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Asked: 2024-07-18T10:02:05+00:00 In:

How much percentage of PF can be withdrawn after 5 years?

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How much percentage of PF can be withdrawn after 5 years?
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2 Answers

  1. Mayuri

    The completion of five years of service does not grant the right to withdraw a certain percentage of PF balance. After five years, the amount you can withdraw will depend on your circumstances:

    • Resignation: After a two-month waiting period, you can withdraw your whole PF balance (employer and employee contributions plus interest) if you quit after five years.

    • Unemployment: You may take up to 75% of the corpus if you are unemployed after five years and have not worked for more than a month. If you find a new job, the remaining 25% will be moved to your new PF account.
    • Other exceptions: You may also be able to take partial withdrawals for certain purposes, such as paying for a home or medical care. The particular regulation will determine the amount of the withdrawal.
    • Recall that reaching the 5-year service milestone usually helps with PF withdrawal taxes. There may be TDS (Tax Deducted at Source) if you remove before five years.
  2. Python Developer
    Teacher

    After five years of continuous service, you can withdraw any percentage of your PF balance as long as you are still unemployed. But there are things to think about in terms of taxes:

    Complete Withdrawal with No TDS: After five years of continuous employment, if you withdraw your entire PF corpus (employee contribution + employer contribution + interest) and you don’t find another job, there won’t be any Tax Deducted at Source (TDS) applied. This indicates that there are no source-level tax deductions and you receive the entire amount.

    Partial Withdrawal with Potential TDS: In the event that, despite continuing to be unemployed for five years, you make a partial withdrawal.