EPF Withdrawal Rules 2026: The Employees’ Provident Fund, or EPF, is made for long-term saving. It is one of those money boxes that people keep for the future. Members can take out some money before retirement in certain cases, but the full final amount is usually paid only after they leave the job. EPFO says a final PF settlement is allowed after resignation and after two months of unemployment, and its claim page also says the final settlement and pension claims are handled through the proper claim forms.
EPFO also says claim status can be checked online, and its form instructions say people who give a mobile number can get SMS alerts at different stages of approval. A PF claim should be settled within 20 days.
It also says eligible auto-mode advance claims are now processed in about 3 to 4 days, or 72 hours, after the recent EPFO upgrade.
When can you take part of your EPF?
Partial withdrawal is allowed for some needs while a person is still working. EPFO allows advances for things like medical treatment, marriage, education, housing and other special needs. Its claim page and instructions point members to the advance or withdrawal route for these cases. The system is built so that people do not have to break the whole fund just for one emergency.
The latest EPFO reform also keeps a minimum 25% balance in the member’s account, so up to 75% of the eligible balance can be withdrawn for part withdrawals. EPFO’s 2025 press note said this minimum balance is meant to protect the retirement corpus.
Tax rules and TDS
Tax is the part people often miss. The Income Tax Department says a recognised provident fund payout is tax-free if the employee has completed 5 years or more of continuous service. If the money is taken out before 5 years, it can become taxable and TDS may apply.
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The department’s current guidance says the standard TDS rate is 10% when PAN is given, while non-furnishing of PAN can attract a higher rate under section 206AA. For EPF withdrawals, the department’s current salary guidance specifically mentions 10% TDS if the withdrawal exceeds ₹50,000, and 20% if PAN is missing.
New Form 121
The old Form 15G and Form 15H system has now been replaced by Form 121 for the Income-tax Rules, 2026. The Income Tax Department says Form 121 is the new declaration for tax year 2026-27, and it is the current form for claiming no TDS when the estimated tax liability is nil. EPFO’s own circular also refers to Form 121 as the new form in place of the earlier 15G and 15H.
Which Forms are used?
- For final PF settlement, EPFO says members should use the final settlement route after leaving service and after the waiting period.
- For pension benefit, the current EPFO claim page points eligible members to Form 10D.
- For partial or advance withdrawal, the claim route is the advance or withdrawal form system.
Members should also make sure their date of exit is updated before filing the full claim.
For a person with a ₹2 lakh EPF balance the 25% minimum balance rule means only the eligible part can be taken out in part withdrawal and the rest stays in the account.
