The Employee Provident Fund or EPF launched by EPFO (Employee Provident Fund Organization), is a scheme that helps employees to save a small fraction of their salary every month, which can be saved for the retirement life. Investments made under EPF are tax-free.
For some important purposes, an EPF investor can withdraw money from EPF account. The partial withdrawals will be computed on the basis of EPF account holders monthly salary or contributions made to the account so far.
Here are those 8 major reasons for which you can take out the money from EPF account.
1. For Marriage Purpose
A working individual can withdraw money from EPF account for the marriage of him/her or of sibling and children. The person who is withdrawing the money should have completed a minimum of seven years of service to withdraw the 50% of his or her contribution in EPF account. Aadhaar Is Mandatory For EPF Pension Scheme Now
2. Purchase/Construction of House or Flat
A salaried person can withdraw cash from an EPF account for the purpose of either construction or purchase of a plot. For this, the property must be registered in his or her name, spouse or be jointly held. Service required for withdrawing money is a minimum of five years. An amount which is 24 times the salary of the account holder can be withdrawn if the account holder has minimum 5 years. For construction of a house, 36 times of the salary of an account holder can be withdrawn. Withdrawal purchase or construction of house or flat can be done only once during the service of an account holder.
3. Repairs/Alteration of existing house
A salaried person wishes to withdraw from an EPF account for the purpose of house repairing, renovation or alteration. For this the house should be registered in his or her name, spouse or be held jointly. A minimum of five years of service is required to withdraw about 12 times of the monthly salary of an account holder.
4. Repayment of existing home loan
Money can be withdrawn from EPF account for repayment of the home loan. For this, the house should be registered in the account holders name, or spouse or be held jointly. If a salaried person wishes to withdraw cash from an EPF account for the purpose of home loan repayment, a minimum of 10 years of service is required. Up to 36 times of the salary of an account holder can be withdrawn.
5. For medical treatment
A salaried person can withdraw from EPF account for medical treatments of self, parents, spouse and children. Amount up to either six times of account holders monthly salary or total corpus towards medical treatment can be withdrawn.
6. Miscellaneous reasons
Apart from the above-mentioned reasons, EPF account holders can withdraw from their EPF account for various other reasons. In case of premature retirement as a result of any physical or mental disability, migrating abroad for the sake of better employment or settling down in a foreign country, individuals can choose to withdraw from their EPF account
7. For education of children
For post matriculation education of son/daughter, EPF account holder can withdraw. For this minimum 7 years of service is needed. 50% of employee share with interest can be received. A certificate regarding course of study and estimated expenditure from Head Of The institution, where children are studying should be submitted for availing this. 11 Reasons Why You Should Have A PF Account?
The EPF account holder must be 54 years old to withdraw up to 90% of the corpus of his or her provident fund account. 6 Government Backed Investment Schemes For Best Return And Less Risk