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Under the new system, employees can withdraw PF amounts for various personal needs, such as children’s education, marriage, or house construction, in addition to medical emergencies. This was not possible under the earlier rules
With just one click, PF fund withdrawal can now be done from home. (Local18)
For lakhs of government and private sector employees, the Provident Fund (PF) is not only a safe savings medium but also serves as a financial lifeline during difficult times. Earlier, withdrawing money from the PF fund was a lengthy process – requiring a letter from the employer, bank verification, and final approval from the PF office. However, the government has now made this entire system fully digital and much simpler.
No More Queues
There is no longer any need to queue at offices or visit the bank to withdraw money from your PF account. With just one click, PF fund withdrawal can now be done from home. This change comes as a major relief for those who urgently require funds during emergencies.
Chartered Accountant Pradeep Hisaria explains that, under the new system, employees can withdraw PF amounts for various personal needs, such as children’s education, marriage, or house construction, in addition to medical emergencies. This was not possible under the earlier rules. The new facility not only provides ease but also ensures that individuals have immediate access to their hard-earned money.
The government has revised the PF rules, though one condition remains: if an employee has worked in a company for less than five years and withdraws more than Rs 50,000, Tax Deducted at Source (TDS) will apply.
In case of a medical emergency, up to six times the basic salary can be withdrawn. For marriage, up to 50% of the contribution can be withdrawn after completing seven years of service.
If an employee becomes unemployed for one month, they may withdraw up to 50% of their PF amount. After two months of unemployment, the entire fund may be withdrawn.
To enhance user experience, the government has also developed a dedicated portal for this process. In future, plans are underway to enable fund withdrawals via digital platforms such as ATM cards and UPI.
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