Tax on PF withdrawal
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Tax on PF withdrawal

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The whole amount in the EPF cannot be withdrawn till the age of retirement.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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75 Comments

  • 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.

    • 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.

  • How to provide my epf date of exit tell me please

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

  • 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.

    • 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.

  • How Can we know whether my Pf account of previous employer cancelled or not? I want to transfer my previous account service to current employer and wants to maintain single UAN. Is it possible?

    • 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.

  • Due to some financial problems shall I withdrawal my pf amount. it is possible??

    • 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.

      • Could you mention the specific dates to which we can apply for partial pf for marriage, medical etc

        • You can apply for partial PF withdrawal for medical after 5 years of your service and for marriage the limit is 7 years.

        • You can apply for partial PF withdrawal for medical after 5 years of your service and for marriage the limit is 7 years.

  • 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?

    • Hi Ankita,
      No, you cannot withdraw for marriage as it is permitted only after 7 years of service.

  • 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

  • 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?

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

  • 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.

    • Hi Nirav,
      You can lodge a grievance to PF department.

  • 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.

    • 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.

      • Sir, i had a similar issue and now i withdrew my PF with 10% tax deduction. Can i claim that amount while filing IT Returns?

        • Yes, you can claim the tax

  • Hi,
    Can you please let me know what will be TDS tax for total PF is around 120000

    • Hi Ashok,
      If PAN is given then 10% i.e., 12000 else you will be taxed at 34.6% i.e., 41520

      • 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.

  • 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.

  • 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.

    • 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.

  • 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.

    • Hello Sir,
      If the amount is more than Rs. 50000 then it will be taxable.

  • 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?

    • 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

  • i have 5 yrs service i applied EPF for house 4lakh. will there be tax on it.

    • Hi Harish,
      Partial Withdrawal of EPF for Housing purpose is possible only after 7 years of service as per EPF record. Please check your eligibility once. There will be no tax on partial withdrawal of EPF.

  • For Partial Withdrawal of EPF, is there any eligibility criteria for that like no of years in job, Reason of partial withdraw . Is there any details for different possibilties of advance PF withdrawal?
    Plz provide it.Thank you

    • Hi Ritesh,
      Yes, No. of years of services does matter for partial withdrawal of EPF. For more details, please visit EPF website

  • the pan card details cannot be updated in UAN website. its showing name in PAN doesnt match UAN name. PAN card always has full name (initials not abbrivated) and every other document including adhar,dl,voter id UAN card has same name but initials (abbrivated)

  • I WANT TO APPLY ONLINE MY PF WITHDRAWAL WITH UAID NUMBER

    • Hi Christina,
      Please apply through your UAN login.

  • Hello, as per the above chart (which is very self-explanatory and helpful), after 7+ years of continues service and after 2 months of unemployment, I can withdraw the full amount. My aadhar is verified in PF account, but my PAN is not, due to name mismatch. In this case, how much TDS is possible to be deducted if I withdraw the full amount?

    • Hello Sir,
      The deduction will be done at 34.6% on the amount being withdrawn, If the PAN is not available.

  • Hi Sir, Thanks for the flowchart and clarifications. Really appreciate your effort here.

    I have couple of questions.

    1) I have served total of 10.5 years with company & quit my job last year June 2018. During my tenure around April 2017 I did part PF withdrawal. Now I have my balance PF amount approx – 1,20,000 to withdraw & I’m not working currently in India, moved abroad. Should I still need to fill form -15g ? or it doesn’t required in my case, since my total service is more than 5 years.

    2) Since I have exceeded more than 10 years of service, by when I can avail my pension amount?

    Kindly assist me with my questions. Thanks in advance.

    • Hi Sir,
      Sir, 1) You are not required to submit Form 15G as the account service period is more than 5 years. 2) You can claim a pension after you attain 58 years.

      • Thanks a lot for your clarification. Much Appreciated.

        • Hello Arun,
          Thank you for reading and commenting. We are glad this blog was useful to you.

  • My query is regarding my PF withdrawal, my total EPF amount is less than 50k but if I will add EPS amount it will cross 50K, but my total service in that organization is less than 5 years. So while withdrawing PF and Pension the tax will be deducted? Also please suggest how we can fill 15/H form for the same? means what field required to be fill the form?
    Please suggest.

    • Hello,
      Yes, the tax will be deducted. Form 15G can be filed only if your annual income is less than 2.5 Lakh. It can be downloaded from income tax website and the information to be given are your PAN number, your annual income, your PF amount receivable.

  • Hi,
    sir I have resigned from my previous organisation and joined new organisation with new UAN number and i had transfer my all previous Epf balance to new one ,now i have completed 18 month of service ,my question is that can I withdraw the amount which I had transfered from previous UAN
    PL HELP

    • Hello,
      NO. You will not be able to withdraw the amount as your account is considered as a continued account.

  • Hello
    I have mentioned EPF and EPS amount
    EPF – 38781
    EPS – 20474
    I want to withdraw both EPF & EPS but my PAN is not verified in PF account.
    I have worked less than 5 years
    Is it TDS will get deduct bcz EPF & EPS amount will exceed 50000.

    Kindly let me know,it will help me to withdraw my PF amount

    • Hello Shweta,
      Yes, TDS will be deducted in your case. As PAN is not verified, TSD wil be deducted at 34.6% of the total amount

  • HI SIR,
    MY SERVICE IS MORE THAN 5 YEARS AND ALSO PF AMOUNT IS MORE THAN 3 LACS IN THIS CASE WHEN I CLAIM ONLINE FOR WITHDRAW MY PF , IS THAT COMPULSORY TO FILL UP FORM 15 G FOR NOT DEDUCTED TDS ?
    PLEASE REPLAY AS EARLIER,

    THANKS,

    • No, not required.

  • Hi,
    I have a query which is after getting the whole amount, will EPFO Office close the UAN account auomatically ?
    or if not then how much amount (in percentage) is remaining in account and when it will be closed?

    • If your have withdrawn whole amount, the UAN account will be temporarily suspended.

  • Hi Team,

    I have completed 7 Years of Service with my organization and now I have relocated to my native and unemployed since two months.

    So I tried to claim PF online, but my PAN is not verified by IT officials due to name against UAN does not match with the name in income tax department.

    My question is Do I need to verify PAN though I have completed 5 Years of Service Criteria.

    Please suggest.

    Thanks, Naveen

    • Yes, you have to get it verified

  • Hi,

    I’m in service for 12+ years, but only 1 yr with my present Organization. Will there be any Tax if I withdraw my PF ?

    • No, the tax will be applicable on the withdrawal

  • I had transferred my old employment PF to the current employer (6 years of service) with current employer i had completed 4 years & 9 months. Transfer of PF account already completed. Now I had applied for partial with drawl, later i realized that i wanted to increase the with drawl amount. There is no way to cancel the online claim initiated. In this case upon with drawl succeeded, can i apply for another with drawl.

    • Partial Withdrawal depends on the reason given specific reasons can be for once in a lifetime whereas few as more than once withdrawal type. Please check on the same.

  • Hi I am trying to withdrew my pf amount from my previous company, I have worked there for 4.3 years. My previous company UAN says below comments while filing the online claim form

    I.e Passbook not available to this Member-id as this pertain to exempted establishment (i.e. Trust).

    Could you please advise.

    Regards
    Amit Bhandari

    • Please contact the HR of the previous company as the PF was maintained under PF Trust.

  • Sir
    If the PF amount is 47000, EPS amount is 25000 and employment period is less than 10 years, and PAN card also not verified in UAN member portal, it shows like- Name in PAN doesn’t match UAN name. will a person get taxed?. Asking because the PF amount is than 50000 but PF plus EPS is more than 50,000.
    Or the person will get his PF amount throw Offline without deducting any TDS or charges?

    thank you

    • If the service period is more than 5 years, then PAN is not required and the amount is also not taxed. Else PAN is mandatory. The offline withdrawal process is currently not available.

  • Hi,
    I worked in India till May 2016 before moving to UK. The PF account was opened in Jan 2013.
    Let’s assume that total balance(Employee + Employer) contributions stand as 10Lacs as of today.
    1. Can I withdraw the entire 10Lacs to replay home loan?
    2. What would be TDS for this withdrawl if any?

    Thanks,
    Shad

    • Sir, You can close your PF account which will allow you for complete withdrawal. But doing partial withdrawal for home loan repayment is not possible. The TDS will be deducted @10% provided you have your PAN & Aadhar Linked

  • I need to with draw my pf I am having 2 years of experiences in vitech software solutions please let me know the requirements and how to get my pf

    • Sir, for PF withdrawal, you require a minimum of 5 years of experience.

  • I am 57 yrs old. I want t0 withdraw 90% PF amount . Is this amount will be taxable or not. if taxable , then what will be the % .

    • If your PF account is 5 years and old, the amount is non-taxable. Else it will be taxed at 10%.

  • Hi Sir,

    I have few quires related to withdrawal of my EPF and PF amount. Could you please help me with this. I have completed 5 years of service and unemployed since 2 months.
    1. Can I withdraw both EPF and PF?
    2. Do I need to submit 2 separate forms for EPF and PF withdrawal or can this be done in one consolidated form?
    3. Do I need to pay taxes on the withdrawal of EPF and PF? I have completed 5 years of service and claiming more than 50,000.

    • 1. Yes, you can withdraw
      2. Now, withdraw is through ONLINE mode with a single submission
      3. No, TDS will not be deducted if your PAN is updated in UAN portal.

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