Claiming advance EPF is easy, but withdraw it only if you are in dire need

There is no income-tax on the advance, but withdraw only in dire need

With the Covid-19 pandemic causing severe dent in incomes, many are turning to their Employee Provident Fund (EPF) corpus to tide over this period of distress. 

Employees have withdrawn Rs 2,368 crore from their EPF accounts over the past one month. Financial experts say you should only touch your EPF money if you are in dire straits.

Employees can withdraw up to three months of basic wages and dearness allowance, or up to 75 per cent of the amount in their EPF account, whichever is less. This money does not have to be refunded. 

According to Mumbai-based tax expert Balwant Jain, “Income-tax is