The Central Government Employees Provident Fund Organization (EPFO) is preparing for a big change in the next month i.e. June. According to media reports, according to the draft of EPFO 3.0, employees may soon get the facility to withdraw PF money directly from ATM and UPI. Under EPFO 3.0, withdrawal cards will be provided to PF account holders. It will be completely like a bank ATM card. Only a fixed amount can be withdrawn under the new facility. This will ensure that the employee will be able to withdraw money for emergency, but even after retirement, sufficient amount will be ensured in the account. How can PF money be withdrawn from ATM and UPI?
In this new process, EPFO will issue a special ATM card to its subscribers, which will be linked to their PF account. Using this card, subscribers will be able to withdraw their PF money directly from ATM machines. On the other hand, to withdraw money from UPI, you have to link your PF account to UPI. After this, subscribers will be able to transfer PF money to their bank account. You can withdraw 75% of your PF money after one month of job loss
As per the PF withdrawal rules, if a member loses his job, he can withdraw 75% of his PF money after one month. This will help him fulfil his needs during unemployment. The remaining 25% of the PF deposited in the account can be withdrawn after two months of job loss. PF withdrawal income tax rules
If an employee completes 5 years of service in a company and withdraws his PF, he does not have any income tax liability. The 5-year period can be combined with one or more companies. It is not necessary to complete 5 years in a single company. The total period should be at least 5 years. If an employee withdraws more than Rs 50,000 from his PF account before completing 5 years in the job, he will have to pay 10% TDS. If you do not have a PAN card, you will have to pay 30% TDS. However, no TDS is deducted if the employee submits Form 15G/15H.
