: PF online withdrawal procedure

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30 thoughts on “Tax on PF withdrawal

  1. If I am resign before completing 10 yrs. than I am eligible for getting whole amount that is employees share + employer share + deducted pension amount form employer share? or not.

    1. Yes Sir. If you resign before completing 10 years, then you will be eligible for the whole amount provided that you don’t continue employment. If you do start working in a new company, then the account will be transferred.

    1. Dear Sir, EPF exist date will be updated by your employer. Please contact the concerned person in your organization for the update.

  2. Hi, Thanks for the flow chart, it makes it very clear but if the PF amount is 45000, EPS amount is 25000 and employment period is less than 10 years, will a person get taxed. Asking because the PF amount is than 50000 but PF plus EPS is more than 50,000.

    1. Sir, tax is calculated only on the EPF amount and not on EPF+EPS amount. Hence, if the EPF amount is less than Rs. 50000 then no TDS will be deducted.

    1. To know the previous service details, login to your UAN account and check if date of leaving is entered in the previous company. If yes, then the previous employer account is closed. Now, you can transfer to the current employer in the same login and continue with a single UAN.
      Please note: Provide the Same UAN at the current employer.

    1. Hi Prasad,
      You can withdraw your PF only for certain cases like medical emergency, marriage, education, etc. on completing a certain pre-defined number of service period in the organization.

  3. I need to withdraw my pf after 5 yrs for my marriage but i am not resigning.
    Am I eligible to withdraw and how much maximum amount can i withdraw?

  4. how can i get my pf of 2011 to 2015 but in 2011 no adhar updated nd no uan allotetd by govt. pls help me i have my emp. id nd also pf no can i get my pf

  5. 1. Do I need to furnish any document if I withdraw Pf partially for ‘illness’?
    2. After withdrawal of the amount will the PF account will auto continue?

    1. Hi Mazumer,
      1) If the withdraw request is through online, then not required.
      2) Yes, the account will continue with the balance amount

  6. Dear Sir,

    I have worked with reliance industries for 6 years.

    I have changed my job in march 2019 and shifted to gulf country.

    As my pf account is with employer trust. I have submitted form 19 for offline pf withdrawal.

    Till date I have not received any amount in my account.

    I have contacted my employer several times but they are not responding.

    What can i do in that case ?

    Can i lodge online pf grievance ?

    please guide me.

    Thank you for humble support.

  7. Hi
    I want to know that how we claim a PF Amount. Actually when i go online first the require KYC in that my aadhar card is match with UAN No. But my pan card is not match with UAN.So That PF officer told me that 35% of your PF will be deducted. So i want to know that how I get full amount without deducted any amount. please reply me i want waiting for your Answer.

    1. Hi Sir,
      Please apply Offline at the concerned PF office. Note that Tax @ 10% will be deducted if you have not completed 5 years of service.

      1. Thank you,
        I have given my PAN, can you please let me know how can I stop the TDS tax. I’ve submitted request Yesterday only.

  8. I worked for a company for 6 years and then joined another company and worked there for 4.5 years. My PF account shows reason for leaving as Cessation (Short Service). Is my PF taxable.

  9. I have worked for 9 years. My PF
    àmount if about 3 lakhs. 1.Whether this amount is taxable?
    2. Whether I should submit form no. 15G or not?
    Please help me.

    1. Hi Jagadish,
      1) NO. The amount is not taxable as your service period is more than 5 years
      2) You are not required to submit Form 15G.

  10. Hi,

    I was working for one organization and my duration was 4 years 6 months, My last date was there is August 2015.
    If I withdraw my PF now (July 2019), will it be taxable?
    Please guide me further.

  11. sir, i have few queries and i request u you to answer each query .
    # if my salary is more than 2.5lakh and my service period is less than 5years i.e. DOJ -JULY 2015 to DOE- MAR 2019.
    how i can save TDS deduction on pf withdrawal?
    # sir, Interest of year 2018-19 is not credited yet. If i withdraw pf amount, will interest add automatically of till date or i should wait for update in passbook?

    1. Sir,
      #1 – TDS will be deducted on your PF withdrawal. But, you can do investments in FD and take the exemption on such investment. This, in turn, will help you to get the refund of TDS deducted through Income Tax Return
      #2 – Please wait till the Interest is credited

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