The new facility will be available from June, with this you will still be able to withdraw money if needed.
The Central Government Employees Provident Fund Organization (EPFO) is preparing for major changes next month i.e. in June. According to media reports, according to the draft of EPFO 3.0, employees may soon have the facility to withdraw PF money from ATM and UPI without delay.
Withdrawal cards can be given to PF account holders under EPFO 3.0. It will be just like a bank ATM card. Under the new facility, only a fixed amount can be withdrawn. This will ensure that the employee will be able to withdraw money for emergency, but adequate amount can be ensured in the account even after retirement.
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 cash from the ATM machine without any delay. To withdraw cash from UPI, you will have to link your PF account with UPI. After this subscribers will be able to transfer PF cash to their bank account.
Under PF withdrawal rules, if a member loses his job, he will be able to withdraw 75% cash from PF account after 1 month. With this he will be able to fulfill his needs during unemployment. The last 25% deposited in the PF will be able to be withdrawn several months after job loss.
If an employee completes five years of service in a company and withdraws PF, he does not have income tax liability. A period of five years can also be extended by combining one or more companies. It is not always necessary to complete five years in a single company. The total duration must be at least five years.
If an employee withdraws more than Rs 50,000 from his PF account before completing five years, he will have to pay 10% TDS. On the other hand, if you do not have a PAN card, you may have to pay 30% TDS. However, if the employee submits Form 15 G/15 H, no TDS is deducted.
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