Provisions related to TDS on withdrawal from Employees Provident Fund Scheme, 1952 under section 192A

No TDS on withdrawal from EPF in following cases

  • Transfer of PF from one account to another PF account.
  • Termination of service due to III health of member /discontinuation of Business by employer/completion of project/other cause beyond the control of member.
  • If employee withdraws PF after a period of five year.
  • If PF payment is less than Rs. 50,000/- but the member has rendered service of less than 5 years.
  • If employee withdraws amount more than or equal to Rs. 50,000/-, with service less than 5 years but submits Form 15G/15H along with their PAN

TDS on withdrawal from EPF in following cases

♠ If employee withdraws amount more than or equal to Rs. 50000/-, with service less than 5 years, then

a) TDS will be deducted @ 10% if Form-15G/15H is not submitted provided PAN is submitted.

b) TDS will be deducted @ maximum marginal rate (i:e. 35.88%) if employee fails to submit PAN.

Notes:

1. TDS is deductible at the time of payment.

2. TDS will be deducted under Section 192A of Income Tax Act, 1961.

3. Form 15H is for senior citizens (60 years & above) and Form 15G is for other individuals having no taxable income. Form 15G & 15H are self declarations and may be accepted as such in duplicate.

4. Members must quote PAN in Form No.- 15G / 15H and in Form No. 19.

(Republished with Amendments)

Author Bio

Qualification: CA in Job / Business
Company: Deepak Kumar & Co
Location: Faridabad, Haryana, IN
Member Since: 18 Sep 2017 | Total Posts: 5
Deepak Kumar (Chartered Accountant) View Full Profile

My Published Posts

More Under Income Tax

3 Comments

  1. TaxguruForAPHOTA says:

    Dear Deepak Kumar Ji, I retired in August 2017. I did not withdraw my EPF corpus at that time and applied for withdrawal on July 2020. I served the organisation for full 7 years from August 2010 to retirement in August 2017.
    I was contributing to voluntary provident fund from April 2013 to March 2016. No VPF thereafter. I have filed withdrawal online on Form 19 for full and final settlement. What would be tax implications, the last VPF contribution completing only 4 years and not 5 years? Would the interest on my entire VPF be taxable or only on VPF of year 15-16 ?

  2. Manish Saini says:

    Is TDS applicable on the whole amount of Employers share, Employees Share & even Pension amount if it reaches 50000/-
    Or it is applicable only when the employer & Employees share is more than 50,000/-
    Please clarify this doubt.

Leave a Comment

Your email address will not be published. Required fields are marked *

Search Posts by Date

September 2020
M T W T F S S
 123456
78910111213
14151617181920
21222324252627
282930