InvestorQ : I am planning to withdraw money from my EPF account but wanted to know if the withdrawal will be taxable as my EPF account is just 3 years old?
sarah Leo made post

I am planning to withdraw money from my EPF account but wanted to know if the withdrawal will be taxable as my EPF account is just 3 years old?

Answer
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vidhya Laxmi answered.
5 months ago


To ease the liquidity pressure due to the lockdown, government has allowed withdrawal from Employees’ Provident Fund (EPF) account. You are right that funds withdrawn from EPF account before completion of five years of continuous service attract tax. However, there are some exceptional cases like medical emergencies where this money is not taxed. In this specific case, the government has ordained that any such withdrawal made from the EPF account during the COVID-19 period, will be entirely tax-free in the hands of the individual. However, in the COVID-19 situation, there are been some limits imposed by the government. For example, you can withdraw the lower of 3 months salary or 75% of the total EPF balance in your account. Of course, you are free to withdraw lower amounts. This entire process can be handled online without any physical paper work.