Amendments on PF Withdraw rules
|Particulars||Earier Provisions||New Provisions|
|Retirement Age Limit||Age 55||Age 58|
|Withdraw amount before of the retirement age||Up to Total contribution X 90%||Up to (Employee contibution+Interest) X 90%|
|EPF Membership Continuity||If Employee withdraw the full amount after resignation the PF membership will cease to exist.||Employee cannot withdraw the full amount untill the attainment of retirement age. So membership will continue even after resignation from employement.|
|Taxability on withdrawal||Full Exempted on matured fund||60% of the withdrawal from the Fund if taxable as per new provisions w.e.f 1-Apr-2016|
Govt rolls back the new EPF withdrawal norms and old system will continue. The notification which was issued on 10th Feb, 2016 has been cancelled. Click Here for Notification
Q) Is it Online available in EPF operations?
- Not Yet, Presently the process is in Manual only. However EPFO is working for implementation of online System from Aug-2016.
Q) How much interest rate?
- Rate will declare for every year by department.
- 8.8% for the fiscal Year 15-16.
Q) What are the Tax implications?
- If a person withdraws from his or her employee’s provident fund (EPF) account before five years, TDS will be deducted at the rate of 10 per cent if the amount withdrawn is more than Rs. 50,000 as against the earlier limit of Rs. 30,000. However, if a person fails to provide PAN number, tax will be deducted at 30 per cent.
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