Provident Fund Premature Withdrawal – Conditions & Limits for Education, Medical

Provident Fund Premature Withdrawal

Every month salaried employees keep on depositing small part of money in provident fund. Normally it is advised that best use of PF money is post retirement and it should be withdrawn only after the retirement. But if you are stuck in some family emergencies or need money on an urgent basis then withdrawal of provident fund money before maturity can be done. Here are few scenarios when you can withdraw PF money before maturity and conditions under which you can withdraw:

  • Education or marriage
  • Buying land
  • Building flat or house
  • Repayment of home loan
  • Medical emergencies

Conditions for Early Withdrawal for Education or Marriage:

  • Minimum 7 years of employment is over
  • Marriage of your siblings – for this you need to provide verification documents such as marriage card
  • For verifying education of your kids you need to provide  education fees document

How much money you can withdraw:

  • Only half of the provident fund money can be available during the withdrawal date can be taken out
  • Only 3 times during your whole employment, money can be withdrawn

Conditions for Buying Plot Using PF Money:

  • Minimum 5 years of employment is over
  • The plot which you are going to buy should be on your name or your partner’s name or must be jointly registered

Withdrawal Limit:

  • You can withdraw 24 times of your monthly salary at the time of withdrawal.
  • Only 1 time during your employment you can withdraw the money before maturity

Conditions of Withdrawing for Flat / House:

  • Conditions are similar as mentioned above for buying plot

Withdrawal Limit:

  • You can withdraw 36 times of your monthly salary at the time of withdrawal.
  • Only 1 time during your employment you can withdraw this money before maturity

Conditions for Using Provident Fund Money for Repayment of Home Loan:

  • Minimum 5 years of employment is over
  • The plot which you are going to repay home loan; that flat or house should be on your name or your partner’s name or must be jointly registered

Withdrawal Limit:

  • Limits and conditions are similar to that applied for flat or house as mentioned above

Withdrawing PF Money for Medical Expenses:

  • For expenses of you, your partner/children/parents
  • No minimum employment year limit
  • Proof of hospitalization or leaves taken during that period should be submitted
  • ESI – the certificate given by your employer which states that employee is not receiving benefits of ESI must be given as a proof

Withdrawal Limit:

  • 6 times of your monthly salary and total money deposited in the PF whichever is lower of these two can be withdrawn
  • You can withdraw the money before maturity unlimited times

Is Prematurely Withdrawn Provident Fund Money Taxable?

Yes, it is taxable provided money is withdrawn within 5 years of your employment. If money is withdrawn after 5 years of employment then it is not taxable. Read more on VPF – Benefits, Limit, Contributions

8 Comments
  • Diwkar Singh Chauhan

    Hi,

    I want to repayment education loan, for that i want to withdrawal my pf. I have been worked for 2 year in previous employer. This is possible?

  • SURAJ KUMAR

    Dear sir,
    I want to be buy a plot by PF loan,I am working over 6 yrs. my basic salary is 13120.00, So how many withdrawal amount from PF ?

  • Shyamal Mondal

    Dear sir,
    I want buy a plot by PF loan,My working over 5 yrs.my basic salary is 8500.00,so how many withdrawal amount from PF ?

  • Ankit Singhal

    Hi,
    What are norms and conditions of PF withdrawl when you leave an organisation and join the new one?

    I came to know that when we leave switch a job then we can withdraw the PF, now what the conditions in such withdrawal and is it taxable?

  • rakesh ranjan swain

    Can I withdraw my pf ? Although I had been worked just for 5months &22days ….

  • PRASHANT

    I HAVE WITHDRAWN MY EPF BEFORE 5 YEARS. HOW CAN I CALCULATE BREAKUP FOR TAX PURPOSE. (EMPLOYEE CONTRIBUTION+EMPLOYEE CONTRIBUTIONS AND INTEREST BREAKUPS)??

    • AllOnMoney.Com

      Hello Prashant,

      Substract the EPF amount received in an year from the income received in the same financial year. For e.g. If your annual income in 2010 -2011 is 3,95,000 and you’ve received Rs. 12000 in EPF and contributed Rs. 18000 in LIC/NSC or any other scheme, then your tax breakup would be 3,95,000-30000 = 3,65,000. In the same way you can re-calculate the income tax breakup for each financial year and file the revised income tax return for each financial year.

      Hope this answers your query. Thanks.

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