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 Normally it is advised that best use of PF money is post retirement and it should be withdrawn only after the retirement.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- Only 3 times during your whole employment, money can be withdrawn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