EPF is one messy system which has been made more messier with new rules now. I have multiple queries
- I have worked in multiple companies so far for almost 4.5 years where I had PF accounts. Currently I am working in a small set up with less than six employees and therefore no PF account. My first doubt is whether there is any way i can withdraw EPF without attracting taxes ?
- In case i cannot withdraw EPF without taxes, what are my options to avoid paying taxes? can i withdraw the pf account whenever i am buying a house? what will be the eligibility for the same and what % of PF can you withdraw for the same ?
- I read in your blog that i can pay LIC premiums or Home EMI using EPF corpus. How does that work? lets say my emi is 50k per month and EPF corpus is 10lakhs. can i pay the 20 months emi using my epf corpus. Similarly for LIC premiums lets say my premium annual is 1 lakh and EPF corpus is 10 lakhs.. for next 10 years can i pay the premiums using EPF? will there be no tax incidents on any of these two arrangements ?
- Also i read that now EPF accounts are considered inoperative only after you reach 58 years of age versus previously 3 years from the day of last contribution. This is a great thing. But i think interest accrued will be taxable in case there is no contribution. lets say there is no contribution to my epf account till 58 years? will the interest accrued from now till 58 years be taxable whenever i withdraw post that ?
Thanks in advance for clearing my doubts.
- You can’t skip form paying tax. You can avoid tax only if in your current employment or in future employment you use the same EPF account and tenure of your total employment crosses more than 5 years, then you can save tax.
- Simply they pay from your accumulated corpus which comes with certain minimum service conditions.
- In case i cannot withdraw the taxes…. what are my options? Should i just let the money be idle earning interest? Would this interest be taxable when i withdraw ?
- What are the minimum service conditions for the payout for LIC premiums/home emi ? can you provide any link related to the same?
- What are the recent changes in the PF withdrawal regulations?