Considering the financial stress that many salaried individuals might be facing because of covid-19 pandemic, government allowed special provision for withdrawal from Employees’ Provident Fund (EPF) account on 20 March 2020.
Since announcement Employees’ Provident Fund organization (EPFO) has processed about 1.37 lakh claims disbursing an amount of about ₹2.8 billion.
The remittances of the moneys have already started taking place. Typically, funds withdrawn from EPF account before the completion of five years of continuous service attract tax, except in certain conditions such as a medical emergency or where the employee or the employer wind up their business or for any other reason beyond the control of the employer.