PF News: Big news related to PF withdrawal came to the fore, read by clicking!
The Modi government has made new changes in the budget before the elections. The tax slab has been increased and with it, the rules of EPFO have also changed. Now you will not be able to withdraw money from EPFO continuously as before. You will also have to pay tax on withdrawals. But don't take tension. Understand in simple words when you will be taxed and when you will not be taxed under the new rules.
The merger of pf accounts is necessary
When you join the job, you are given a UAN number by the company. This number is proof that you have an account with EPFO. It needs to be activated. Your company opens a PF account under this UAN, to which both you and your company contribute every month.
When you change jobs, you give your UAN to the new company, which opens another PF account under the same UAN. It is necessary to merge your previous PF account with the new account opened later.
When to pay tax?
If you withdraw money from your PF account after 5 years then you will not be taxed. If you withdraw your PF before the completion of 5 years, then it may attract tax. Withdrawal from Provident Fund before 5 years and 20% tax will be deducted if the customer's PAN card is not linked. On the other hand, if your PF account is linked to your PAN, then TDS will be deducted at the rate of 10%.
These people don't have to pay tax
If the employee leaves the job due to ill health or the business stops due to loss of employment of employees or employees, then they will not have to pay tax while withdrawing PF. Secondly, there is no tax to be paid on the transfer of money from one account to another.