For what purposes can you withdraw money from PF?

You can withdraw your PF money in case of medical emergency, education, marriage, buying land, building a house or being unemployed. To withdraw money for marriage, you can avail the benefit of EPF advance only after completion of seven years of EPF membership.

For whose marriage can you withdraw money?

You can withdraw marriage advance from EPAP either for your own marriage or for the marriage of your son or daughter or for the marriage of your brother or sister.

How to avail EPF advance for Marriage?https://t.co/PUQgGSxWml#EPFO #SocialSecurity #Pension #Services #EPS #AmritMahotsav @PMOIndia @byadavbjp @Rameswar_Teli @LabourMinistry @MIB_India @PIB_India

— EPFO (@socialepfo) December 15, 2023

How much money can be withdrawn?

There are two types of money in PF, one is the money deducted from your salary i.e. your contribution and the same amount is deposited by the company which is called company’s contribution.

You can withdraw 50 percent of your PF contribution for marriage. Interest is also given to you by adding it to this. Let us tell you that you cannot take more than three advances for marriage and education.

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Every month this money is deducted from your salary so that you have a big fund at the time of retirement, so that even if you do not have a job, you can run your own expenses. Employees can withdraw EPF money at the time of major emergency. Many times you can withdraw some money from this during daughter’s marriage, major illness or emergency. That is, you can claim your PF.

Claim comes in 3 to 7 working days

In most of the cases, it has been seen that the PF claim is credited to the bank account within 3 to 7 days. If your PF claim has not come even within 20 days of applying, then you can complain about it. Know here where you have to complain.

Have to complain here

1. For any matter related to EPF such as PF claim, PA advance or passbook, you have to complain by visiting the EPF grievance portal. For this you have to click on the link

https://epfigms.gov.in/Grievance/GrievanceMaster.

2. If you have to make a complaint related to PF claim, then click on the option of PF Member. After this complain with the help of your UAN number. As per rules, your complaint should be resolved within 7 days. If even then your PF claim has not come, then you are told the reason for it.

3. If you have to make a complaint related to pension, then you have to click on the option of EPS Pensioner and complain with the help of your PPO number.

4. You can complain by going to the Umang app or the EPFO ​​office or commissioner near your area.

When can you withdraw PF money?

After retirement, you can withdraw the entire PF money. After 45 days of leaving the job, you can withdraw the entire amount of PF. You can also withdraw advance from PF at the time of illness, Covid or at the time of daughter’s marriage.

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You must have heard about Employee Provident Fund i.e. EPF that there is tax exemption on the money deposited in it. But this exemption is not for every situation. If you make partial or full withdrawal from the EPF account before maturity, then that amount is taxed.

Its biggest and main rule is that if EPF money is withdrawn before completing 5 consecutive years of service, then TDS is deducted on it. One good thing is that you do not necessarily have to work for 5 consecutive years in the same company. TDS is not deducted on EPF withdrawal even after changing the institution and completing 5 years.

The second rule says that let’s say that you are working in a company on a consultant or contract for 2 years. During this your PF is not deducted. After two years, the company took you on the payroll and became a permanent employee. With this, your PF deposit also started. After completing 5 years in this company, you left your job and joined some other company. You suddenly needed money and withdrew money from PF. You came to know that TDS has been deducted on PF withdrawal.

Keep this special thing in mind

You must be thinking that worked in the previous company for 5 years and after that withdraw money from PF, then why TDS was deducted on withdrawal. The answer is that even though you have worked for 5 years in the company, only 3 years of permanent work will be counted. This is because your PF has been deposited during that time and not for the entire 5 years. Troubled by this tax deduction, you must be thinking of some way to save it. So let us tell you the solution for this.

Ways to save TDS

1. Whenever you change jobs, do not think of withdrawing money from EPF or withdraw money. It would be good to transfer the EPF money of the previous company to the new company. This will save you from huge tax losses.
2. In any case, try not to withdraw EPF money during 5 years of service. If this money is withdrawn after 5 years, then no TDS will be deducted on it.
3. Without withdrawing PF money, it is not going to work and you have made up your mind to withdraw it, then try to take less than Rs 50,000. No TDS is deducted for withdrawing money less than this.
4. Keep in mind that if you have withdrawn less than Rs 50,000 from EPF, but you fall in the taxable bracket, then you have to show the withdrawal amount in ITR. Otherwise tax can be deducted on withdrawal.
5. If you have withdrawn more than Rs 50,000 from PF, then 10% TDS will be deducted on it. The only way to save it is to fill the form 15G or 15H.

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This will completely change the take home salary, PF and gratuity. In this code, the salary coming in the hands of the private employer can be reduced. However, the government is making better arrangements regarding old age. According to experts, the monthly in-hand salary will undoubtedly decrease, but due to the increase in basic, more money will be deposited in the retirement fund. This will create a huge fund for retirement. Apart from this, there will also be benefit in Gratuity.

Understand the calculation here

If the age of an employee is 30 years and his monthly salary is 50 thousand rupees and basic salary will be 15 thousand rupees. So if the average appraisal is taken in 5% salary every year till the age of retirement i.e. 60, then according to the current interest rate of 8.1%, the total amount in the PF account from regular investment will be Rs 65,36,758.

Now the basic salary of an employee will be 25 thousand rupees per month. Then the amount of PF on retirement will be Rs 1,08,94,586. Here the annual increment of 5 percent has been taken, due to which the PF fund will increase further.

What is Cost to Company 

New Wage code benefits: CTC is the expenditure incurred by a company on its employee. This is the complete salary package of the employee. CTC includes Monthly Basic Pay, Allowances, Reimbursement. At the same time, products like gratuity, annual variable pay, annual bonus are included on an annual basis. The amount of CTC is never equal to the employee’s take home salary. CTC has many components so it is different. CTC = Gross Salary + PF + Gratuity

What is the basic salary?

Basic salary is the base income of an employee. It is fixed based on the level of all the employees. It varies according to the rank of the employee and the industry in which he is working.

What is Gross Salary?

The salary which is made by adding basic pay and allowances without deducting tax is called gross salary. This includes bonus, overtime pay, holiday pay and other itemized allowances.
Gross Salary = Basic Salary + HRA + Other Allowances

What is net salary?

Net salary is also called take home salary. The salary that is made after deducting tax is called net income.
Net Salary = Basic Salary + HRA + Allowances – Income Tax – EPF – Professional Tax

What allowances will be included?

The company gives allowances to the employee in lieu of the job. This may vary from company to company.

> HRA : House Rent Allowance is given to the employee in lieu of the house on rent.

> LTA : LTA is the cost of domestic travel to the employee. This does not include food, hotel fare.

> Conveyance Allowance: Conveyance allowance is given to the employee in lieu of the expenses incurred in going home from office.

> Dearness Allowance: DA is a living allowance. It is given in lieu of inflation. Its eligible are government employees and pensioners.

> Other allowances include special allowance, medical allowance and incentive or incentive.

How much will be the reimbursement

According to experts, in many companies, there is a provision to reimburse the employee for treatment, phone expenses, newspaper bills. This amount is available separately from the salary. But only after paying the bill. Under the Income Tax Act, every reimbursement is tax exempt up to a limit.

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