If you are also a PF account holder, then let us tell you that from April 1, 2023, the government has changed the rules for withdrawing money from EPF. A major decision was taken in Budget 2023 regarding withdrawal from EPFO.
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Finance Minister Nirmala Sitharaman has changed the tax rules regarding withdrawal from Provident Fund. Now, if PAN is not linked, 20 percent TDS will be levied during withdrawal instead of 30 percent. This rule will be applicable from 1 April 2023. The benefit of the changed rule will be to those PF holders, whose PAN is not yet updated. Actually, if an account holder withdraws money within 5 years, then he has to pay TDS. Whereas, after 5 years no TDS is levied.
Apart from this, the minimum threshold limit of Rs 10,000 for TDS has also been removed in Budget 2023. However, in the case of lotteries and puzzles, the rule of Rs 10,000 limit will continue to apply. TDS will not be deducted up to a total amount of 10 thousand in a financial year. After that TDS will be deducted.
Know what are the new rules
, people who have tax PAN card have to pay less TDS. If someone’s PAN card is not updated in the records of EPFO, then he has to pay TDS up to 30%. Now it has been reduced to 20 percent.
When is TDS taken
Apart from the above situation, if a person withdraws money within 5 years of opening the EPFO account, then he will have to pay TDS. If an amount of more than Rs 50,000 is being withdrawn and PAN card is available then 10% TDS will be levied, but if PAN is not there then he will now have to pay 20% TDS instead of 30%.
When can PF money be withdrawn The amount deposited in PF account can be withdrawn partially or completely, it is also called PF withdrawal. EPF amount can be withdrawn when the employee retires or remains unemployed for more than 2 consecutive months. At the same time, in circumstances like medical emergency, marriage, home loan payment, some part of the amount deposited in this fund can be withdrawn under certain conditions.
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