Tax free withdrawal from PF account


How can tax free withdrawal from employee PF account be made? Will it be possible in case of minor gaps in service too?


Employees having 5 years of continuous service can make tax-free withdrawal from their PF account. However, if the withdrawal made before 5 years of service is more than Rs.50,000 or Form 15G or Form 15H is not submitted it is subject to tax or TDS.

If you withdraw from EPF before completing 5 years of continuous service, TDS will be deducted. In calculating 5 years of service, your tenure with the previous employer is also included.

Listed below are cases when withdrawals from one’s EPF account will not be subject to tax.
Due to unavoidable illness
For transfer of funds
If the total PF amount is less than Rs.50,000
Makes a withdrawal using Form 15G or Form15H
After 5 years of continuous service

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