LIVE TV
ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • Home
  • Budget 2021
  • Personal Finance
    • PPF
    • Mutual Funds
    • Income tax
    • EPFO
    • Income Tax Calculator
    • Personal Loan Calculator
    • Car Loan Calculator
    • Home Loan Calculator
    • SIP calculator
    • SWP Calculator
    • MF Returns Calculator
    • Lumpsum Calculator
  • India
    • Companies
    • Property
    • Startups
    • Uidai
  • Economy
    • Aviation
  • Tech
    • Mobiles
    • Apps
  • Auto
    • Cars
    • Bikes
  • Markets
    • Commodities
    • Currency
  • Jobs
  • Indian Railways
  • World
    • Economy
    • Politics
    • Markets
  • videos
  • photos
  • Authors
  • More ...
    • VIDEOS
    • PHOTOS
Read in App
Business News » Personal Finance News

Employee Provident Fund: Withdraw your funds partially when you face this situation

In case of lockout or closure of the company for more than 15 days, and if you do not receive wages/salary, you can take advance against balance in EPF account. 

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
  • View in App
Employee Provident Fund: Withdraw your funds partially when you face this situation
You can withdraw up to 24 months equivalent of your basic salary and Dearness Allowance (DA) for purchasing land for constructing own house. Image source: PTI
Written By: ZeeBiz WebTeam
Updated: Wed, Oct 24, 2018
08:40 am
Mumbai, ZeeBiz WebDesk
RELATED NEWS
PF account withdrawal: If you have withdrawn money from Provident Fund, then give information while filing tax returns, know why it is important PF account withdrawal: If you have withdrawn money from Provident Fund, then give information while filing tax returns, know why it is important
EPFO alert! New Year gift from Modi government - Good news is here! EPFO alert! New Year gift from Modi government - Good news is here!
EPFO employees alert! Know your Diwali PLB bonus, here's how to calculate it EPFO employees alert! Know your Diwali PLB bonus, here's how to calculate it
How you can transfer your EPF account; check steps and why you need to do it How you can transfer your EPF account; check steps and why you need to do it
Have EPF account? Here’s why you must also get UAN ID - Find out what EPFO says Have EPF account? Here’s why you must also get UAN ID - Find out what EPFO says

Employee Provident Fund (EPF) helps salaried people accumulate funds while they are earning for the period when the income stops. Hence, it is not supposed to be withdrawn before its maturity as this could jeopardize one’s retirement. However, there are some special circumstances when subscribers are permitted to withdraw the money.

Loss of job, non-receipt of salary

Earlier subscribers were allowed to withdraw the full balance in the EPF account and close the account if they remained unemployed continuously for two months. Today, you can withdraw up to 75% of the balance in the EPF account if you are without any employment for more than one month. This will allow you to retain the account and meet expenses while remaining unemployed,

Similarly, if you are employed but have not received any salary/wages continuously for two months for any reason other than a strike, you are allowed to take advance against the balance in EPF account.

In case of lockout or closure of the company for more than 15 days, and if you do not receive wages/salary, you can take advance against balance in EPF account. While in employment you can take advance up to the amount of your own contribution and interest accumulated on such contribution. This facility can be availed any time without any requirement of completion of specific period of employment.

For buying home, land

You can withdraw up to 24 months equivalent of your basic salary and Dearness Allowance (DA) for purchasing land for constructing own house. For purchase or construction of a house, the eligibility goes up to 36 months equivalent of salary and DA. However, the amount cannot exceed the employee’s own contribution and interest accumulated on it. The total eligibility in both cases cannot exceed cost of the land or cost of construction or purchase price of the house. The assets need to be purchased in the name of either the subscriber or spouse or jointly by both. You can also withdraw up to 90% of the balance in the EPF account, for repayment of your existing home loan, provided that at least 10 years contributions have been made and there is a minimum balance of Rs 20,000.

Illness, education or marriage

One can withdraw from EPF for medical treatment of self or any family member. The amount is restricted to six months to six months of the basic salary and DA at the time of withdrawal and also to your own contribution. You can avail this withdrawal facility for surgery or treatment of any disease which requires hospitalisation for more than one month.

Similarly, you can withdraw from EPF account for marriage of self, siblings and children, as well as for meeting children’s educational expenses. The amount is restricted to 50% of your own contribution with interest accumulated thereon.

For both purposes you should have contributed to the EPF for minimum seven years. Certificate from the educational institution where the child is going to pursue studies has to be submitted. You cannot avail this facility more than three time during the currency of the EPF account.

Watch this Zee Business video

During one year before retirement

You can withdraw up to 90% of the accumulated balances in the EPF account any time after you have completed 54 years. This facility, however, can only be exercised within one year before the retirement or superannuation. Once you retire from your employment you can withdraw the full balance any time and as much as you want.

By: Balwant Jain
(The writer is a tax and investment expert)

Source: DNA Money

Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.

TAGS:
Employee Provident Fund (EPF)EPF Account
RELATED NEWS
PF account withdrawal: If you have withdrawn money from Provident Fund, then give information while filing tax returns, know why it is important PF account withdrawal: If you have withdrawn money from Provident Fund, then give information while filing tax returns, know why it is important
EPFO alert! New Year gift from Modi government - Good news is here! EPFO alert! New Year gift from Modi government - Good news is here!
EPFO employees alert! Know your Diwali PLB bonus, here's how to calculate it EPFO employees alert! Know your Diwali PLB bonus, here's how to calculate it
How you can transfer your EPF account; check steps and why you need to do it How you can transfer your EPF account; check steps and why you need to do it
Have EPF account? Here’s why you must also get UAN ID - Find out what EPFO says Have EPF account? Here’s why you must also get UAN ID - Find out what EPFO says

LATEST NEWS

Apple, Croma join hands on Jobs'' birth anniversary

7th Pay Commission: CONFIRMED! 3% DA, DR hike for government employees, pensioners of THIS state from March 1

Sovereign Gold Bond Scheme 2021: Issue Price fixed at Rs 4,662/gm

Indian economy 2021: With 0.4% GDP growth in 3rd quarter, country out of technical recession

Pensioners ALERT: RUSH! Last date to submit digital life certificate tomorrow—Avail doorstep service from SBI, PNB, BoB and other banks

Covid 19 2nd phase vaccination drive from March 1: EXPLAINED! Who are eligible, required photo identity, advance self-registration—All you need to Know

Ind vs Eng: Jasprit Bumrah released from squad for fourth Test

Stock Market Outlook: Nifty, Bank Nifty crucial levels REVEALED; Anil Singhvi explains key reasons behind massive fall

ISRO First Mission in 2021: Indian rocket to launch Brazilian satellite, PM Modi picture on spacecraft, space privatisation and more

7th Pay Commission Latest News: Check out these vacancies notified by UPSC; salary up to Rs 1,77,500 plus DA and other allowances

  • India News
  • World News
  • Companies News
  • Market News
  • Personal Finance News
  • Technology News
  • Automobile News
  • Small Business News
  • Income Tax Calculator
  • Live TV
  • Videos
  • Photos
  • Author
  • Rss Feed
  • Advertise with us
  • Privacy Policy
  • Legal Disclaimer

Latest Trending Updates

  • EPFO
  • Budget 2020
  • Income Tax Return
  • Auto Expo 2020
  • Home Loan
  • Business News

Trending Topics

  • Income Tax
  • income Tax Calculator
  • 7th Pay Commission
  • Reserve Bank of India
  • GST
  • Latest Business News

Follow us on

zeebiz
zeebiz

Partner Sites

  • Zee News
  • Hindi News
  • Marathi News
  • Bengali News
  • Tamil News
  • Malayalam News
  • Gujarati News
  • Telugu News
  • Kannada News
  • DNA
  • WION
Copyright © Zee Media Corporation Ltd. All rights reserved