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Before withdrawing money from PF account, know whether you will have to pay tax, know what are the EPFO rules
EPF Withdrawal: Many people are confused about whether the amount deposited in EPF fund is taxable or not. Today we will tell you through this article when is tax levied on the withdrawal of money from EPF fund? Apart from this, also know about the rules related to EPFO. Let us tell you that along with the employee, the company also contributes to the PF account.
Employees Provident Fund also known as Provident Fund or PF. This is the most popular scheme for continuing income even after retirement. Employees deposit 12 percent of their salary in this fund every month. Along with the employees, the company also contributes 12 percent. Interest is also given by the government on the amount deposited in this fund.
The income Tax Department collects tax on income received from bank accounts like interest, house rent, etc. Well, similarly the amount deposited in the PF account is also taxed. Earnings from EPF accounts are taxed under many different circumstances. Today we will tell you when the is tax levied on withdrawing money from PF?
According to EPF rules, whenever an employee withdraws money from a PF fund, he has to fulfill certain conditions. The entire amount from the PF fund can be withdrawn only after retirement. EPFO has set 55 years for this. Any employee can withdraw only 90 percent of the amount from the PF fund before retirement.
