Skip to main content

Provident Fund Premature Withdrawal

 
 

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 Normally it is advised that best use of PF money is post retirement and it should be withdrawn only after the retirement.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  • Only 3 times during your whole employment, money can be withdrawn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.

Invest Rs 1,50,000 and Save Tax under Section 80C. Get Great Returns by Investing in Best Performing ELSS Mutual Funds

Top 10 Tax Saving Mutual Funds to invest in India for 2016 or Best 10 ELSS Mutual Funds in india for 2016

1. BNP Paribas Long Term Equity Fund

2. Axis Tax Saver Fund

3. Franklin India TaxShield

4. ICICI Prudential Long Term Equity Fund

5. IDFC Tax Advantage (ELSS) Fund

6. Birla Sun Life Tax Relief 96

7. DSP BlackRock Tax Saver Fund

8. Reliance Tax Saver (ELSS) Fund

9. Religare Tax Plan

10. Birla Sun Life Tax Plan

Invest in Best Performing 2016 Tax Saver Mutual Funds Online

Invest Online

Download Application Forms

For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call

---------------------------------------------

Leave your comment with mail ID and we will answer them

OR

You can write to us at

PrajnaCapital [at] Gmail [dot] Com

OR

Leave a missed Call on 94 8300 8300

Popular posts from this blog

ULIP Review: ProGrowth Super II

  If you are interested in a death cover that's just big enough, HDFC SL ProGrowth Super II is something worth a try. The beauty is it has something for everybody — you name the risk profile, the category is right up there. But do a SWOT analysis of the basket, and the gloss fades     HDFC SL ProGrowth Super II is a type-II unit-linked insurance plan ( ULIP ). Launched in September 2010, this is a small ticket-size scheme with multiple rider options and adequate death cover. It offers five investment options (funds) — one in each category of large-cap equity, mid-cap equity, balanced, debt and money market fund. COST STRUCTURE: ProGrowth Super II is reasonably priced, with the premium allocation charge lower than most others in the category. However, the scheme's mortality charge is almost 60% that of LIC mortality table for those investing early in life. This charge reduces with age. BENEFITS: Investors can choose a sum assured between 10-40 times the annualised premium...
Read more

Section 80CCD

Top SIP Funds Online   Income tax deduction under section 80CCD Under Income Tax, TaxPayers have the benefit of claiming several deductions. Out of the deduction avenues, Section 80CCD provides t axpayer deductions against investments made in specific sector s. Under Section 80CCD, an assessee is eligible to claim deductions against the contributions made to the National Pension Scheme or Atal Pension Yojana. Contributions made by an employer to National Pension Scheme are also eligible for deductions under the provisions of Section 80 CCD. In this article, we will take a look at the primary features of this section, the terms and conditions for claiming deductions, the eligibility to claim such deductions, and some of the commonly asked questions in this regard. There are two parts of Section 80CCD. Subsection 1 of this section refers to tax deductions for all assesses who are central government or state government employees, or self-employed or employed by any other employers. In...
Read more

How to Pick Top Performing Mutual Fund Schemes

Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Buy Gold Mutual Funds Leave a missed Call on 94 8300 8300   How to Pick Performing Schemes  Funds that continue to stay in the top grade of performance over longer periods are the ones to bet on, advise investment experts   The mutual fund performance charts of the past few months make for an impressive reading. Funds across all categories boast of stellar returns. Sample this: The mid and small cap category has averaged 77 percent return over the past 12 months, with the best fund delivering a staggering 120 percent. The tax-saving funds also average an impressive 51 percent, including a fund which has soared 92 percent. Many of the table-toppers are funds of proven quality and track record. However, there are also schemes that are not that well-known. Some of these have rarely made it to the performance charts in the past, yet, of late, they bo...
Read more

What is Electronic Clearing Service (ECS)?

  As the name suggests, it's an electronic process through which money can be transferred from one bank account to another. According to RBI, this mode is usually used for regular payments and receipts, like distribution of dividend, interest, salary, pension etc. This mode is also used for collection of bills for telephone, electricity, water, various types of taxes, payment of EMIs , investments in mutual funds , payment of insurance premium etc. There are two types of ECS , like most other banking transactions, ECS credit and ECS debit. An ECS credit is used by a bank account holder , usually a large company or an institution for services like payment of dividend, in terest, salary, pension etc. If your mutual fund pays you dividend to your bank account, of all probability it is being paid through ECS credit.ECS debit, on the other hand, is used when a company or an institution is getting money from a large number of people. For example if you are investing in a mutual fund sc...
Read more

Bharat Bond ETF

Top SIP Funds Online   The government of India has paved the way for the launch of India's first corporate bond ETF called as Bharat Bond ETF. Edelweiss Mutual Fund will be managing it. The fund is mandated to invest in AAA-rated bonds of select public sector companies (see the table 'List of constituents and their proportions in the portfolio'). The government has a threefold objective behind launching this product. One, to deepen the liquidity of the Indian debt markets and provide a gateway for easy retail participation. Two, to solve investors' dilemma of picking premium bonds. Lastly, to help the underlying government-owned companies raise funding for their operations. But does it make sense for you, the investor, to invest in it? Lets find out. What is the product? As the name suggests, it is an exchange-traded fund which will be listed on a stock exchange from where its units can be bought and sold post launch. It will have two variants - one maturing in 3 ye...
Read more
Related Posts Plugin for WordPress, Blogger...
Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now