Under Income Tax Rule, for which reasons withdrawal from Provident Fund can be made ?

Question

Under Income Tax Rule, for which reasons withdrawal from Provident Fund can be made ?

Answer 1

Income Tax rules do not provide for any reason(s) for withdrawal from Provident Fund. But an assessee is eligible for exemption of PF withdrwal only if it was withdrawn after 5 years.

Answer 2

Withdrawal from Provident Fund can be made for:

Purchase of house

Purchase of land

Marriage of son/daughter

Religious ceremony

Withdrawal can be a refundable or a non-refundable loan.

The govt. now a days does not encourage refundable PF loan.

Answer 3

Income Tax rules do not provide for any reason(s) for withdrawal from Provident Fund. The withdrawals from provident fund are permitted as per the Provident Fund Rules.