New Delhi, July 17 -- Many salaried employees assume that withdrawing money from their Employees' Provident Fund (EPF) is always tax-free. However, that is not entirely true. The tax treatment of an EPF withdrawal depends on several factors, including the employee's years of continuous service, the reason for withdrawing the money and the amount being withdrawn.

Understanding these rules is essential, particularly if you are switching jobs, dealing with a financial emergency or planning to access your retirement savings before retirement. Since the EPF is designed as a long-term retirement savings scheme, premature withdrawals are subject to specific tax provisions.

The taxability of your EPF withdrawal is determined by factors such as ...