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  
Post a Comment

Related Posts

    • Change in pension withdrawal rules coming

      Soon, the EPFO will allow withdrawal of pension contribution only after 2 years of exiting from your previous job. Right now, pension sum can be withdrawn after 2 months of leaving a job.

      By Satvik Singh
    • EPF policies are disincentivising honest tax payer

      PF tax rules change from April. Employee contributions to PF above ₹ 2.5 lakh p.a. will be taxed.. So anyone who earns more than ₹20.83 lakhs p.a. will attract interest on EPF contribut...

      By Satvik Singh
    • How to access my forgotten FF Account

      I don't know my PF account number. I know my PAN and don't have any info about my OF account. How do I get my money from that account?

      By Ashish Patel
    • Proposal to tax PF contribution over a certain limit is retrograde

      The 2021-22 Budget is notable for not imposing fresh taxes, but for one clause lurking in its fineprint. This is the plan to withdraw the tax exemption on the interest income earned by employees&rs...

      By Satvik Singh
    • EPF interest payout

      did anyone receive interest of EPF for the year 2019/2020 in EPF passbook . Last heard it was supposed to be credited by 31st Dec 2021

      By Prasanna Pandapkp
    • PF TDS Deduction

      Hello there. Is it true that if the PF account is settled within 5 years, then TDS gets deducted from it? I had settled my PF account within (I suppose) 5 years mentioning that I am going abroad an...

      By Suhail Sayed
    • Good news on EPFO front

      EPFO to give interest rate of 8.5% to its subscribers for 2019-20 at one go. Proposal pending before the finance ministry. The current bull market prompted the EPFO to offload its equit...

      By Satvik Singh
    • Interest for 19-20

      Has anybody received Interest for 2019-20 credited in their account? News said 8.15% would be credited by Diwali but I couldn't see anything in my account.

      By Shibdas Mallick
    • Inoperative account of PF

      I have a company PF which I left 2010 and I didn't claim the PF amount. As gone thru EPFO website I got to know that my account will under inoperative account. I have sent composite claim form (Non...

      By Punitha M
    • PF fund withdrawal after retirement - Age 59

      I submitted PF withdrawal form when I took retirement from the Pvt employer and I received majority of the PF balance - employer contribution as well as my contribution. I applied after ...

      By Ajit Shah
    • Senior Citizens

      Govt. is only to extract taxes for its leaders. Senior Citizens get concessional or free welfare measures in a welfare state. Ours is a leaders govt. for its own welfare. Revenue hardly meets its l...

      By Vijay Agarwal
Enter your email and mobile number and we will send you the instructions

Note - The email can sometime gets delivered to the spam folder, so the instruction will be send to your mobile as well

All My Circles
Invite to
(Maximum 500 email ids allowed.)