For keeping the future secured of the employees, the EPFO is made, EPFO is the employees provident fund organisation and it allows the employees to withdraw their funds from the account after being unemployed. It is very useful because it is the amount which can be used either for managing their expenses or to start their business.
According to the rule of EPFO, the employees who are unemployed can avail the non refundable advance up to around 75% of their balance once they become unemployed and complete the duration of a month. You also do not have to submit any document related to it for getting the money.
The benefit is that if you take the advance from your PF account, then the membership will remain intact and will allow you to transfer the left over balance to your new employer. If it is active, you also can use it to draw pension for the retirement.
If you are jobless for more than or for two months, then you can also withdraw the whole PF corpus and can close your EPF account. But it does not apply to those women who have resigned from their jobs in order to get married.
If you are above 54 years, then you are allowed to withdraw up to 90% of your PF balance anytime once you cross 53 years but should be done within one year of retirment on superannuation.
THE Ceo of cleartax, Archit Gupta told to Livemint- if the EPF withdraw is done after the 5 years of the services. The amount you withdraw will be exempted from the tax. However, if it is done before the 5 years, it is fully taxable.
“However, a withdrawal made before 5 years due to the ill health of the employee or discontinued business of the employer or for any other reason beyond the control of the employer, the same is exempt from tax,” he added.