Tax implications of withdrawing your Provident Fund early

What are the tax implications of withdrawing your Provident Fund early?

Early Provident Fund (PF) withdrawals can attract tax liabilities. Withdrawals before 5 years of continuous service are taxable. You can minimize taxes by transferring PF, completing 5 years of service, or planning partial withdrawals for tax-exempt purposes. EPF Buddy can help with tax-efficient PF withdrawals

What is a Provident Fund, and How Does it Work in India?

What is a Provident Fund, and How Does it Work in India?

The Provident Fund (PF) is a government-backed retirement savings scheme in India. Both employees and employers contribute to the fund, which earns interest and can be partially withdrawn or fully withdrawn upon retirement. EPF is managed by the Employees’ Provident Fund Organization (EPFO) and offers tax benefits.