Dr M Khalid's global village blog

Here are 10 important things one should know about EPF withdrawal: As per the latest rules set by the EPFO, a subscriber can apply for  EPF withdrawal  only if he or she has been unemployed for at least 2 months. The amount that an EPFO subscriber receives upon withdrawal is eligible for tax exemption if he or she had contributed to the EPF for more than 5 years. If a subscriber transfers the  EPF balance  from the account maintained with the old employer to the new one, then it will be considered to be a continuous employment. When an employee loses the job due to a reason that is out of his or her control, like critical illness or layoffs due to an organisational shutdown, the withdrawal will not be taxed. If the EPF is withdrawn before the completion of 5 years, then the withdrawn sum is taxable during the same year. In the next assessment year, the EPF amount has to appear in the tax return. The contribution to PF by the employer and the interest earned on that sum is also taxable....