INCOME TAX27 Sept 2026
EPF withdrawal rules: What happens if you withdraw full amount due to unemployment and later get a new job | Mint
EPF rules changed: after leaving a job, you can now take only 75% of your balance straight away. The last 25% stays locked until you finish 12 months of continuous unemployment. So if you withdraw everything and later find work, you rejoin as a fresh member. Withdrawals before five years of service and above ₹50,000 may attract tax, so check before you withdraw.
Key Statutory Highlights
- Under the EPF Scheme, 2026, members can withdraw up to 75% of their PF balance immediately after losing a job, while the remaining 25% stays locked until 12 months of continuous unemployment.
- Earlier, full withdrawal was allowed after two months of unemployment, but that changed with the new scheme introduced in July this year.
- If you make a full withdrawal and later get a new job, you must qualify again for fund membership and are treated as a fresh member, with fresh contributions linked to your existing UAN.
Actionable Advice for Taxpayers / Founders:Before withdrawing your full EPF balance, check whether you have completed five years of continuous service and whether the amount crosses ₹50,000 in a financial year, since TDS may apply at 10% (or 20% without PAN). A CA can confirm how your case is treated.
Statutory Disclaimer: TaxQue Shorts are AI-assisted editorial briefs for compliance awareness. This brief has not passed every source check; confirm the original notification before acting. This does not constitute formal legal or CA counsel.
TaxQue News Desk
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