PF Withdrawal
7 months ago
I have worked for 7 yrs with breaks my service is not continuous anytime for consecutive 5 yrs so If I withdraw my PF is there TDS or any other deduction on that?, currently I'm unemployed fro 6 months. if yes is there way to avoid TDS deduction.?
A.Dear client,
If you withdraw your PF before completing five years of continuous service, TDS (Tax Deducted at Source) will be deducted at a rate of 10% on the balance amount if it is above Rs. 50,000
However, if you have been unemployed for more than two months, you can submit Form 15G or Form 15H to avoid a TDS deduction
If you have been unemployed for more than two months, you can submit Form 15G or Form 15H to avoid TDS deduction. Form 15G is for individuals below 60 years of age, and Form 15H is for individuals above 60 years of age
Please Ensure your PAN is updated with your PF account. If your PAN is not updated, TDS will be deducted at the maximum marginal rate
If you withdraw your PF before completing five years of continuous service, TDS (Tax Deducted at Source) will be deducted at a rate of 10% on the balance amount if it is above Rs. 50,000
However, if you have been unemployed for more than two months, you can submit Form 15G or Form 15H to avoid a TDS deduction
If you have been unemployed for more than two months, you can submit Form 15G or Form 15H to avoid TDS deduction. Form 15G is for individuals below 60 years of age, and Form 15H is for individuals above 60 years of age
Please Ensure your PAN is updated with your PF account. If your PAN is not updated, TDS will be deducted at the maximum marginal rate
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A.Dear Client,
If an employee is unemployed for 60 days in a row, the amount in his or her EPF account is paid to the employee in full and that amount will be tax-free. However, if the employee withdraws the amount before it matures while he is employed, tax deducted at the source (TDS) will be applicable. Under Section 192A of the Income Tax Act, No TDS would be levied, if the employee has completed 5 years of service and withdraws more than or equal to INR 50,000 from EPF account. If PAN details have been furnished, the rate of TDS would be 10%. However, if PAN details are not furnished, TDS will be deducted at the maximum tax slab rate which is 30%.
If an employee is unemployed for 60 days in a row, the amount in his or her EPF account is paid to the employee in full and that amount will be tax-free. However, if the employee withdraws the amount before it matures while he is employed, tax deducted at the source (TDS) will be applicable. Under Section 192A of the Income Tax Act, No TDS would be levied, if the employee has completed 5 years of service and withdraws more than or equal to INR 50,000 from EPF account. If PAN details have been furnished, the rate of TDS would be 10%. However, if PAN details are not furnished, TDS will be deducted at the maximum tax slab rate which is 30%.
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