CURRENT AFFAIRS

Detailed explanation-1: -Further, one should note that if the withdrawal amount exceeds Rs 50, 000, it will be liable for a TDS (Tax Deducted at Source) at the rate of 10 per cent. If the withdrawal is made after completing five years, then it is completely tax-free.

Detailed explanation-2: -No Tax is levied on the amount deposited and withdrawn from the Provident Fund account. This is because Provident Fund account comes under the EEE bracket i.e. Exempt on Investment, Exempted Interest and Exempt on Maturity.

Detailed explanation-3: -According to the new rules, PF account holders can withdraw money equivalent to three months of their basic salary plus dearness allowance or 75% of the net balance in their PF or EPF account, whichever is lower. This will be taken as a non-refundable deposit. These withdrawal claims can be raised online.

Detailed explanation-4: -An account holder can also lower their tax liability on premature withdrawal of their PF amount. Usually, withdrawals are liable for TDS. But, according to the revised EPF withdrawal rules 2022, withdrawal of funds after a minimum of 5 years of service will attract no TDS.