EPFO Coronavirus Relief: Employees Can Withdraw EPF Without Tax Implications

The Employees' Provident Fund Organisation (EPFO) has allowed the registered employees to withdraw their provident funds to fight against the problems created by the outbreak of coronavirus being faced by the registered employees. The registered members can withdraw a total of worth three months of their salary and dearness allowance or upto 75% of their total account balance whichever is lower. The members are not required to deposit the amount later after the withdrawal. The members working in an exempted or private company will have to contact the employer for the withdrawal.

The announcement was made by the EPFO on 26th March 2020 after which they have received more than 1.4 lakh withdrawal requests and the organisation has provided a total of more than Rs. 280 crores to the requesters. The organization said that they are trying to issue the demanded amounts within 72 hrs of the request.

The members are given an option to withdraw the amount online. To withdraw the amount, the member is required to have an activated Universal Account Number (UAN). The documents like Aadhaar Card Number and the registered bank account number along with IFSC code of the bank, should be linked with the UAN. No other formalities and documents are required to be submitted for the withdrawal.

The organisation suggested that the members should only withdraw the amount only if they are facing any kind of problems only. The process of withdrawal is made easier by the department but this should not be used unnecessarily. The purpose of the fund is to provide long term financial benefits to the employees at the time of their retirement. The amount deposited as PF is tax-free that will help in reducing the tax liability of the member easily so a wise and informed decision should be made by the member. So, you can fill your income tax return filing through Gen IT Software that is India's most popular software. The organisation advised the members that they should be withdrawing the amounts from their PF accounts only if no other option is available to them.

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