Employees’ Provident Fund Organisation
(Ministry of Labour & Employment , Govt. Of India)
Bhavishya Nidhi Bhawan , 14-Bhikaiji Cama Place, New Dclhi-110066
No. WSU/6(1)2016/Finance Bill 2016/IT/12859 Dated: 23.08.2016
To
All ACCs (Zones)
All RPFC/OICs of
ROs/SROs.
Sub: Deduction of income tax (TDS) on provident fund withdrawal – Instructions thereof.
Ref: (1) Head Office circular No. WSU/6(1)2011/IT/Vol-IV/5931 dt. 21.05.2015 (at Sl. No. 110 of ‘Office orders & circulars’ for 2015-16)
(2) Head Office circular No. WSU/6(1)2016/Finance Bill 2016/IT/4376 dt 30.05.2016 (at Sl. No. 109 of ‘Office orders & circulars’ for 2016-17)
Sir/Madam,
Please refer to the above referred circulars of Head Office.
2. In para 5 of Head Office circular dated 05.2015 cited at (1) above, it was instructed that in the cases of provident, fund withdrawal (Form-19) wherever TDS has to be deducted @10%, the same may be approved on Form-19 by the APFC (Accounts) and wherever TDS @34.608%, it shall be approved on Form-19 by RPFC level officer.
3. The issue has been reviewed at Head Office and it has been decided that henceforth all the cases of TDS (including 10% as well as 34.608%), in the process of settlement of provident fund claims (Form-19), shall be approved by the concerned approver (AO/APFC) of the claim.
4. This has approval of Central F. Commissioner.
Yours faithfully
(Sanjay Kumar)
RPFC-I (F&A)
We are public Ltd company. We have our own approved PF Trust. PF Trust has authorized our company to deduct tax on behalf of PF Trust. For tax calculation on PF withdrawal before 5 year of service can we follow following?
Total PF accumulations payable added to taxable salary in the current year/year of payment considering taxable salary as per Section 10(12) to extent as provided in rule 8 & 10 of Part A of Fourth Schedule.
If we simply added PF accumulated balance in current year/year of withdrawal of PF pmt, and calculate tax as per slab, then is there any violation TDS provision?