EPF withdrawal conditions: Money can be withdrawn from a PF account for medical emergencies, children’s education, buying a house, or other important purposes. But do you know the things and activities for which you cannot withdraw money from your PF account?
Millions of employees in the country have provident fund accounts. Every month, 12 percent of an employee’s salary is deducted and deposited into their PF account. The company also deposits an equal amount into the employee’s account. This money deposited in the PF account helps secure the employee’s future financially. The government also offers attractive interest rates on the money deposited in the PF account.
However, if an employee needs money during an emergency, withdrawals are permitted under certain circumstances. Funds can be withdrawn from a PF account for medical emergencies, children’s education, purchasing a house, or other important purposes. Do you know the specific purposes for which you cannot withdraw money from your PF account?
Under what circumstances can money not be withdrawn from PF account?
- If you are working in a company, then in this situation you cannot withdraw the entire PF amount.
- The Employees Provident Fund Organisation makes full settlement only to those people who have either retired or are unemployed for 2 months or more.
- If you want to buy a mobile phone with PF money, want to go somewhere for a trip or want to fulfill any of your hobbies.
- You cannot withdraw your PF funds for these reasons. Withdrawals from a PF account are only permitted for essential purposes.
- You cannot withdraw money from your PF account even to invest in the stock market or mutual funds.
- Additionally, you cannot withdraw money from your PF account to buy a house or a car, as the EPFO does not approve this.
- You should know that money can be withdrawn only once for children’s education or marriage.
- Money cannot be withdrawn from the PF account by repeatedly citing the same reason.
- If you have a PF account then you should know about these things.
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