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
Helpful
Helpful
Share
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%.
Helpful
Helpful
Share
Read Related Answers
Seeking Legal Advice Regarding Employment Issue
Dear Client,
Usually, PSUs enter into agreements with outsourcing agencies that provide manpower for a particular project or for general day-to-day work in a particular department. PSUs go for outsour...
Accountant in a production house
Dear Client,
The relationship between a probationer and the employer is also governed by the terms of the contract of employment or offer letter. A Probationer is not treated as an employee in the pe...
Not paid the April month salary
Dear Client,
In the prevailing situation, after serving a legal notice for the cause, a complaint against the School Management can be lodged over non-payment of salary to the National Council of Teac...
Salary deduction for not serving notice period
Dear Client,
It is very tricky situation when there is no formal agreement signed between employer and employee but it becomes an implied oral contract,if want to be taken then send a legal notice t...
Less Full and final settlement
Dear Sir
Please approach the following authority or similar authority in a state
The Office Commissioner of Labour
Karmika Bhavan, Dairy Circle,
Bannerghatta Road, Bangalore-29.
080-29753078
labou...
Read Blogs on Employment and Labour
Employment and Labour Lawyers
Find Lawyers by Location