What are the EPF withdrawal rules and is it taxable?

By the India Law Simplified editorial team · Verified against the bare Acts & official portals · Updated 2026-06-16 · ~2 min read

⚡ Quick answer

You can withdraw your full EPF balance after retirement, or after 2 months of unemployment. Withdrawal is tax-free if you've completed 5 years of continuous service; if you withdraw before 5 years, the amount is taxable and TDS at 10% applies if it exceeds ₹50,000 (20% without PAN). Partial advances are allowed for housing, medical, marriage and education.

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1When you can withdraw

Full withdrawal: at retirement (58), or after 2 months of unemployment. Partial advances: for home purchase/construction, medical emergencies, marriage, education, subject to service and limit conditions, via the EPFO portal.

2Tax treatment

Tax-free after 5 years of continuous service. Before 5 years, the employer's contribution and interest are taxable, and 10% TDS applies if withdrawal is ₹50,000 or more (submit Form 15G/15H if your income is below the limit).

Frequently asked questions

Is EPF withdrawal taxable before 5 years?

Yes — if you withdraw before completing 5 years of continuous service, the withdrawal is taxable and 10% TDS applies if the amount is ₹50,000 or more. After 5 years it is tax-free.

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General information for AY 2026-27, not professional advice. Laws change with each Finance Act, notification or amendment and depend on your specific facts — verify the current position with a licensed CA or advocate before acting.