BUSINESS
Withdrawal: How much money can you withdraw if you have ₹1 lakh in your PF account? Learn the new rules
While employed, you may need money for things like illness, your child's education, marriage, or buying a house. In such situations, the amount deposited in the Employee Provident Fund (PF) can be useful. According to the new EPFO rules, eligible employees can withdraw up to 75% of their PF balance. However, the actual amount that can be withdrawn depends on the relevant reason and eligibility criteria.
If you have Rs 1 lakh in your PF account, how much money will you get?
If you have an eligible balance of Rs 1 lakh in your PF account, then 75 percent of the amount is Rs 75,000. The remaining 25 percent is Rs 25,000.
According to these PF rules, if you have ₹2 lakh in your account, you can withdraw ₹1.5 lakh, leaving you with ₹50,000. Similarly, if you have an eligible balance of ₹3 lakh, you can withdraw ₹2.25 lakh, leaving you with ₹75,000. This calculation assumes a maximum limit of 75%. Actual withdrawals may be lower depending on the rules for the respective category.
Withdrawal rules for illness, studies, and marriage:
According to the information provided, 12 months of service is required for partial withdrawal. It states that a maximum of three withdrawals are allowed in a financial year for illness, ten withdrawals for studies, and five withdrawals for marriage. The relevant limits and eligibility conditions will apply each time.
Can PF be used for housing? PF
funds can be withdrawn for purchasing a house or plot, building a house, repaying a home loan, and repairing a house, subject to certain conditions. A minimum service period and a limit on the number of withdrawals also apply in this category.
What are the rules during unemployment?
According to the information provided, during unemployment, an eligible member can withdraw up to 75% of their PF balance. The remaining 25% can be withdrawn after 12 months of unemployment.
PC: Mint
