5 New Pf Rules 2019-2020 ~ Marriage, Home Loan, Medical, Education, Retirement

PF Withdrawal Rules 2019: PF or EPF is often one of the biggest savings of life for people in government or private jobs. After retirement or leaving the job, the first concern of the employee is to withdraw his / her PF Balance and invest it in a better way. We have given you the information in the previous article about the new rules for the PF cut. we are giving information about the new pf withdrawal rules 2019.

5 New Pf Rules 2019-2020 ~ Marriage, Home Loan, Medical, Education, Retirement

There are following Five Rules for When you Withdrawal Epf Balance

1. After Retirement (on attaining the age of 55 years), you Get Full money
2. PF Withdraw Full Money Even After Out of a Job for Two Months
3. Tax Rebate is available on the Entire Amount and Interest of EPF
4. Can I get advance from the PF account as per requirement?
5. Special advance facility for a home purchase

1. After Retirement (on attaining the age of 55 years), you get full PF Balance Withdrawals

You can withdraw all the money of EPF on retirement (after completing the age of 55). However, for the employees who have reached the final stage of the job, some relief has been given in the rule of withdrawing money. Employees who have crossed 54 years of age can withdraw up to 90 percent of their PF. This rule is for those who remain attached to the job until retirement. The rule is slightly different for those who have retired from service before retirement, which we have explained further.

2. PF Withdraw Full Money Even After Out of a Job for Two Months

Relief is given in the rules for withdrawal of PF money, in case of job leave before retirement.

• If the employee does not get work for 2 months after leaving the job or if he does not join a new job, he can still withdraw his entire PF.
• Up to 75% of PF funds can be withdrawn 1 month after being laid off. In the same sequence, if he remains unemployed for 2 consecutive months, then he is entitled to withdraw 25% of the remaining amount and final settlement.
• Well if you meet certain conditions then you can easy to Withdraw your epf balance.

3. Tax Rebate is Available on The Entire Amount and Interest of EPF

PF gets an all-round tax Rebate. The money that goes to the PF gets Tax exemption under section 80C. There is no tax on the interest accrued. And the amount of maturity available in the end is also tax-free.

• However, tax exemption will be available on PF withdrawal only if he has completed the job for at least 5 years. These five years will be calculated by adding all his previous jobs. For example, if an employee has quit after 2 years of work in a company, then after completing 3 years in the next company, 5 years of his job will be considered.
• If the employee withdraws the PF money before the completion of the job for five years, then TDS will be deducted from the amount received by him, the remaining amount will be given to him.
• No TDS is deducted for transferring money from one PF account to another PF account on changing jobs. 
• The government has increased the limit of deducting TDS on PF money from 30 thousand to 50 thousand.

Read Also: How To epf balance transfer from the previous employer

4. Can I Get Advance from the PF account as Per Requirement?

An employee can also get an advance from his PF account on the need to build or buy a home, health, marriage or education-related. 

• Advance can also be taken from the PF account for the Repayment of the existing homeland.
• You can also take advanced treatment for yourself or any family member.
• You can also take a loan from the PF account for your marriage or marriage of your son, daughter, brother, sister.
• The loan can also be taken from your PF account for the higher education of your son or daughter (Studying beyond Class 12).

5. Special Advance Facility for a Home Purchase

The EPFO ​​has enforced the rule to withdraw up to 90 percent of its PF deposits to its members to buy houses. Not only this, but the use of the PF account has also been approved to fill the loan installments (EMIs) for the house.

However, this facility can be provided only to those employees who will be members of the registered housing society with at least 10 members. Also, his PF account must also be at least three years old. That is, you can avail of this facility only after completing the job for at least three years.

On acceptance of your application for this facility, the EMI money of the house will be sent directly by EPFO ​​to the account of the society, promoter or builder giving the house. This type of house can be done by the employee, government scheme house, co-operative society house or private builder, by taking the house from the promoter, etc.

In this artical, we can Covers Read pf deduction rules 2019,epf rules for the employer, new pf rules 2019, pf amendment 2019, new amendments in provident fund 2019, employees provident fund act latest amendments 2019

When can I withdraw my epf money? 

You should take care of certain terms and conditions to partially withdraw the PF amount. You can see them mentioned below.

(1) Withdraw Reason For the Marriage of His or Her Son/ Daughter or Brother / Sister

• Withdrawal Limit: 50 % of the total Deposits with the employee's Share in EPF.
• How many years of service must be completed: 7 Years

(2) Withdraw Reason For Education For the employee's own Education or for His Children Studying After Class 10

• Withdrawal Limit: 50 % of the total deposits with the employee's share in EPF. 
• How many years of service must be completed: 7 Years

(3) Withdraw Reason For Purchase of land/purchase or construction of a house: To buy land, buy or build a house. Such land or house should be in the name of the employee or jointly owned by the spouse

• In relation to land: 24 times the monthly salary that an employee gets (including dearness allowance)
• In relation to the household: 36 times the monthly salary paid to an employee (including dearness allowance)
• How many years of service must be completed: 7 Years

(4) Withdraw Reason Home loan payment

• The land or house should be in the name of the employee or jointly owned by the spouse.
• Documents related to housing loan will also have to be submitted before the EPFO
• Total deposits(pf balance) in the PF account of the employee. Interest interest. Should be more than 20 thousand rupees. If the wife's PF account is also deposited with more than 20 thousand rupees, then you are eligible to apply for this category of loan.
• Up to 90% of the total contribution made by the employee and employer to the EPF account.
• How many years of service must be completed:10 years

(5) For home improvement or Maintenance: The house should be in the name of the employee or jointly owned by the spouse / Wife 

• 12 times the monthly salary paid to an employee (including dearness allowance)
• How many years of service must be completed: 5 Year

(6) Personal Needs: For any personal needs of the employee before retirement.

• Up to 90 % of the total deposits(epf balance). Including interest
• On attaining the age of 57 years (as per new amendment in the pf rules 2019-2020)