Presenting the Union Budget 2023, Finance Minister Nirmala Sitharaman has changed the rules for withdrawing PF from Employees’ Provident Fund (EPF). These new rules will change from 1 April 2023. TDS will be deducted at 20% instead of 30% while withdrawing PF from EPF if PAN is not linked. This rule will be applicable in case of non linked PAN
Presenting the Union Budget 2023 , Finance Minister Nirmala Sitharaman has changed the rules for withdrawing PF from Employees’ Provident Fund (EPF). These new rules will change from 1 April 2023. TDS will be deducted at 20% instead of 30% while withdrawing PF from EPF if PAN is not linked. This rule will be applicable in case of non linked PAN. Apart from this, if he withdraws money from EPF without completing 5 years of his job, then in that case the money withdrawn will be taxed. Contribution of more than Rs 2.50 in a year in PF will be taxed.
These rules will change
Shareholders whose PAN is not linked will have to pay TDS less than before. The government has announced this in the budget. Now in such cases, PF withdrawal will attract 20 per cent tax instead of 30 per cent.
Tax has to be paid here
If a person withdraws money from PF within 5 years of opening an account in EPFO, then he will have to pay TDS. If more than Rs 50,000 is withdrawn from PF and PAN card is not linked then 10% TDS will have to be paid.
In which cases PF money can be withdrawn
Money in PF account can also be withdrawn partially or completely. However, it has its own rules on how much money you can withdraw and when and in what cases. When employees retire, they can withdraw the entire amount of PF. Employees can withdraw money from PF even when they are unemployed for more than 2 months. Apart from this, PF money can also be withdrawn for medical emergency, marriage, home loan payment.
