TDS on PF withdrawals

Here is a 10-Point Cheat-Sheet

1) Provident fund withdrawals before five years of completion of service will attract tax deducted at source (TDS) at 10 per cent.

2) If the accumulated provident fund balance is less than Rs 30,000, TDS would not be applicable.

3) TDS will be deducted at 34 per cent if subscriber fails to submit PAN.

4) Exemption from TDS has been given to subscribers with no taxable income, provided they submit the required forms.

5) Two avoid the levy of TDS, Form No. 15G (other than senior citizens) or 15H (for senior citizens) can be submitted, provided the provident fund amount payable is up to Rs 2,50,000 and Rs 3,00,000 respectively.

6) Form No. 15G or 15H are self-declaration forms that can be furnished by individuals to state that their income is below the taxable limit.

7) TDS shall not be deducted in case of transfer of provident fund from one account to another.

8) TDS will not be applicable in case of "termination of service due to ill health of member, discontinuation / contraction of business by employer or other cause beyond the control of the member," the retirement fund body said.

9) In case of withdrawal after five years or more of continuous service, no TDS would be applicable.

10) For computing the period of continuous service, the period of previous employment can also be included, if the accumulated balance while at previous employer is transferred to provident fund of the new employer. more  

View all 12 comments Below 12 comments
Thanks for your information, about form 13. more  
@Rajesh Laik, if you leave a company and join another, you will have two PF: old and new. Old one can now be transferred to new one using Form 13 or online transfer ( if your establishment is registered for online transfer) or you can withdraw the old amount and then deposit the cheque to your bank account. more  
Well if government bound private companies to pay DA, private companies will find umpteen ways to adjust their budget. In private you have to fight to survive, and if you r really good you would be paid pretty well not to care about DA. Where you are not sure if you will be allowed to come in the next day, DA is far too expectation, though a valid one. more  
It is seen many IT/private companies give Basic pay less and no Dearness allowance so that they can pay HRA less(50% of Basic) and pays PF contribution of employer only on basic pay, due to this employee suffers.In govt. there is basic pay plus DA and on both get together they pay 12% PF contribution employer or employee. In private cos also they should have DA component so that rising prices can be adjusted and accordingly PF deductions of employer and employees. PF deductions of employer or employee are only retirement benifts as no pension is there. more  
Can i transfer my P.F Amount online, to my bank account, or can i mix the old P.F with new P.F generated, from one organization to other, is there any provision like this. more  
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