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HomePersonal FinancePF withdrawal rule change from April! Keep these things in mind while...

PF withdrawal rule change from April! Keep these things in mind while withdrawing money from PF, know what will change

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Employees’ Provident Fund (EPF) is a retirement scheme. This helps financially in future. Generally, money is withdrawn from this scheme after retirement. However, money can be withdrawn even earlier if needed. There are different rules for this.

TDS on withdrawal before five years

If an employee withdraws money from EPF before the completion of five years, then TDS is levied on it. No TDS will be levied on withdrawal of money after completion of five years.

However, TDS is not applicable for withdrawals before five years in certain circumstances. This includes the employee becoming ill or the closure of the business. In such case the employer cannot deduct TDS.

New rule will be applicable from April

Interest earned on contribution of more than 2.5 lakhs per annum in the EPF scheme will be taxed. This new rule will come into effect from April 1, 2022. It was announced in the budget of 2021, but due to lack of clarity, this rule is being implemented from 2022.

Pravesh Maurya
Pravesh Maurya
Pravesh Maurya, has 5 years of experience in writing Finance Content, Entertainment news, Cricket and more. He has done BA in English. He loves to Play Sports and read books in free time. In case of any complain or feedback, please contact me @ businessleaguein@gmail.com
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