PF Withdrawal Status: The Employees’ Provident Fund Organization (EPFO) provides a Provident Fund (PF) account for central and state government employees and an EPS account for private sector employees. For many government and private employees, the money in their EPF savings account balance is the only amount they can use in times of financial crisis such as job loss, medical emergencies, etc. EPFO Members Are Allowed to Make a PF Withdrawal Under Certain Conditions Unfortunately, there are cases when this can actually result in money being lost.
Speaking of the money lost during the PF withdrawal, SEBI-registered tax and investment expert Jitendra Solanki said, “EPF account holders have been found to apply for their PF deduction at the time of job loss, especially if they are in the initial stages At this point, if your EPF account is less than five years old, your PF payout will be subject to income tax collection, so you will lose money in your PF account as the amount deposited in your given bank account Money in the mail is income tax deduction. “
Not only the PF disbursement within five years after opening the account is taxed. In what will worry PF account holders, even their pension funds will be negatively impacted after this PF payout.
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Highlight how an EPF Account Holder can lose pension benefit after EPF payout; The SEBI-registered tax and investment expert added: “It is important that the EPF account is at least 20 years old at the time of retirement in order to be eligible for a pension benefit. In the current EPFO rules, the EPF- Deduction or the PF deduction your own entitlement to a pension after retirement. “
Mumbai-based tax and investment expert Balwant Jain said on the EPS pension calculator: “When an EPF account is opened, it receives 12 percent of the employee’s base salary as a monthly EPF contribution, which the employer deducts at the source, the employer pays In the case of the employer, the EPF contribution of 8.33 percent is transferred to the EPS account or the pension account, while the remainder is transferred to the EPF account of At the time When the EPF was paid out, it was found that the staff believed they had all of their EPF in their account, which is incorrect, their EPS balance is still there and to receive this money they must claim it If If the employee does not want to withdraw this EPS account balance, he can link it to the opening of his new EPF account with the new employer. “