Can you withdraw PF advance twice?

I have completed five years in the same company. Now I want to use my PF amount for my sister's wedding. My question is, I had done one partial withdrawal earlier during the COVID lockdown, so will applying for my PF amount withdrawal for marriage purposes be taxed? - Anonymous

Yes, you can withdraw provident fund (PF) advance twice. But before we move to the tax implications, let's go over a few things.

There are various circumstances under which withdrawal from your PF account is permissible:

• Purchase/construction of house/flat
• Repayment of loans in special cases
• Treatment of illnesses in certain cases
• Marriages or post matriculation education of children, and
• Withdrawal within a year prior to retirement

Each of these circumstances requires you to be a member of EPFO for a certain period of time after which you become eligible to withdraw from your PF account.

This certain period is seven years in case you want to withdraw for the marriage of yourself/daughter/son/brother/sister, or for the post matriculation education of son/daughter. The eligible amount is 50 per cent of employee share with interest, and you are allowed to withdraw thrice for this purpose.

The advance to fight COVID-19 is available only once and its limit is separate from advances available under other circumstances.

Taxation
Since you have completed five years of continuous service (membership with EPFO), your withdrawal will not be taxable.

However, since the purpose is to fund the marriage of your sister, your withdrawal will depend upon whether you have completed seven years of membership with EPFO. If yes, then your advance request will be approved, otherwise it will be rejected. Moreover, your prior COVID-19 related withdrawal will have no bearing on this application for withdrawal.

Suggested read: Is PF withdrawal taxable?