PF withdrawal rules are specific to the circumstances under which a subscriber is attempting to withdraw the amount available in the PF account. Thus, it is imperative to understand the nuances around the amount that can be withdrawn, when it can be withdrawn, and cases where tax would be deducted upon withdrawal.
PF withdrawal rules are different for every situation. For instance, a subscriber whose employment has ceased in the previous month attempting to withdraw their PF balance would be governed by different regulations than someone who is attempting to withdraw their PF balance to fund their child's wedding. This guide aims to highlight the exact set of rules for each situation to avoid rejection of PF withdrawal and, more specifically, to save taxes where they may not be payable.
This guide covers the applicable set of rules for six of the most common scenarios under which an Indian subscriber withdraws their PF account balance along with withdrawal limits, tax treatment and details of relevant forms. These include termination of employment, withdrawal earlier than 5 years of continuous service, marriage of the subscriber, death of the subscriber, withdrawal by NRIs and medical emergencies.
The rules in this guide reflect the Employees' Provident Funds Scheme, 2026, notified vide G.S.R. 525(E) on 29 June 2026 and in force since 1 July 2026. It supersedes the EPF Scheme, 1952 in its entirety. Alongside it, the Employees' Pension Scheme, 2026 and the Employees' Deposit-Linked Insurance Scheme, 2026 replaced EPS 1995 and EDLI 1976 respectively. The liberalised withdrawal framework approved by the Central Board of Trustees at its 238th meeting on 13 October 2025 has been given statutory effect through these notifications. The thirteen earlier withdrawal grounds are now three, service-period requirements are uniform at twelve months, and a 25 per cent Minimum Balance now applies to every partial withdrawal.
Two figures decide the ceiling on every withdrawal discussed below. Minimum Balance is 25 per cent of the total contributions standing to your credit, counting both your share and your employer's share along with the interest on them, and it must remain in the account after any partial withdrawal. Eligible Member Balance is whatever remains after setting that aside, and it is the cap on every partial withdrawal in this guide. If your total balance is INR 8,00,000, your Minimum Balance is INR 2,00,000 and your Eligible Member Balance is INR 6,00,000. The minimum partial withdrawal permitted is INR 1,000.
Not sure what your Eligible Member Balance actually is, or whether your claim will clear at all? Check your PF withdrawability before you file.
PF Withdrawal upon resignation / in case of change of employment
Cessation of employment or change in employer is among the most common reasons for withdrawal of PF balance by a subscriber. However, such a withdrawal cannot be made on the day of cessation of employment with an employer. The waiting period for premature final settlement has been extended from two months to twelve months, and what a member can access on exit now splits into two parts, which are summarised hereunder for the ease of reference:
• A partial withdrawal of up to 100 per cent of the Eligible Member Balance, which is the account balance less the 25 per cent Minimum Balance, may be taken under the Special Circumstances head in paragraph 46(4) of the EPF Scheme, 2026. No reason has to be assigned, and it may be taken up to twice in a financial year. In practice this puts roughly 75 per cent of the corpus within reach shortly after exit.
• The remaining 25 per cent, and therefore final settlement and closure of the account, becomes available under paragraph 49(2) only after the subscriber has not been employed in any establishment covered by the Code for a continuous period of not less than twelve months immediately preceding the date of application.
In other words, a subscriber may be eligible to withdraw the EPF account balance, but not immediately after departing from the current employer. The EPFO considers a subscriber to be unemployed only where there is a continuous, uninterrupted gap from the last day of employment. In case a subscriber is employed elsewhere during this period, he is expected to transfer the PF balance via Form 13 rather than opting for withdrawal. In case the subscriber attempts to withdraw the balance while being employed elsewhere, the same may be rejected or lead to complications during an audit.
Applicable forms for withdrawal
• A subscriber may fill out Form 19 for full and final EPF settlement after twelve months of continuous unemployment. Where the exit falls under paragraph 49(1), covering retirement after 55, permanent and total incapacity, retrenchment, a voluntary retirement scheme or permanent migration abroad, no waiting period applies at all.
• A subscriber may fill out Form 10C for claiming the EPS contribution, which is applicable if the subscriber has fewer than 10 years of cumulative service. Note the bigger change on the pension side: under the proviso to paragraph 13(1) of the Employees' Pension Scheme, 2026, the withdrawal benefit can ordinarily be claimed only after thirty-six months have passed from the date the last EPS contribution became due, or on attaining superannuation, whichever is earlier. The earlier two-month wait is gone. Separately, Table IV of EPS 2026 now gives a proportionate benefit for every completed month of service, so subscribers with under six months of contributory service are no longer left with nothing.
• A subscriber may fill out Form 31 for a partial withdrawal, including the Special Circumstances route described above.
When to withdraw EPF balance
In case there is a certainty that the subscriber would not take up new employment in the near future, it is advisable to withdraw the EPF account balance in two stages. The Eligible Member Balance can be drawn under Special Circumstances soon after exit. Closure of the account and release of the 25 per cent Minimum Balance has to wait until twelve months of continuous unemployment are completed. Taking the first tranche does not restart or affect that twelve-month clock.
It is worth noting that this twelve-month waiting period does not apply at all where the exit falls under paragraph 49(1) of the EPF Scheme, 2026. Those grounds are retirement from service after attaining 55 years, retirement on account of permanent and total incapacity for work certified by a registered medical practitioner, migration from India for permanent settlement abroad or for taking up employment abroad, termination of service on mass or individual retrenchment, and termination under a voluntary retirement scheme. There is one further carve-out that is frequently missed: under the proviso to paragraph 49(2), the waiting period does not apply to a female subscriber resigning from service for the purpose of getting married.
PF Withdrawal before completing 5 years of continuous service
This section deals with the situation where a subscriber wishes to withdraw the EPF account balance prior to completion of five years of continuous service.
Relevance of five years of continuous service
The period of five years of continuous service becomes relevant for any subscriber attempting to withdraw their PF account balance due to the sole reason that any amount withdrawn afterwards remains exempt from TDS deduction. However, withdrawals made before the said 5-year mark may attract TDS applicability as the amount withdrawn becomes taxable.
It is not taxed under a single head, and this is where most people get their return wrong. The employer's contribution and the interest on it are taxed as salary. The subscriber's own contribution is not taxed again, except that any deduction claimed on it in earlier years under Section 80C of the Income-tax Act, 1961, now Section 123 of the Income-tax Act, 2025, is reversed and added back under salary. Only the interest earned on the subscriber's own contribution is taxed as income from other sources.
Continuous service includes time with earlier employers, provided the balance was transferred rather than withdrawn. Three years at one employer plus two at the next, with the PF transferred in between, is five years. Withdraw in between and the clock restarts.
TDS Applicability and Rates
If the total withdrawal is before the completion of five years of continuous service, the EPFO deducts TDS prior to releasing the EPF balance amount to the subscriber.
| Conditions | Applicable TDS Rate |
|---|
| Withdrawal of INR 50,000 or less | No TDS deductions regardless of PAN submission status |
| PAN submitted and withdrawal above INR 50,000 | 10% |
| PAN not submitted and withdrawal above INR 50,000 | Maximum marginal rate. The base rate is 30%; with surcharge and cess this is commonly applied at 34.608% |
| Form 121 filed and total income below the taxable threshold | No TDS applies if the total income is exempt as per the taxable thresholds |
Form 121 has replaced Form 15G and Form 15H for EPF withdrawals with effect from Tax Year 2026-27, following the Income-tax Act, 2025 and Rule 211 of the Income-tax Rules, 2026. EPFO no longer accepts the older forms for this purpose. Our guide on how Form 121 replaces 15G and 15H for EPF withdrawals explains what to file instead, and the form itself is available on the Income Tax Department site.
TDS at 10 per cent is rarely the final tax liability. It is a credit against the tax you actually owe, and it can cut either way: you may have more to pay, or you may be due a refund.
TDS Exceptions
A subscriber may avail themselves of a waiver of TDS deduction if the cessation of service has occurred due to reasons beyond their control, including medical reasons (subscriber's or dependant's), discontinuation of the employer's business, project completion, or any other reasons beyond the control of the subscriber.
In such cases, the withdrawal is treated as if it had been done after completion of five years of continuous service from a tax perspective, subject to satisfactory documentary proof upon scrutiny.
PF Withdrawal for Medical Requirements
Withdrawal from an EPF account for medical reasons is a unique situation since it is the category EPFO has made easiest to access, with the most generous limits of any head discussed herein. The conditions attached to EPF withdrawal for medical requirements are summarised hereunder:
1. A uniform requirement of twelve months' total membership of the Fund applies to illness-related withdrawals, as it does to every other partial withdrawal category under paragraph 46. There is one relief: under paragraph 46(5), a subscriber who exits employment before completing twelve months of membership can still take a partial withdrawal, capped at the Eligible Member Balance on the date of withdrawal.
2. A subscriber can withdraw up to 100 per cent of the Eligible Member Balance for illness of self or family. The six months' wages ceiling and the restriction to the subscriber's own share, both features of the repealed 1952 scheme, no longer apply. What caps the claim now is the 25 per cent Minimum Balance, not the wage formula.
Where the UAN is active, Aadhaar-seeded and KYC-verified, an eligible advance claim within the auto-settlement limit is processed with minimal documentation and does not require employer attestation. Documentary proof such as hospital admission or treatment records, a cancelled cheque or a passbook reflecting the IFSC code and, in some cases, employer attestation, is generally called for only where KYC is incomplete, the claim is filed offline, or the claim falls outside the auto-settlement route.
Impact of EPFO 3.0 reforms
The auto-settlement limit for eligible advance claims has been raised from INR 1 lakh to INR 5 lakh and now covers illness, education, marriage and housing. Claims routed through auto-settlement are targeted for release within about three days, without manual scrutiny, subject to satisfaction of KYC verification.
Separately, paragraph 54(7) of the EPF Scheme, 2026 now imposes a hard statutory deadline on all claims: a claim complete in all respects must be settled within twenty days of receipt, any deficiency must be communicated within the same twenty days, and unjustified delay beyond that attracts penal interest at 12 per cent per annum.
EPF Withdrawal for Marriage
Withdrawal from an EPF account for marriage, whether for oneself or dependents, including siblings or children, is among the most traditional reasons recurring in our country, and the regulations around it are generally misunderstood by the common man.
Historically speaking, a subscriber was required to have at least 7 years of EPF membership to be eligible to withdraw the EPF account balance for marriage-related expenses as per Para 68K of the EPF Scheme of 1952. Further, the withdrawal limit was set at 50% of the subscriber's own contribution along with interest earned on it (excluding the employer's contribution and interest thereon). The frequency of withdrawals was also capped at three times during the service period. None of these limits apply any longer, since the 1952 scheme stands repealed.
Impact of EPFO 3.0 reforms
Vide the EPFO 3.0 reforms notified in October 2025 and given statutory effect through the EPF Scheme, 2026, the following changes now apply to marriage-related withdrawals under paragraph 46(2)(c):
• Uniform requirement for 12 months' total membership of the Fund, down from seven years.
• Withdrawal limit raised from 50 per cent of the subscriber's own contribution to up to 100 per cent of the Eligible Member Balance. This is the change most people miss.
• Frequency of withdrawals capped at 5 times during the membership, up from three. The count is calculated afresh from the commencement of the 2026 Scheme, so withdrawals taken under the old rules do not eat into the new limit.
The withdrawal application is filed under Form 31. Keep the marriage certificate and proof of age to hand, though a KYC-verified claim within the auto-settlement limit will usually not require them to be uploaded.
One provision worth knowing if a resignation is planned around a wedding: under the proviso to paragraph 49(2), a female subscriber resigning from service for the purpose of getting married is exempt from the twelve-month unemployment waiting period for final settlement.
PF Withdrawal in the event of the death of the Subscriber
Withdrawal from an EPF account in the event of the death of the subscriber, apart from being a sensitive process, also suffers from uncertainty, as generally, the families dealing with this kind of withdrawal are seen to have been unfamiliar with the process and/or applicable rules. To avoid such a situation, we have outlined the basic requirements below:
Who can file the claim?
• A person who has been appointed as the nominee by the deceased subscriber.
• Where no valid nomination subsists, the amount does not go straight to legal heirs. Under paragraph 50 of the EPF Scheme, 2026, it becomes payable in equal shares to the members of the family, in this order: the spouse; a minor legitimate or adopted son dependent on the subscriber; an unmarried daughter wholly dependent on the subscriber's earnings; a child infirm by reason of physical or mental abnormality or injury and wholly dependent on those earnings; dependent parents, including the father-in-law and mother-in-law of a woman subscriber; and, where the subscriber was unmarried and the parents are not alive, a minor brother or sister wholly dependent on the subscriber. Only where none of these persons exist does the amount become payable to the person legally entitled to it, which is the situation in which a legal heir certificate or survivor's certificate is required.
There is something worth acting on while the subscriber is alive. A nomination made under the EPF Scheme, 1952 is void to the extent it is inconsistent with the 2026 Scheme, and a fresh nomination must be filed after marriage. Checking the e-nomination now saves the family a great deal later.
Which form to fill out?
A nominee (or the legal heir, as the case may be) would be required to fill in the following forms in the event of the death of the subscriber:
• Form 20 for the final settlement of the EPF account.
• Form 10D for the monthly family pension. On the death of a subscriber in service, the family pension is payable to the eligible family members and is not conditional on the subscriber having completed ten years of service, so Form 10D is the correct form in most death cases. Form 10C has a much narrower role here and applies only in limited situations, such as where the subscriber died after attaining 58 without completing ten years of eligible service.
• Form 5IF for the EDLI insurance claim under the Employees' Deposit-Linked Insurance Scheme, 2026. This is a separate payout to the nominee and the one families most often miss. It is capped at INR 7 lakh, with a minimum assured benefit of INR 2.5 lakh where the subscriber was in continuous employment for twelve months before death. It is funded entirely by the employer, payable only where death occurred while the subscriber was in service, and independent of the PF balance. Our note on EPFO's key modification to the EDLI scheme covers how the benefit is calculated.
The nominee (or legal heir, as the case may be) has to file the applicable form, either through the last employer or directly with the EPFO, along with a death certificate, proof of nomination / legal heirship, and a cancelled cheque. Paragraph 54(7) of the EPF Scheme, 2026 requires a claim complete in all respects to be settled within twenty days of receipt by the Commissioner, with any deficiency communicated within the same twenty days and penal interest at 12 per cent per annum where the Commissioner delays without sufficient cause. The status of this application can be tracked via "Know Your Claim Status" on the EPFO member portal.
EPF, EPS and EDLI proceeds received on the death of a subscriber are not taxable in the hands of the nominee.
Death claims are where a small documentation error costs a family months. If a nomination is missing, the service history is incomplete or the claim has already been returned once, talk to a PF expert before refiling.
PF Withdrawal for non-residents due to permanent migration
As discussed in the first portion of this article, in the case of a subscriber who moves abroad permanently, the requirement to wait until the expiry of the twelve-month waiting period is exempted. However, such a withdrawal is subject to the following considerations:
• The amount withdrawn must be credited to an Indian bank account, and it has to be KYC-verified.
• TDS applies if a withdrawal is made before the completion of 5 years of continuous service.
• The EPF claim and the EPS claim no longer move on the same timeline. Permanent migration abroad is an express ground for immediate full EPF settlement under paragraph 49(1)(iii), but the EPS withdrawal benefit is now subject to the thirty-six month condition in the proviso to paragraph 13(1) of EPS 2026, and EPFO has not notified a separate carve-out for permanent migrants. Confirm the EPS position at the time of filing rather than assuming both claims will settle together.
• A subscriber may avail the benefits of DTAA subject to the terms of the agreement, wherever applicable, supported by a Tax Residency Certificate. Note that Form 121, which has replaced Form 15G and 15H, is a declaration available to residents whose total income falls below the taxable threshold, so a non-resident generally cannot use it. Plan for TDS to be deducted and recovered through the return or the treaty route rather than prevented at source.
Withdrawal attempts made by non-residents may take longer to process than a domestic claim owing to the extra verification requirements. The entire process has been outlined for ease of reference at our dedicated NRI EPF withdrawal guide.
Situation-wise quick reference
| Situation | Eligibility | Limit | Waiting Period | Form |
|---|
| Resignation or job loss | 12 months' membership for the partial route | Up to 100% of Eligible Member Balance; balance 25% on final settlement | None for the partial route; 12 months' continuous unemployment for final settlement | Form 31, then Form 19 |
| Before 5 years of service | As per the applicable head | As per the applicable head | As per the applicable head | Form 19 or 31, with Form 121 if eligible |
| Illness of self or family | 12 months' membership | Up to 100% of Eligible Member Balance | None | Form 31 |
| Marriage of self or family | 12 months' membership, up to 5 times | Up to 100% of Eligible Member Balance | None | Form 31 |
| Death of the subscriber | Nominee, else family under para 50 | Full balance, plus family pension, plus EDLI up to INR 7 lakh | None | Form 20, 10D, 5IF |
| Permanent migration abroad | Proof of migration | Full EPF balance | None for EPF; 36 months applies to EPS | Form 19, and Form 10C subject to EPS timing |
| Retirement after 55, incapacity, retrenchment, VRS | As applicable | Full balance including the Minimum Balance | None | Form 19, with Form 10C or 10D |
Conclusion
As evident from the foregoing analysis, PF withdrawal rules are dynamic for each situation, having separate eligibility criteria, tax treatment and applicable forms. Withdrawal under the correct form and by following the correct procedure may help a subscriber (or their nominee) to avoid rejections and excess tax payments.
It is advisable to seek expert guidance while navigating through these complex scenarios to avoid rejection. That is where FinRight's PF consultants can assist you, whether you are a nominee looking to claim final settlement or an individual trying to understand the tax exemptions. Get a free expert consultation before you file your next claim, or check your PF withdrawability first to see where you stand.
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