The Pension Fund Regulatory and Development Authority (PFRDA) has allowed subscribers to withdraw the entire amount without purchasing any pension plan in case the pension fund amount is less than Rs 5 lakh.
New Delhi: If you have been in the job for less than five years and in the meantime withdraw money from the PF account, then the withdrawal of money from the Provident Fund (PF) will not be taxed.
If you have left the job then you can withdraw money from PF account after some time. However, as per the EPF rules, a member can withdraw 75% of the total amount deposited during the job after one month of leaving the job. If the person remains unemployed for more than two months, then he can withdraw the entire amount from the PF account.
PFRDA has given permission
If the EPFO subscriber completes 5 years of service and he withdraws PF, then there will be no income tax liability on him. The period of 5 years can also be one or more companies amalgamated. It is not necessary to complete 5 years in the same company. The Pension Fund Regulatory and Development Authority (PFRDA) has allowed subscribers to withdraw the entire amount without purchasing any pension plan in case the pension fund amount is less than Rs 5 lakh.
At present, subscribers of the National Pension Scheme (NPS) have to buy a pension scheme offered by insurance companies at the time of retirement or if they have a pension corpus of Rs 2 lakh on attaining the age of 60 years. He can withdraw the remaining 60 percent amount.
The pension regulator has said in a gazette notification that the premature withdrawal limit under NPS has been increased from Rs 1 lakh to Rs 2.5 lakh. The regulator has also raised the maximum age to enter NPS from 65 years to 70 years while the exit age limit has been raised to 75 years.
EPFO extends deadline for filing PF returns including Aadhaar verification of employees
The EPFO, which operates the retirement fund, on Tuesday extended the implementation of the order to file provident fund (PF) returns by verifying the Universal Account Number (UAN) of the Provident Fund Fund of the employees with the Aadhaar number till September 1, 2021. has been postponed.
This will give more time to the employers to link the Aadhaar number of their employees with their PF accounts or UAN number. Earlier, EPFO had set a deadline of June 1, 2021 for this work.
Employees Provident Fund Organization According to the office order issued by EPFO, the deadline for filing electronic challan i.e. Receipt of PF Return (ECR) with Aadhaar verified UAN has been extended to September 1, 2021.
The EPFO decided to make linking of Aadhaar number mandatory after a notification in this regard was issued by the Ministry of Labor. The Labor Ministry issued a notification in this regard on May 3, asking the ministry and the bodies working under it to collect Aadhaar numbers from the beneficiaries under the Social Security Code.
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