The Employees Provident Fund (EPF) is a saving scheme introduced, under the Employees Provident Fund and Miscellaneous Act, 1952, with an aim to promote savings which can be used post-retirement of an employee. Section 192A was inserted vide the Finance Act 2015 applying the tax deduction at source (TDS) provisions in case of the premature withdrawal from Employees Provident Fund.
The current article highlights the provisions of section 192A covering basic provisions, time of deduction of TDS, the rate of deduction of TDS, the due date of deposit and filing of return and the circumstance under which TDS is not deductible under section 192A.
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1. Basic Provisions of Section 192A
Section 192A stipulates that the trustees of the Employees’ Provident Fund or any person authorized under the scheme are required to deduct tax at source in case the employee doesn’t fulfill conditions stipulated under rule 8 of part A of Fourth Schedule. In a nutshell, the TDS is deductible, if the following conditions are satisfied –
1. The amount from EPF has been withdrawn before completion of continuous 5 years of service, and
2. The amount withdrawn is more than INR 50,000.
2. Time of deduction of TDS under Section 192A
The Deductor is required to deduct TDS at the time of payment of the accumulated balance due to the employee.
3. Rate at which TDS is to be deducted under Section 192A
In case the provisions of section 192A are applicable, the Deductor is required to deduct TDS @ 10%. However, if the employee fails to furnish his Permanent Account Number (PAN), then, the Deductor would deduct TDS at the maximum marginal rate.
4. Due date of TDS deposit and filing of requisite return
The Deductor is liable to deposit TDS with the Government within 7 days of the next month in which TDS is deducted. However, in case of TDS deducted for the month of March, the same is to be deposited on or before 30th April.
The Deductor is required to file Quarterly return in Form 26Q within following due dates –
| Quarter | Due date |
| April – June | 31st July |
| July – September | 31st October |
| October – December | 31st January |
| January – March | 31st May |
5. Circumstances under which TDS not deductible under Section 192A
TDS is not deductible under the following circumstances –
- The aggregate amount of EPF withdrawal is less than INR 50,000.
- The withdrawal has been done after continuous service of 5 years.
- In case of a job change, the PF amount is transferred from one account PF account to another.
- If there is a termination of employment due to employee’s ill health, completion of the project for which employee was employer, discontinuation of the employer’s business or any other reason which is beyond the control of the employee.
- If the employee has submitted Form 15G/ Form 15H along with the PAN.
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Dear Sir,
As per Section 192A if PF is withdrawn before service of 5 Years than that would be taxable @10% but In One case Continuous service of 5 Years is short by 26 days and the accumulated amount is paid when the 5 Year condition is fulfilled.
In this scenario what will be the treatment.
My son withdrew EPF within 5 years during 2020-21 financial year of Rs 348000 and TDS has of Rs 34800 has also been deducted. My query is where I have to show Rs 348000 in ITR 1
Sir, Pls let me know under which head I have to declare the withdrawal of EPF amount.
Which I have received In February 2020.
regards
Senthil
Can The TDS deducted u/s 192A be adjusted with sec 80c or is it non adjustable?
For withdrawl of PF after 4 yrs. Of service, tax has been deducted u/s 192a. Whether deduction under chapter vi can be claimed at the time of return submission?
Hellow Sir,
I was working in A Private Organization and got retirement on June 2018.
As Per epfo rule my PF is deposed with the co. trust frome my retirement to 3 years, I received only statement till 31st March 2019 and did not received 2019-20, I will withdraw my PF after 3 years (June 21 ) my question to you is that interest witch came in the year 2018-19 & 2019-20 can be shown in my return Ay 2020-21 Thank you.
Would TDS be deducted on the aggregate amount if the pf withdrawl exceeds 50,000. Or it is only 10% on the amount above 50,000 slab….??
I have deduction of 80K under 192A for withdrawal PF amount.So can you please guide which ITR do i need to submit and which head it should disclose.(I had salary income from current company)
If you go literally by above IT provisions, tax deducted during last 4years from pf members are against the rules. 99%pf members are opting for premature withdrawal due to job loss/ business closure etc i.e. reasons beyond their cobtrol and still crores have been collected by IT dept from these poor workers during last 4years. EPFO never gave option to mention the reasons for premature withdrawal.
Dear Sir, in case of private trust , tds required to deduct as per provision of section 192 and return is required to file in form 24Q instead of form 26Q.
The provisions of Section 192A are not applicable to private trust?