You are here: Home » PF » News » Savings Schemes
;
Business Standard

Claiming advance EPF is easy, but withdraw it only if you are in dire need

There is no income-tax on the advance, but withdraw only in dire need

Topics
Coronavirus

Mumbai 

prasanjeet
prasanjeet

With the Covid-19 pandemic causing severe dent in incomes, many are turning to their Employee Provident Fund (EPF) corpus to tide over this period of distress.

Employees have withdrawn Rs 2,368 crore from their EPF accounts over the past one month. Financial experts say you should only touch your EPF money if you are in dire straits.

Employees can withdraw up to three months of basic wages and dearness allowance, or up to 75 per cent of the amount in their EPF account, whichever is less. This money does not have to be refunded.

According to Mumbai-based tax expert Balwant Jain, “Income-tax is not applicable on any advance availed of under the EPF scheme.”

How to withdraw

You need to meet a few preconditions to withdraw online.

Says Prashant Singh, business head, compliance and payroll outsourcing, TeamLease Services: “For online withdrawal of provident fund, an employee needs to make sure of the following: First, his Universal Account Number (UAN) should be activated, and the mobile number used for activating the UAN should be working. Second, the UAN should be linked to your KYC, i.e., Aadhaar, PAN, and the bank details along with the IFSC code.”

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.


We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Fri, October 23 2020. 19:58 IST
RECOMMENDED FOR YOU