Written By: Danish
Withdrawing EPF before 5 years of continuous service attracts up to 30% tax. Early withdrawals can significantly reduce your retirement savings.
Complete 5 years of employment for tax-free withdrawals under Section 10(12). Job changes break continuity - transfer PF instead of withdrawing.
Withdraw tax-free for medical emergencies, company closures, or layoffs. Retirement withdrawals after 5 years are completely tax-exempt.
Avoid withdrawing before 5 years, forgetting PAN submission, or assuming Form 15G/H always prevents TDS. These errors cost heavily in taxes.
Transfer PF when changing jobs to maintain 5-year continuity. Make partial withdrawals for home/education needs which are often tax-free.
Submit Form 15G/H if income is below taxable limit. Withdraw in low-income years to minimize tax impact on your PF savings.
Keep job records and withdrawal reasons documented. Consult EPFO portal or tax expert before withdrawing to maximize your savings.