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EPFO Withdrawal Rules: You can withdraw money from EPF if needed, but strict action will be taken on misuse of money – EPFO ​​Withdrawal Rules if subscriber makes early withdrwala and misuse the money he will have to pay penalty

The EPFO ​​recently warned the subscribers that EPF money should not be used for unauthorized work. The EPFO ​​said that if the subscribers are using the money deposited in the EPF for investing in the unauthorized scheme, action can be taken against them. Penalty can also be imposed on them.

Actually, this whole matter is related to withdrawing some money deposited in EPF before retirement. Under the EPF Scheme, 1952, some conditions are allowed to withdraw some part of the money deposited in the EPF. These include higher education, marriage, treatment of disease and buying a house. Apart from this, the money deposited in PF cannot be withdrawn for any other reason. The reason for this is that the money deposited in EPF is for the retirement of the person.

Under the rules of EPFO, the entire money deposited in EPF is received only when the person retires. Even if the employee remains unemployed for more than two months, he can withdraw money deposited in EPF. After the employee leaves the job, there is a two -month waiting period. Subscribers also need to understand that if EPF money is withdrawn before the job is completed 5 years, then it is taxed.

If it is misused by withdrawing money from EPF, then EPFO ​​has the right to take action against the subscriber. He can recover the entire money with interest. This can be understood with the help of an example. According to EPF Scheme, 1952, some money deposited in EPF in special situations is allowed. Suppose the employee withdraws money from EPF to build a house, but he uses it in some other work. It will be considered as misuse of money. Then the employees will not be allowed to withdraw for the next three years. If he pays this money with interest, then this ban can be removed.

Experts say that the objective of the provident fund is the financial security of the subscriber after retirement. For this reason, the rules of withdrawal before retirement have been made quite strict. If a subscribers withdraw this money before retirement and spend it in other works, then after retiring, they may have to face the problem of money.

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