Rule & Tax Implications to Withdraw your Employee Provident Fund

Employee’s Provident Fund (EPF) is a benefit offered to an employee which they can enjoy after their retirement. If you are planning to withdraw your provident fund any sooner, then you must know the rules for the same.

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  • EPF withdrawal does follow a procedure with certain rules and regulations. There are different tax implications for different cases, and one can only withdraw the 75% funds at a time.
  • If you remain unemployed for continuous two more months, then you can withdraw the remaining 25%.
  • If you have a record of consecutive five years of service, then you are not eligible to pay any tax and thus can enjoy the tax-free withdrawal.
  • If in case you are quitting your job before five years of service or planning to withdraw the funds before five years, then your amount will be taxable as per the rules.
  • A TDS of 10% is deducted if you have submitted a PAN to the EPFO authorities, while if not then 34.6% TDS is deducted. But this is applicable only in case of withdrawal before 5 years of service.
  • No tax is applicable if you are terminated due to any of the reasons which are beyond your control, no matter you have completed five years or not.


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