Employee Provident Fund Organization, or EPF Withdrawal Update, runs EPF accounts for staff members. Regular contributions made by both employees and companies to EPF accounts help to build a sizable fund over time.
The Employee Provident Fund Organization, or EPF Withdrawal Update, runs EPF accounts for staff members. Because both employee and company consistently contribute to EPF accounts, a sizable fund is eventually ready. Many times, though, employees who seek to withdraw money from EPF find less than the passbook shows. Let us examine closely the causes of this variation.
Why does our withdrawal pay less?
While the amount entered into the EPF passbook always seems higher, less money results when money is taken out. The primary cause of this is TDS rules—that is, taxes. Should you remove money and have not served five years, the government will deduct TDS. If you have a PAN card, the government deducts ten percent TDS; otherwise, this rate may exceed 34.608%. Less than Rs 50,000 withdrawal results in no TDS, nevertheless.
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Pension fund and delay for transfer
Apart from this, non-transfer of funds from the old account to the new or deduction in the pension fund could also be causes. Technical issues often cause the balance to be neglected, and the amount shows less in the passbook.
Guidelines for taking money out
Should you be employed, you cannot fully or partially withdraw the PF amount. However, if you are unemployed, you can withdraw the first 75% and then 25% of the total after two months. Still, tax causes the amount to drop in this case as well.
From PF, how can one take money out?
Get the passbook updated and complete all the required documentation—including Form-19 and 10C—before withdrawing money. Using the Umang app, missed call, or SMS, you may also view your balance.
Should you withdraw your Employees’ Provident Fund (EPF), the amount you get might be less than planned. Knowing why this is happening can enable you to better handle your money.
Reasons behind Lower EPF Withdrawal Amount
Pension Contribution Made by Employers
Of your company’s contribution (8.33%), some goes into the Employees’ Pension Scheme (EPS). This is not refundable upon withdrawal and does not show on your EPF balance.
TDS, or tax deducted at source
TDS is relevant if you take out your EPF amount before serving five years continuously. Should your PAN be linked, the rate is 10%; should it not, it is 30%.
Partial Ret withdrawals
Any partial withdrawals made while working lower the total EPF sum accessible at ultimate withdrawal.
Mismatched data
Differences between your EPF records and official documentation could cause delays or rejections of claims, therefore influencing the total distributed amount.
Common Inquiries Regarding EPF Withdrawal
Q1: Can I take out my EPF without asking my company?
Indeed, assuming your UAN is turned on and KYC information is updated, you may withdraw your EPF without employer attestation with the Composite Claim Form.
Q2: An EPF withdrawal takes what length of time to process?
EPF withdrawal claims are usually handled within twenty days.
Q3: Should EPF withdrawals call for TDS?
TDS applies should you take out your EPF before five years of continuous service are up. Should your PAN be linked, the rate is 10%; should it not, it is 30%.
Q4: Should I be unemployed, is it possible to withdraw my EPF?
You are able to withdraw up to 75% of your EPF balance following one month of unemployment. Two months later you can take out the remaining 25%.
Q5: How might I avoid TDS on EPF withdrawal?
Make sure your PAN is linked to your EPF account and you have five years of continuous service underlined to avoid TDS.
Understanding these elements will help you to control your EPF withdrawals and prevent unplanned deductions.
